Administration > Maintenance > Tax
Tax ID's contain the rules that define how tax amounts are calculated. Tax ID's are then associated to Tax Schedules which are selectable on transactions in WorkPlace that are Tax enabled.
Check the checkbox to make the Tax ID active. Active Tax ID will be available for selection on transaction and maintenance pages.
This field is only available when Intercompany is registered. Optionally enter or select the company that the Tax ID will be applicable for.
Type in up to 120 alphanumeric characters to indicate the Tax ID.
Type in up to 60 alphanumeric characters to further describe the Tax ID.
Type in or select a valid GL Account from the zoom window. GL Accounts are setup in GL Account in Maintenance under the General Ledger heading.
Select an option from the drop down menu on what the Tax ID calculation will be based on: Amount per Unit, Percent of Extended Amount (this is the default option), Percent of Freight or Percent of Unit Amount.
Type a number for the percent the calculation will be based on. This is used for the Based On options: Percent of Extended Amount or Percent of Freight
Type a number for the amount the calculation will be based on. This is used for the Based On option: Amount per Unit.
Type a number for the minimum purchase amount applicable for the tax calculation. Only amounts greater than or equal to the minimum taxable amount will be subject to the tax percentage / amount. This is not applicable for the Based On option Amount per Unit.
Type a number for the maximum purchase amount applicable for the tax calculation. If this field is set to zero (0) then no maximum restriction will be applied when calculating tax. Only amounts less than or equal to the maximum taxable amount will be subject to the tax percentage / amount. This is not applicable for the Based On option Amount per Unit.
Enable this option to indicate that the tax amount is included in the Price for any associated transaction. When enabled, this setting will default to the 'Tax Included' checkbox on the Tax Details page for transaction lines. When this option is not enabled (unchecked), users will not be permitted to check the 'Tax Included' option for this Tax ID in the Tax Detail page. When tax is included in the amount for a transaction line, the true 'Taxable Amount' will be automatically calculated based on the associated tax percentages.
Example:
A transaction line is entered with a Quantity of 1 and Price of $100 for a total 'Line Amount' of $100 that is subject to 3 taxing authorities outlined by the Tax ID's below;
Tax ID |
Taxable Amount |
Tax Amount |
TaxID1 = 25% Tax Included CHECKED |
$57.14 |
25% = $14.29 (included) |
TaxID2 = 50% Tax Included CHECKED |
$57.14 |
50% = $28.57 (included) |
TaxID3 = 2% Tax Included UNCHECKED |
$57.14 |
2% = $1.14 (additional) |
The Taxable amount for the transaction line is calculated to be $57.14 (100/(1 + 0.25 + 0.50) which serves as the basis for each tax calculation. The tax calculations above result in the following;
Line Amount = $100.00
Tax Included = $42.86
Additional Tax = $1.14
Total Tax = $44.00
Line Total = $101.14 (Original Line Amount + Additional Tax)
Tax Classes provide organizations the option to define multi-dimensional tax relationships by tax authority, Vendors and Items. Once enabled and configured, these relationships automate tax class rate calculations and exemptions at the line level during transaction entry.
Once enabled, Vendor and Item Tax Classes can be defined for each Tax ID within WorkPlace along with the option to mark a Class as 'Exempt' from tax calculations. The primary purpose for setting up Tax Classes is to define tax rates for specific Vendor Class and Item Class combinations so at least one Tax Class of each type (Vendor and Item) will be required.
Check the box to select, then press SAVE to remove the line.
Type in up to 60 alphanumeric characters to indicate the tax Class ID.
Type in up to 255 alphanumeric characters to further describe the Class ID.
Check this option to indicate that the Tax Class is tax exempt from tax. When enabled, the total tax amount for this Tax ID will always be zero ($0) when this Tax Class applies to a transaction line.
Select Vendor or Item to indicate where the Tax Class will be assigned. At least one Class of each type will be required in order to setup Tax Class Rates. Vendor Tax Classes will be available for selection on the Vendor Class and Vendor Maintenance pages. Item Tax Classes will be available for selection on the Item Group and Item maintenance pages. The default Vendor and Item Class assignments will automate the tax detail calculations at the transaction level throughout Workplace.
Once Tax Classes are defined (or integrated from supporting ERP's), they are available to assign Tax Class Rates for each combination for the selected Tax ID.
A column will appear for each Tax Class that has been setup on the Tax Classes tab with a type of 'Vendor'. The column headings will be displayed as the Class ID - Description.
A row will appear for each Tax Class that has been setup on the Tax Classes tab with a type of 'Item'. The row captions will be displayed as the Class ID - Description.
Enter the percentage tax rate for each combination of Vendor and Item Classes for the Tax ID. This is the rate that will be calculated for transaction lines when those Vendor and Item Classes apply.