Taxes and Exemptions

System Maintenance Menu -> Configure System Settings -> Accounting Tab -> Rental Product Classes / Sales Product Classes / Services -> Taxes and Exemptions

Accounts Receivable Menu -> Customer Information / Customer Site Information -> Codes window -> Tax Exemptions window -> Taxes Exemptions

Accounts Receivable Menu -> Account Adjustments -> A/R Invoices -> Tax window -> Taxes and Exemptions

Counter Menu / Order Entry Menu -> Customer Documents -> Tax window -> Taxes and Exemptions

Document Search windows -> Resulting Document List -> DETAILS button -> Expanded Details -> Tax window -> Taxes and Exemptions

This utility can be used to set taxes with the tax exemptions.
It applies only to the Enhanced Tax processing, as activated in the Company Taxing Parameters.
The Tax Exemption window is triggered when defining tax and exemptions for GEOCodes, divisions, cities, Postal/Zip, customers, sites, product classes, services, and also when reviewing tax exemptions on the document.

• The ability to change the Tax Codes is controlled by operator permission setup in Security Role Permissions.
  If an operator does NOT have role permission to change taxes, this window becomes view only.

• A flag in the Company Taxing Parameters can be set to cause all Site, Customer, and Division tax exemptions to be respected on the document.

• If your firm elects NOT to recognize all Site, Customer, and Division tax exemptions, the following exemption rules apply:

  • The site on the document is first checked for any exempt flags, as setup in Tax Exemptions By Site. If any site tax exemptions are identified the search for further exemptions ends, even if these exempted site tax codes do not apply to this document.
  • If there are no site exemptions, then exemptions for the customer on the document apply as setup in Tax Exemptions By Customer.
  • If there are no Site or customer exemption flags, divisional exemptions apply as determined by Tax Exemptions By Division.

  Note: Tax Exemptions By Class and Tax Exemptions By Service exemptions apply regardless of Site, Customer, or Division exemptions.

Refer to Tax Maintenance Overview for Enhanced Tax Rules.

TAX EXEMPTIONS
Depending from where this window is triggered, it can be used to setup the relevant tax codes and exemptions, or it is information only if the operator does not have role permission to Change Tax Codes.
The prompts in the Exemption window are:

SEQ

The sequence number tracks the tax exemption records in the file.
Multiple tax exemption records can be recorded for each GEOCode, document, customer, site, division, class, or service.

CODE

Enter the Tax code or select it from the drop-down list as setup in Tax Codes.

Shortcut to set Tax codes & Exemptions:

If * (asterisk) is entered in the Code field in place of an actual tax code, tax codes with exemptions can be defined as outlined in Add Missing Tax Codes.
This utility is only offered for Sites, Customers, Divisions, Classes, and Services.

DESCRIPTION

The Tax code description displays.

EXEMPTIONS

Separate Exemption flags can be entered for each of Rentals, Sales, Services, and Damage Waiver, or the flags can be selected from the drop-down lists provided.
This data is reflected with the Tax details on the spreadsheet output of the Site Report and the Customer Discounts & Tax Status Report.

RENTALS

This field does not apply to Services.

Set the tax exemption flag that should apply to Rentals for this tax as follows:

• Leave this field blank if Rentals are not exempt from this tax.
• Type Y (YES) if Rentals are Exempt from this tax.
  
• Type O (Omit) to totally omit this tax for Rentals.
  On documents, the O option is only offered on the document header and if selected will cause this tax to be omitted on all rental details on this document.

SALES

This field does not apply to Services.

Set the tax exemption flag that should apply to Sales for this tax as follows:

• Leave this field blank if Sales are not exempt from this tax.
• Type Y (YES) if Sales are Exempt from this tax.
  
• Type O (Omit) to totally omit this tax for Sales.
  On documents, the O option is only offered on the document header and if selected will cause this tax to be omitted on all sales details on this document.

SERVICES

This field does not apply to Products or Classes.

Set the tax exemption flag that should apply to Services for this tax as follows:

• Leave this field blank if Services are not exempt from this tax.
• Type Y (YES) if Services are Exempt from this tax.
  
• Type O (Omit) to totally omit this tax for Services.
  On documents, the O option is only offered on the document header and if selected will cause this tax to be omitted on all services details on this document.

DMG WAIVER

This field does not apply to Products, Classes, or Services.

Set the tax exemption flag that should apply to Damage Waiver for this tax as follows:

• Leave this field blank if Damage Waiver is not exempt from this tax.
• Type Y (YES) if Damage Waiver is exempt from this tax.
  
• Type O (Omit) to totally omit this tax for Damage Waivers.

EXEMPT #

This field only applies to the customer and site exemptions.

Enter the tax exemption number if it is available.
This tax exemption number will print in the document comments when applied to Sales or Rental exemptions.

EXEMPT TYPE

This is a free format field to associate with this exemptions.

EXPIRY

This is an information date only which does not impact the calculation on the document.

Finished?

Click ACCEPT to accept or CANCEL to abort.

ACTIONS:
Additional actions to bulk load or bulk delete Tax Exemption records are provided by buttons on the Taxes and Exemptions setup screen when called from one of the following utilities:

• Add All Taxes & Set the Relevant Exemptions:
  The BULK ADD button can be used to add all Tax Codes to the target Tax Exemptions By XXXX (where XXXX is the currently accessed Site, Customer, Division, Class or Service record) and to define the default Exemption settings in the following example pop-up window:

  

  After setting the defaults click ACCEPT to populate this specific Tax Exemption table or CANCEL to abort.
  Individual Tax code records can be modified for this Site, Customer, Division, Class or Service as required.

  Note: The 'Exempt#', 'Exemption Type' and 'Expiry' values only apply to the Customer and to the Site tax records.

• Delete All Exemptions:
  The BULK DELETE button can be used to remove all the Tax Codes from the Tax Exemptions By XXXX (where XXXX is the Site, Customer, Division, Class or Service record).
  This is a useful cleanup tool.
  Confirmation is required.