Tax Groups Screen

Learn more

Tax Authorities Screen

Tax Classes Screen

Tax Rates Screen

Open Tax Services > Tax Setup > Tax Groups.

Displays the date that the record was most recently changed.

This field is updated with the session date automatically when you add a new tax authority, tax group, or tax rate, and when you change an existing record.

Select a tax calculation method for the group:

  • Calculate tax by summary. Tax is calculated on the invoice total, by multiplying the document amount by the tax rate.

    Important! We recommend that you do not select this method if any authority in the group allows tax to be included in the price.

  • Calculate tax by detail. Tax is calculated on each invoice detail, by multiplying the tax base by the tax rate. The total tax for the invoice is the sum of the tax calculated for each detail line.

The method you select applies to all authorities in the group.

Note: Due to rounding, the two methods may produce different results.

If you need to calculate tax for an authority by both detail and summary, you must set up two tax groups for the same authority.

Specify a code for an existing tax group, or enter a unique code of up to 12 characters for a new tax group.

Enter a description or name for the tax group. The description can be up to 60 characters long. By default, the system displays the description associated with the specified tax group.

This field appears only if the multicurrency option is selected in the Company Profile.

This feature allows you to report taxes in a specified currency that is not the customer/vendor currency or the functional currency.

Note: The currency of the tax authority must be the same as the currency of the tax group. All customers and vendors assigned to a tax group must use the same currency as the group.

You cannot change the currency after you have added the authority or group.

A description of the specified currency displays in the Tax Reporting Currency Description field.

This field appears on the Tax Groups report only if the multicurrency option is selected in the Company Profile.

A description on the specified rate type displays in the Tax Reporting Rate Type Description field.

Select a transaction type: Sales or Purchases.

Displays the description for the tax authority.

To apply a surtax to the tax amount for a selected tax authority, select Yes in this field. You can then select a surtax authority in the next field.

Note: If a tax authority uses a surtax, the tax authority and the surtax authority must both use the same setting in the Report Tax On Retainage Document field. For more information, see Tax Authorities Screen.

Displays the description for the surtax authority that is specified in the Surtax On Authority field.

Select the tax authority on which the surtax is based.

Note: If a tax authority uses a surtax, the tax authority and the surtax authority must both use the same setting in the Report Tax On Retainage Document field. For more information, see Tax Authorities Screen.

Indicates whether the tax charged by an authority is taxable.

The order of tax authorities in a tax group is important for taxes that are taxable. For more information, see About the Order of Tax Authorities in a Group.

If an authority within the tax group is taxable by another authority, all authorities assigned to the tax group must use the same setting in the Report Tax On Retainage Document field. For more information, see Tax Authorities Screen.

Select the code for a tax authority to which your company remits taxes.

Note: Only tax authorities that use the same source currency as the tax group are listed.

Overview

You use the Tax Groups screen to: