Taxes for organizations
You can specify default tax general ledger accounts and tax codes to calculate the amount of tax that is due on a purchase requisition, request for quotation, purchase order, or invoice. You can also specify the order in which tax codes are used in calculations.
A tax type can be, for example, a federal, state, or city sales tax. Another tax type might be a special tax for handling hazardous material.
A tax code represents a particular tax rate, such as MA for the Massachusetts sales tax of 5%. Therefore, one tax type might include tax codes for all state or provincial sales taxes.
The requirements of your financial system determine how you specify the tax types, and also how many tax types you use. In the Tax Options window of the Organizations application, the default number of tax types that you can view is five. If your financial requirements dictate additional tax types, you can use the Database Configuration application to specify up to 27 different tax types. Each tax type can have any number of tax codes.
- Taxes paid
- Taxes paid to vendors
- Unpaid taxes
- Taxes not yet paid to the government