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Tax Codes are configured in Setup / Finance / Taxes / Tax Codes |
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Account Tax Categories: account tax categories are useful when you need to tax accounts differently based on an account categorization scheme (e.g. residential, business). In order to apply taxes using account tax categories the account tax category must be set on one or more tax codes and accounts must be configured to be under the account tax category (Account > Overview > Settings > Taxes screen)
Service Tax Category: service tax categories are similar to account tax categories except that they are configured on services in the product catalog vs. being set at an account level. Service tax categories are also configured on tax codes in order to specify that the tax codes (and therefore the tax rates) are only applicable to a particular service or services
Contact Addresses: addresses on account contacts are evaluated when determining a tax code to use. Specifically, the service contact's address, followed by the billing contact's address (if the service contact address does not exist and the billing contact has been configured for taxation). The contact's address details are compared to location details in tax codes to find the best matching tax code to use
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Invoicer Accounts and Tax Settings Inheritance
Child accounts, like parent accounts, will determine the tax code to use based on their service/billing contact addresses and tax categories configured. If a child account does not have contact addresses configured, then the address of the parent account's service or billing contact will be evaluated to determine which tax code is applicable when attempting to apply taxes to a child account transactionAn account configured to invoice charges to another account (an invoicer) will have its own service/billing contact address referenced in order to determine the appropriate tax code to use for taxation, not the invoicer’s address details. However, In the event that the account does not contain service/billing addresses the system will then use the invoicer’s service/billing address to determine the tax code.
Prerequisites
Tax Codes can be setup as needed, there are no prerequisite configuration steps. However, for tax codes using the native (LogiSense) tax vendor tax rates need to be setup in order to apply taxes to transactions.
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The information in this panel reflects the currently selected tax code. From here you can change tax code details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).
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