54.3 Set Up Sales Tax Codes

Select Sales Tax Rates from the Select, Accounts Receivable menu. The screen is shown below:


If your company has several locations, all with different sales tax rates enter a separate record for each locality.

In addition to the sales tax locality code, you must also enter the full name of the locality the code references and the tax rate of the locality. The sales tax rate is entered as a percentage or rate applicable to the locality. For example, a tax rate of .078 is entered as 7.8.

You must also enter a general ledger account that represents the liability for collected taxes. This is your Sales Tax Accrual Account. When an invoice is stored the tax amount on the invoice is accumulated into this general ledger account.