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2. Tax Setup

Enter Tax Zones

Tax zones are geographic areas that have a specific tax jurisdiction. They are a key component of the tax assignment.

  • Enter tax zones for the geographical areas where you do business.

Enter Tax Types

Tax types provide a system for classifying goods and services into taxable categories. For example, using the Item master you can associate an item with a particular tax type.

  • The Quickstart database includes several system-defined tax type.

  • Review but do not edit pre-loaded tax types.

  • Select NEW to enter additional tax types.

Enter Tax Codes

Tax codes define the amount and type(s) of tax to be added to an order.

  • Enter tax code.

  • Map to appropriate G/L account.

  • Create tax rates.

Enter Tax Assignments

Tax assignments create a matrix used to find the tax codes to apply to an item given the item's tax type and the tax zone with jurisdiction over the transaction. Nested tax codes, whose calculations are based on other tax codes, are shown as indented.

  • Create new tax assignments by selecting new then entering tax zone and tax type.

Enter Tax Classes (Optional)

Tax authorities are any entities legally-authorized to collect taxes—for example, city, county, state or federal government agencies.

  • Enter tax class name (i.e., code), description, and group sequence.

Enter Tax Authorities (optional)

Tax authorities are any entities legally-authorized to collect taxes—for example, city, county, state or federal government agencies.

  • Input tax authority.

  • Select currency.

  • Map to the appropriate G/L account.

Enter Tax Registrations (Optional)

Tax registrations are the numbers used by tax authorities to identify businesses and/or individuals. An employer identification number (EIN) is an example of a tax registration number.

  • Select tax zone and tax authority.

  • Enter registration number.

  • Set effectivity.

Additional Tax Information:
  • Comprehensive documentation related to tax basics is available.

  • Pre-printed 1099 forms can be purchased on the xTuple xChange.