The Sales Tax Code List is used to review, manage, and edit sales tax codes.
A sales tax code simply answers the yes/no question of whether or not sales tax applies on a sale. The simplest of sales tax code setups would perhaps only include two codes — one for tax (TAX) and one for non-tax (NON).
At some point, however, you may be audited by state sales tax officials who will want to know why tax was not charged on any given transaction. This is why it can be important to setup more than one non-tax item, each one indicating why tax was not charged. For instance, a non-tax code of CHU might be setup to indicate tax was not charged because the customer was a church. Another example of a non-tax code might be LBR to indicate tax was not charged on a particular line item because it was labor (a common scenario in many states).
If your organization does work in more than one state, you might want to setup a taxable tax code for each one, for tracking and reporting purposes. For example, service companies near Aptora’s headquarters probably perform work in both Kansas and Missouri, so they probably have taxable tax codes KS and MO setup in their system. Both of these tax codes would answer “Yes” to the taxable question, but they would also help in reporting the use of those codes.
From the main menu, click Customers | Sales Tax | Sales Tax Code List.
The easiest way to access a command available in the list is via the right click menu. You can also get to these commands under the Tax Code List menu option in the upper left corner of the form.
- To create a new tax code, right click anywhere in the list and choose New Tax Code from the pop-up menu.
- To edit a tax code, right-click on it and choose Edit Tax Code from the pop-up menu. You may also double click on the item to edit the tax code.
- To delete a tax code, right-click on it and choose Delete Tax Code from the pop-up menu.
- To inactivate a tax code, right-click on it and choose Make Tax Code Inactive from the pop-up menu.
- To export whatever information is currently displayed in the list, right-click anywhere in the list and choose Export List from the pop-up menu. You may also export the list directly to MS Excel by choosing the Open List in MS Excel option.
Field & Button Definitions
- Sales Tax Code – The Sales Tax Code field is used to enter an abbreviation for the sales tax code. Common usage includes TAX for taxable sales, NON for nontaxable sales, CHU for church organizations, GOV for government agencies, LBR for labor only items, EXE for exempt sales, etc. This entry may be up to a three-character abbreviation to define and classify a tax codes.
- Description – A short explanation of the code. This field may be up to twenty (20) characters in length.
- Apply Sales Tax To This Tax Code – When this option is checked, the tax code will calculate sales tax for the tax item selected. When the option is not checked, the tax code is considered nontaxable.
- Inactive – Check this option to inactivate the sales tax code.
- OK – This button saves the information and closes the form.
- Cancel – This button closes the form without saving.
- Next – This button will save the current tax code and start a new blank form for entry.