Tax Setup
Last Modified on 11/07/2024 7:00 am PST
This article provides tax setup information and covers the following screens in Navusoft: Tax Setup, Tax Region, and Tax Rate.
Tax Setup
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/sites and must be added to a Tax Region for application.
Permission
The following permission is required to view and edit in the Tax Setup screen:
| Permission ID | Permission Name |
| 22 | Setup \ Accounting |
Tax Setup Field Descriptions
| Fields | Descriptions |
ID
| The ID of the Tax.
|
Name
| The Name of the Tax.
|
Type
| Identifies how the tax rate is calculated during billing. Taxes can be a percentage, flat rate or per unit rate.
|
GL Account
| Displays a list of available GL accounts. If a tax should be tracked under a specific GL account, select it here.
|
Level
| Select the level the tax is identified with. - Franchise Fee
- Tax
- Tax (on Tax)
|
Taxable
| Controls if the tax will be applied.
|
| Admin Area | Select the state administration that this tax applies too.
|
| Tax Authority Type | Indicates the geographic or administrative regions the tax is specific to.
|
| Tax Authority Code | Code that is used by the Tax Region for tax verification purposes.
|
Add a Tax
- Click the green + icon to open the Add Tax editor.
- Complete the following required fields:
- Enter an ID for the tax.
- Enter a Name for the tax.
- Complete additional fields based on your company's tax setup requirements.
- Click Save when finished.
Tax Region
Pathway: Setup > Accounting > Tax Region
The Tax Region Setup feature 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. This screen also offers an optional setup for default tax regions, allowing you to define areas using an interactive perimeter mapping tool.
Add Tax Region Field Descriptions
| Field | Descriptions |
Tax Region ID
| The Tax Region ID.
|
Name
| The name of the Tax Region that displays in the Tax Region drop down when an account/site is added or edited. |
Active
| Controls if the tax region is available for selection in the Tax Region drop down field.
|
| Map Area (Icon) | Establishes default tax regions that will be applied when a new account or site is created that falls within the mapped perimeter. |
Setup: Add Tax Region
- Click the green + to to open the Add Tax Region tool.
- Enter the Tax Region ID.
- Enter a Name for the Tax Region
- Select the Active status for the Tax Region.
- Click Save when finished.
Create Default Tax Region Settings (Map)
An optional setting enables the creation of default tax regions through an interactive map. These tax regions are automatically applied when a new account or site is created within the defined perimeter boundary.
Configuration
To configure, click the tax region icon to open the 'Map Area' popup window. Use the perimeter tool within the map to define boundaries around the tax region. Once a perimeter is set, the tax region icon will display in green. Multiple perimeters can be defined for a single tax region.
Tax Rate
Pathway: Setup > Accounting > Tax Region > Tax Rate (tab)
After a Tax Region has been created, use the Tax Rate tab to add each tax it should include at a rate that applies.
Add/Edit Tax Rate Field Descriptions
| Fields | Descriptions |
Tax Region
| Identifies the region the tax is for.
|
Tax
| Identifies the tax assigned to the tax region.
|
Effective Date
| Indicates the start date the tax is applicable. If an account is billed on a date that is before the taxes start date, the tax will not be applied. |
Rate
| Identifies the rate at which the account/site will be taxed.
|
Setup: Tax Rate
- Select the Tax Region you would like to add a tax to.
- Click the green + to open the Add/Edit Tax Rate Window.
- Select which Tax you would like to add to the Tax Region.
- Enter the Start Date the tax becomes applicable.
- Enter the Rate accounts will be taxed at for the tax.
- Click Save when finished.
