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The Tax Settings are a prerequisite to performing tax calculations in all areas of the application. Taxation rebate processing begins at the requisition stage and carries through to the purchase order and invoicing stages.
Tax Settings are user defined calculations for the various taxation categories, as well as the formulas for add-on costs on purchase orders. They also act as defaults for all points of entry where taxes need to be charged, for any type of purchase or receivable.
Tax Settings includes various areas related to different taxing information and screens: Tax Settings (General), Extra Rate Settings, Tax GST/HST Settings.
The Tax Settings screen displays a standard table from 1-4. The four (4) table codes and the types of definitions are standard.
1.Discounts
2.Federal Tax
3.
4.
The Tax Settings includes the following screens, where each can be edited:
•Extra Rate Settings
•Tax GST/HST Settings
Use the following steps to edit the tax settings:
1. Click on the System tab, click Settings, and select Tax.
2. In the
Use the Extra On column to identify if the tax calculation will be calculated on another tax code. IF so, enter the table # and navigate to the next column. For Example: HST (table 2) is charged on the discounted price (table 1).
In the Sale Tax column select one the following options: Federal or Provincial.
Note: For GST/HST boards, select the Federal tax rate portion. For GST/PST boards, select the Provincial tax rate portion.
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•Each profile change requires a New Note to indicate a reason for the change.
•a new code to open up corresponding profile for changes to specific Tax Codes table. If selected table is a indicated as F for Federal in the Sales Tax column – Click will open the TAX GST/HST PROFILE, otherwise the system will open corresponding EXTRA RATE PARAMETERS PROFILE.
•When completed use SAVE button to make changes permanent.
6.1.2 Tax GST/HST Setting
• Federal tax table in the Tax Master Settings grid to open up this profile.
•Tax Codes - must be defined first. Each line must be completed before starting a new line.
•Tax codes are a 1 character identifier, which is used throughout the application to indicate a tax calculation type.
•The first tax code entered should be the code that will be used the most. IE – HST – 13%. This code will appear as the default value when taxation is being selected, and may be overridden at the time of data entry.
•Enter the desired code and navigate to the next column.
•Internal Description – requires the description to be used for all internal users, and selection lists relating to the GST/HST Category.
•Enter the Description and navigate to the next column.
•Vendor Description – requires the description to be used externally on all Purchase Orders.
•Enter the Description and navigate to the next column.
•Rate 1 – requires the federal tax rate portion.
•Enter the rate and navigate to the next column.
•Rate 2 – requires the provincial tax rate portion.
•Enter the rate and navigate to the next column.
•Rebate 1 – requires the rebate rate for the federal portion of the GST/HST Tax.
•Enter the rate and navigate to the next column.
•Rebate 2 – requires the rebate rate for the provincial portion of the GST/HST Tax.
•Enter the rate and navigate to the next column.
•Rebate1 GL COM – requires the GL account code to be used for rebate 1 processing for commitment related processes.
•Enter the GL account code, or use the GL wizard to search and select a GL.
•Navigate to the next column.
•Rebate2 GL COM – requires the GL account code to be used for rebate 2 processing for commitment related processes.
•Enter the GL account code, or use the GL wizard to search and select a GL.
•Navigate to the next column.
•Rebate1 GL EXP – requires the GL account code to be used for rebate 1 processing for expense related processes.
•Enter the GL account code, or use the GL wizard to search and select a GL.
•Navigate to the next column.
•Rebate2 GL EXP – requires the GL account code to be used for rebate 2 processing for expense related processes.
•Enter the GL account code, or use the GL wizard to search and select a GL.
•Selectable in Req – check box - requires a Selected/ Unselected Input to indicate if the tax code will be selectable in the requisition process.
• Provide Selected/ Unselected response and navigate to the next column.
•Extra/Inc – combo box - Pick an ‘E’ to signify the taxes will be calculated as ‘extra’ on the price. To include the taxes as part of the price, pick an ‘I’.
•Pick the E or I and navigate to the next column.
•AR Invoice GL – requires the GL account code to be used for AR Invoice processing.
•Enter the GL account code, or use the GL wizard to search and select a GL.
•When finished use SAVE button to make changes permanent.
6.1.3 Tax – Extra Rate Parameters – purchase orders often incur extra charges such as freight/duty/taxes. Each of those areas is linked to an Extra Rate Parameters profile. All together there are 4 tax table. Federal Sales Tax codes are defined in the TAX GST/HST Settings. The rest of the tax tables are defined in the Extra Rate Parameters tables; assigning a code/description and rates, which are then selected in data entry when required. Please note that previously (BAS2000 v2.70) there was just one profile for 3 tables. From now one there will be a separate profile for each of the extra charges.
• for a Non-Federal tax table in the Tax Master Profile grid to open up one of these profiles.
•Each table can accommodate multiple codes, their descriptions and the amounts.
•Navigate to Code & define a 1 digit alpha/numeric code. This code must be unique to the profile.
•Navigate to the Description field & enter the description of the code.
•Navigate to the Rate field & enter the rates. Rates are defined as either a %, a negative $ value, or a positive $ value.
•When finished use SAVE button to make changes permanent.