Order of setup for the American Version
If you have registered Dimensions with an American Version unlock key, modules, prompts and field names will be changed to reflect American language variations. See also the System Control VAT topic.
Order of setup
The Tax Rate window is described in the Tax (American Version), but you will find it helpful to follow this order of processing when setting up your tax rates.
On the Tax Rate window, use the Define Headings window to label the Tax Rate makeup fields. See Tax (American Version)
Create all the Tax Rates records you will require, selecting the Tax Type to ensure that it is easy to select the correct Tax Code when entering transactions.
Make sure that the Rate Makeup is correct for each Tax Code.
Review all your Vendor accounts and flag as 1099 required if this is appropriate.
If possible, on a test database or a copy of your live database, enter some trial transactions and print the reports to screen so that you can see how each transaction is reported.
Tax Type
When you create a Tax Rate you can select a Tax Type from the General menu. You should select the type that is appropriate to the use of the code.
The options are:
Sales Invoice (SL.Inv.)
Sales Credit Note (SL.Cr.Note)
Purchase Invoice (PL.Inv)
Purchase Credit Note (PL.Cr.Note)
General
If you do not select a Tax Type, the menu will default to General.
The Tax Type restricts how the Tax Rate can be used.
For example, Tax Rates of the type SL.Inv can be used only for Sale Ledger Invoice transactions and cannot be used for Sale Ledger Credit Notes or Purchase Ledger Invoices or Credit notes.
Tax Rates of the type General can be used for any transactions.
Show Rate Makeup
All the Tax Rates can be broken down further using the Show Rate Makeup option.
Each Tax Rate can be split between 6 sub types by entering the % appropriate to each sub type.
Initially the rate will be allocated to the first sub type, State Tax.
The names of the sub types can be changed using the Define Headings window.
For every transaction entered, the tax will be recorded against the Tax Rate selected on the transaction and, when reported, will be split according to the Rate Makeup.
For Example:
Tax Code =HS01 and Tax Type = SL.Inv
Tax Makeup: State Tax = 20%; County Tax 15%; Total Rate = 35%