Create tax codes

1. Go to File>Customer>Tax.

   

2. Click New.
3. In the Tax Code box, type a new code or reference number for the Tax, and then press the Tab key. You can use any combination of alphanumeric and special characters.
4. In the Jurisdiction box, type a description of how the tax code will be used. For example, "Connecticut Sales Tax" or "New Hampshire Non-Taxable."
5. Decide how many tax columns you will need. Each tax column can represent a different, but related tax, such as Column 1=State Tax, Column 2=Country Tax, Column 3=Local tax. You can define up to 6. When calculating total tax on an order, Inform ERP will total all percents specified in each column.
6. In each Column, type the Sales TaxThe percent sales tax that will be applied to each sales order amount. percent and the General LedgerChoose the General Ledger account to which the tax should be posted. Depending on your company setup, this account may be a general Accounts Payable sales tax account, or you may choose to have individual GL accounts for each tax type. account number.
7. Under Tax Freight?, decide if and how you want to include freight charges in the tax calculation.
   You have the following choices:

   • No: No tax is charged on freight.
   • Yes: Tax is charged on the full freight amount.
   • Based on Product: If tax has been charged on one product in the order, it will be applied to freight amounts on the whole order.
   • Prorate: Charges a portion of the tax depending on how much product was taxable. For example, if your sales total was $100, of which $75 was taxable, then this option will apply tax to 75% of the freight charge.
8. In the Tax Cap box, type the maximum amount of tax that will be charged on an order, despite what the tax percent calculation is. For example, if regulations cap the tax at $25, but you have a $600 order with a 5% sales tax, then the tax percent calculation would be (600*.05)=30, but the tax charged would only be the cap of $25.
9. If you are taking advantage of Inform ERP's Sales Tax Automation, which is an add-on feature, then your sales tax data will be maintained for more than 11,000 country, city, and district jurisdictions. However, if you have a tax code that you need to maintain manually-not update automatically-then select the Suppress Service Update check box. The Sales Tax Automation will skip this code when applying updates.
10. If you require a non-taxable sales order to include a government issued tax exempt number, then select the Tax Exempt # Required check box.

1. Go to File>Customer>Tax.

   

2. In the Tax Code box, click the magnifying glass, and then click the tax code you want to update.

   

3. Click Edit.
4. Modify the terms as described in To create a tax code, above.
5. Click Save.

1. Go to File>Customer>Tax.
2. Click Report.

   

3. On the Field Selection pop-up that appears, you can choose which fields appear. Drag the fields into the Print Order area, and then click OK.
4. On the Print Document pop-up, click View.

   

Warning! Do not delete tax codes that have already been assigned to a customer or order. If you do, then you must update the customer with new tax codes, or you must assign tax each time you enter a sales order for this customer. All historical information about these tax codes will be saved.

1. Go to File>Customer>Tax.
2. In the Tax Code box, click the magnifying glass, and then click the tax code you want to delete.
3. Click Edit.

   

4. Once the tax code is in edit mode, click the Delete button.
5. On the confirmation message that appears, click OK.