Field

Description/Activity

Code, Name

Define a code and a name for the tax code.

Rate

Displays the rate of the tax code according the definitions made in the table rows. This field is not editable.

Expenses

Select this box have the tax calculated for the additional expenses also.

Valid for AR, AP

Select the box(ex) to indicate whether the tax code is subject for A/R postings, A/P postings or both. You must choose at least one of the boxes.

Type

Choose the required tax type from the drop down list. To define more tax types go to Administration ® Definitions ® Financials ® Tax ® Define Tax Categories.

Code, Name

Choose the required tax code. Press Tab to open the choose from list window. The name of the chosen tax code automatically appears in the field name.

Tax on Tax

Choose whether to define a tax on tax calculation, and define the calculation method by choosing from the drop down list the tax code which should be the base of the tax on tax calculation.

Rate

Displays the tax rate of the tax code in percentage

Effective Rate

Displays the rate of the tax code considering the tax on tax calculation. If the user did not define tax on tax calculation, the effective rate and the rate are identical.

A/R Tax Account, A/P Tax Account

These fields display G/L accounts defined in the Define Tax Type Window for A/P and A/R tax postings.

Non Deductible %

Displays the non deductible tax percentage defined for the tax code.

Non Deductible Account

Displays the non deductible tax account defined for the tax code.

Deferred Tax Account

Displays the G/L account defined for the tax code, that used for deferred tax transactions.