Managing Your Tax Table

Overview

The Tax Table is one of the most important areas of the software and must be set up correctly. It determines the tax rates that will be billed to your clients and is also used to generate the Tax Report, which you will need to print on a periodic basis.

You will need to enter a tax code for every tax rate you will be charging, as well as the appropriate tax rate. You may also enter the GL Code associated with that tax rate, as well as the municipality tax rates within that code (State, City, Local, etc.).

This article walks you through two ways to access and configure your Tax Table: via the Setup Wizard and via the Utility Menu.

⚠️ IMPORTANT

It is important to avoid deleting or modifying tax codes once they have started being used for billing. Tax Rates may always be changed at any time by simply changing the rate associated with the tax code.

Method 1: Setting Up the Tax Table via the Setup Wizard

The Setup Wizard provides a guided introduction to the Tax Table and allows you to begin adding tax codes during initial system configuration.

1. Open the Setup Wizard from your software's main menu.
2. Click the Tax Table tab at the top of the Setup Wizard window.
3. Review the Setup Tax Table introduction screen, which explains the purpose and importance of the Tax Table.
4. Click the "Setup Tax Table" button to proceed and begin entering your tax codes.
   
   

Method 2: Accessing the Tax Table via the Utility Menu

After initial setup, you can access and manage the Tax Table at any time through the Utility Menu.

1. Open the Utility Menu from your software's main navigation.
2. Click the Invoice tab across the top navigation tabs (note: this tab is marked as Supervisor Only and requires the Miscellaneous Tab on the Security Screen to be enabled).
3. Select "Tax Rates" from the options listed under the Invoice tab.
   
   

Adding a New Tax Code

Once you are in the Tax Table, the Tax Table Entry window will allow you to create and configure each tax code. Follow the steps below to complete a new entry.

Step 1: Enter the Tax Code

In the Tax Code field, enter a unique code to identify this tax rate. This code will be used throughout the system to associate tax rates with customer accounts and invoices.

Step 2: Enter the Tax Rate

In the Tax Rate field, enter the applicable tax rate that corresponds to this tax code. This is the rate that will be billed to clients assigned to this code.

Step 3: Enter the GL Code

In the GL Code field, enter or look up the General Ledger code associated with this tax rate. The default value shown is TAX. You can use the search icon (?) to look up available GL codes.

Step 4: Enter Municipality Breakdown (Optional)

The Tax Municipality Breakdown section is optional and is used for the Sales Tax report only. It allows you to break down the total tax rate into its individual municipal components. For each applicable municipality, enter the Municipal Name and the corresponding Municipal Tax Rate.

Step 5: Set Inactive Status and Grouping Code (If Applicable)

If this tax code should no longer be available for use, check the Inactive? checkbox. You may also enter a Grouping Code in the field provided if your organization uses grouping to categorise tax codes.

Step 6: Save the Tax Code Entry

Once all required fields have been completed, click OK to save the tax code entry. Click Cancel to discard any changes and close the Tax Table Entry window without saving.

Need Additional Help?

Our Customer Success team is here to assist you.

Phone: 847-405-9517 x1
Email: customer.success@alarmbills.com

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