Tax Jurisdiction

accounting_128_hot The Tax Jurisdiction function allows for application of sales tax, use tax, Environmental Recovery (ERF) fees and one “Other” tax that may be applicable.

Each tax jurisdiction may be composed of up to 25 entities. Once an entity is set up, it may be used on multiple tax jurisdictions and types. For example, if you apply both a state tax and a county tax, you may set up the state tax as one entity and the county taxes as separate entities. When you set up the jurisdiction, you enter the state entity on each one and the county entity that would be specific to that jurisdiction.

The Tax Jurisdiction function can be accessed from:

Store Center- Setup

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Tax Jurisdiction Code. Select from the drop-down box. The tax code represents a tax jurisdiction, such as a county. For example, if your store is located in an area where each surrounding county charges a different tax based on the combination of state, city and transit district tax, you can have several tax rates you must charge, based on the customer’s location.

After selecting the code, hit the ‘Tab’ key.

Each tab represents a different tax. Select any/all tabs you want to edit.

Description. Enter the description for this tax code (jurisdiction) and type. This will appear on reports so it should be self-explanatory. For example, if this is the sales tax for San Francisco County, make the description “San Francisco Sales Tax”.

Short Description. Enter an additional short description for this tax code.

Reporting Code. If the user plans to break down the tax into entities, skip this field. The reporting code is a way to link multiple jurisdictions or entities when they have the same payee. This is a sorting type for the detail tax report.

NOTE. The Description and Short Description and Reporting Code may all be the same.

Calculate On. Select whether you want the tax code calculated on Dollars or on Quantity.

Tax%. Enter the percentage of tax that is charged for this type of tax in this tax jurisdiction. For example, 7.00 for 7%.

Rounding. Select Normal for normal rounding. Select Round Up to always round up. Select Round Down to always round down.

Check Boxes. Check the boxes for tax on tax. If your store is run out of the United States, leave all boxes unchecked.

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Select Add Entity to add an entity.

Entity. The lowest level of taxing authority you must report on. (8 characters)

Description. Description of the entity. (25 characters)

Tax %. Tax % specific to this entity.

Reporting Code. The reporting code is a way to link multiple jurisdictions or entities when they have the same payee. This is a sorting type for the detail tax report. (20 characters)

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Delete. Select Delete to delete a Tax Jurisdiction. A pop-up box will ask you which tax jurisdiction(s) you want to delete.

Cancel. Select Cancel to exit the Tax Jurisdiction function.

Save. Select Save to save a Tax Jurisdiction.

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