Add or Edit a Sales Tax Code

Sales Tax Codes gives your organization the ability to track the sales tax a municipality must pay on the goods purchased. If vendors do not add sales tax to their invoices, a municipality may still be responsible for paying the appropriate tax to the collecting entity (local or city, county , or state).

The Sales Tax page allows authorized users to create tax codes that are used when an organization purchases items.

To add or edit a sales tax code, follow the steps below:

Note: If while updating a sales tax code you need to clear your changes, click Reset at any time to return to the previous state the page was in before you save your changes.

  1. Go to Maintenance > new world ERP Suite > Miscellaneous Definitions > Sales Taxes.
  2. To add a new sales tax code, click New. To edit or copy an existing code, click the Tax Code hyperlink to open the record.
  3. Select the Active check box if the sales tax code is active.
  4. In Tax Type, select the type of sales tax code being defined. All tax codes are selected by default. The combination of Tax Type and Tax Code must be unique.
  5. In Tax Code, type an alphanumeric code that uniquely identifies the sales tax code. The code can contain up to 16 characters; there are no character restrictions.
  6. In Description, type a textual description of the tax code. The description can contain up to 32 characters; there are no character restrictions.
  7. The Effective Date displays the effective date of the sales tax code. This field is disabled when you are adding a sales tax code. Show more:Closed Click the Move Previous button to display the previous effective date in the drop-down. Click the Move Next button to display the next effective date in the drop-down. Click the Move First button to display the first effective date listed in the drop-down. Click the Move Last button to display the last effective date listed in the drop-down.
  8. In Start Date enter or select the date on which the sales tax code goes into effect.
  9. In Tax Percentage, enter the percentage of tax that will be assessed when this tax code is used. The number must be between 0.01% and 999.99%.
  10. In Maximum Amount, enter the maximum dollar amount that can be assessed using the tax code. The amount must be a number between $0.00 and $999,999,999.99.
  1. In Method, select the level to which the sales tax is distributed in the financial system (e.g., by line item, organization, or general ledger account). The default is Line Item. The available options are Line Item, Organization, and G/L Account.
    • If Method is Line Item, the Account and G/L Account fields are disabled.
    • If Method is Organization, the Account field is required and the G/L Account field is disabled.
    • If Method is G/L Account, the G/L Account field is required and the Account field is disabled.

    After a value is selected, the appropriate fields are displayed under the Method field. When a different method is selected, the Account or G/L Account fields are hidden or changed to the appropriate field for the value selected in the Method field.

  1. In Account, select the combined base and detail account number to which to apply the sales tax. It is required and visible if Method is Organization; otherwise, it is hidden.
  2. In G/L Account, select the full general ledger account number to which to charge the sales tax. It is required and visible if Method is G/L Account; otherwise, it is hidden.
  1. Click Save to save the sales tax code or Save/New to save the record and create another sales tax code on the same page without having to return to the list page.

Click Delete to delete the sales tax code if it is not being used in the system. 

The Delete button is hidden or disabled if you do not have the appropriate security permissions. If you are authorized, when you click Delete you are prompted to confirm the deletion.

You may need to create different effective dates for various sales tax codes to be used by your organization. If an effective date exists, you can copy an existing date and create another effective date with different sales tax rates.

  1. Select a date in the Effective Date list and click Copy.
  2. In the Copy Effective Date window, enter or select a New Effective Date and click OK.
  3. Update the Sales Tax and Distribution Method as needed.
  4. Click Save.
See Also

Sales Tax List

Revenue Defaults Sales Tax

Vendor Setup