Tax Items are individual Sales, Use and VAT Taxes set by various tax agencies. Each Tax Item is a separate tax that the company collects and must pay to the tax agency. The Tax Items table stores the individual taxes and is used by the system in certain transactions.
The Tax Items screen can be accessed from the Company Setup menu. The Integral Accounting Enterprise system comes shipped with basic Tax Items as a sample of Tax Items. During the Setup and Installation process, and as one of the items on the Setup Checklist, the Tax Item table must be reviewed and the Tax Items customized to meet the way your company does business.
The diagram to the left details the Sales Tax and VAT Tax Organization within the Integral Accounting Enterprise. It is recommended that this diagram be studied to understand the tax organization before entering taxes and transactions involving taxes.
To Add a New Tax Item:
To add a new tax item, from the Tax Items screen, click the New button. This will bring up a screen where you can enter the specific tax item.
Tax ID: Enter the Tax ID that will be used by the system in this field. For example, if the tax item you are setting up is VAT Sales Tax, then VAT Sales Tax would be used for the Tax ID.
Tax Description: Enter a brief description detailing the type of tax this is.
Tax Percent: Enter the percent of the sale for that is collected for tax.
GL Account: Select the GL Account from the drop down list that will be used to record the tax collected for this particular tax item.
NOTE: Each tax item must have it's own GL Account to properly record and classify tax collected in the system.
When you are finished entering the details for that particular tax, click OK to save the record. The record is saved and a blank screen appears where you can continue entering Tax Items. To return to the main Tax Items screen, click Cancel.
To Edit an Existing Tax Item:
Click the edit button (the pencil) next to the Tax Item you wish to edit. Make the necessary changes and click OK to save the record. Click Cancel to return to the main Tax Item Screen. To Delete an existing Tax Item, click the red X next to the Tax Item you wish to delete.