Tax Setup
Last Modified on 05/26/2026 9:57 am PDT
Pathway: Setup > Accounting > Tax
Tax Setup identifies the taxes (City, State, Franchise, etc) that are applicable to accounts. Taxes added here are not individually assigned to accounts and sites, instead, they must be added to a Tax Region or a Tax Class for application.
Tax Region - A Tax Region is a location-based tax applied to a site based on its address. These typically include state and local taxes the site is subject to.
Tax Class - A Tax Class groups together taxes that can be applied to service codes, charge codes, and services, such as taxes on labor or equipment.
Field Descriptions
| Fields |
Descriptions |
ID
|
The unique ID for the Tax.
|
Name
|
The Name of the Tax.
|
Type
|
The tax type used for calculations during billing. Taxes can be a percentage, flat rate or per unit rate.
|
GL Account
|
The GL Account that the tax is tracked under. This is selected from a list of available GL accounts.
For more information, check out GL Account Setup and GL Segmentation Setup
|
Level
|
The level the tax is identified with. - Franchise Fee
- Tax
- Tax (on Tax)
|
Taxable
|
Controls if the tax will be applied.
|
| Admin Area |
The state administration that this tax applies too.
|
| Tax Authority Type |
The geographic or administrative regions the tax is specific to.
|
| Tax Authority Code |
The code that is used by the Tax Region for tax verification purposes.
|
Add/Edit a Tax
Follow the simple process outlined here to create a new tax or modify an existing one.
To Add
- Click the green + icon to open the Create Tax popup.
- Enter the Required fields:
- A unique ID to identify the tax.
- A descriptive Name for the tax.
- Check the Default values and change, if needed.
- Complete additional fields based on your company's tax setup requirements.
- Click Save when finished.
To Edit
- Double click on the Tax row to open the Update Tax editor.
- Make changes, as needed. The system auto-saves as values are changed.
Application of Use
Creating a Tax does not actually cause it to be applied to anything. Once created, the tax must be added to a tax region or tax class for it to be applied. This required next step is critical for taxes to be included when an account/site is billed.
Tax Region
Pathway: Setup > Accounting > Tax Region
The Tax Region Setup screen defines geographic areas where specific tax sets apply. When a tax region is assigned to an account or site, the associated taxes are automatically applied during billing. A Tax Region may have one or more applicable tax rates. These are applied in the lower grid and is where the Taxes set up in the Tax Setup screen come into play.
When adding a new Tax Rate, the tax options provided in the Tax field are those created in the Tax Setup screen. Detailed information including setup can be reviewed here: Tax Region Setup.
Tax Class
Pathway: Setup > Accounting > Tax Class
A Tax Class is a container that groups together multiple taxes that can be applied to services. Once created, you can add taxes to the class and assign it to service codes, charge codes and surcharges. Further information including setup can be reviewed here: Tax Class.
Permission
The following permission is required to view and edit in the Tax Setup screen:
| Permission ID |
Permission Name |
| 22 |
Setup \ Accounting |
Database Query Mapping
Pathway: Database > Database Query
To explore how taxes are defined and applied, you should primarily query the Tax Details entity. Here is the breakdown of the specific entities and fields that will give you this visibility.
Entity: Tax Details - for auditing how taxes are calculated. It allows you to see the "why" behind the tax amounts on an invoice.
Tax Authority Type Name the different "levels" of tax (e.g., State, County, City, or Special District)Tax Name the specific name of the taxTaxablerevenue the portion of the invoice that was subject to taxTaxexempt a flag that tells you if a specific line item or site was treated as non-taxableTaxes the actual dollar amount of tax calculated for that specific authorityTax Authority Code the specific ID used for reporting to government agencies
When using the Tax Details entity, you can join it to the Revenue enitity (using Invoiceid) or Accounts and Sites (using Accountid) to see which specific services or customer types are driving your tax liabilities. This is the best way to audit if your "Commercial" vs "Residential" tax rules are being applied correctly.
Entity: Accounts and Sites - for customer tax setup and exemptions
Site Tax Region Name the tax jurisdiction assigned to the physical service locationSite Tax Exempt Id / Site Tax Exempt Reason the legal reason why a customer isn't paying taxes
Related Articles
Tax Region Setup
Tax Class Setup
