Adding Tax Groups

Learn more

You create sales and purchases tax groups to which you assign tax authorities.

Notes:

Tax reporting currency allows clients to report taxes in a currency that is different than the customer/vendor currency or the functional currency. Some countries, such as Singapore, require that when invoicing a source currency (for example, USD), the tax amount and the exchange rate used be shown on the invoice in the currency of the country (for example, Singapore).

Since taxes are remitted to the taxing authority in the reporting currency, tax tracking will reflect the information for this reporting currency. General Ledger entries will be in the reporting currency for remitting and audit purposes.
When you assign a tax authority to a tax group, and then change the Report Tax on Retainage Document option on the Tax Authorities screen for that tax authority, you must also update the tax group to reflect this change and to avoid data integrity problems.

To add or edit a tax group:

Open More > Tax Services > Tax Groups.
In the Tax Group field, enter a code to add a new tax group, or specify an existing group.
On the Transaction Type list, select the transaction type. More...
- If you select Sales, the sales tax table is displayed.
- If you select Purchases, the purchases tax table is displayed.
If you use multicurrency accounting, select a tax reporting currency and tax reporting rate type.
Select a tax calculation method.
In the table, select an authority, and then:
1. If the authority is taxable, click the Taxable field and change the entry to Yes.
2. If the authority uses a surtax, click the Surtax field and change the entry to Yes.
3. Use the Surtax On Authority field to specify the surtax authority.
Click Save.