Sales Tax Report - Grouping Tax Codes and Totals

Overview

The Sales Tax Report now includes new grouping codes and report features that allow you to organize and view tax rates by state or other criteria. This enhancement makes it easier to manage multi-jurisdiction tax reporting.

What Are Tax Grouping Codes?

Tax Grouping Codes allow you to 'group' tax rates by:

• State
• Region
• County
• Or any other criteria that fits your business needs

This grouping makes it easier to generate summarized tax reports across multiple tax jurisdictions.

How to Add a Tax Grouping Code

Accessing the Tax Table

Option 1: File > Set Up Wizard > Tax Table

Option 2: Utilities > Manage Lists > Invoice (Tab) > Tax Rates

Adding or Editing Tax Codes

Step 1: Click Insert (for new tax code) or Edit (for existing tax code)

Step 2: At the bottom of the Tax Table Entry window, locate the Grouping Code field

Step 3: Enter the code you would like to use (Example: NEW JERSEY)

Step 4: Save the tax code

Repeat this process for all tax codes you want to include in the same group.

Running the Sales Tax Report with Grouping

Step 1: Run the Sales Tax report by Revenue or Receipts

Step 2: Enter the date range

Step 3: Select the sort filter of either:

• Grouping - Sort and total by grouping codes
• County - Sort and total by county

Understanding the Report Display

The report uses color coding to distinguish between different totals:

County Totals: Displayed in BLUE

Group Totals: Displayed in GREEN

This visual distinction makes it easy to quickly identify subtotals at both the county and group levels.

Benefits

Simplified State Reporting

• Group all counties/jurisdictions within a state
• See state-level totals automatically

Multi-Jurisdiction Management

• Organize tax codes logically
• Reduce manual calculations for reporting

Flexible Organization

• Group by state, region, or custom criteria
• Adapt to your specific reporting requirements

Visual Clarity

• Color-coded totals for easy reading
• Quick identification of county vs. group totals

Common Use Cases

State-Level Tax Reporting

Group all tax jurisdictions within a state (e.g., "NEW JERSEY") to get automatic state totals.

Regional Reporting

Create regional grouping codes (e.g., "NORTHEAST", "MIDWEST") for regional analysis.

Tax Authority Grouping

Group by specific tax authorities or districts that require consolidated reporting.

Multi-State Operations

Separate tax codes by state for businesses operating in multiple states.

Best Practices

1. Consistent Naming: Use consistent grouping code names (e.g., full state names)
2. Plan Your Groups: Decide on grouping strategy before entering codes
3. Document Groups: Keep a reference list of which tax codes belong to which groups
4. Test Reports: Run test reports after setting up grouping codes to verify accuracy
5. Update Regularly: Add grouping codes to new tax rates as they're created

Example Setup

Scenario: Multi-county business in New Jersey

Tax Codes:

• Bergen County - Grouping Code: NEW JERSEY
• Essex County - Grouping Code: NEW JERSEY
• Hudson County - Grouping Code: NEW JERSEY

Result: When running the report with "Grouping" sort:

• Individual county totals shown in blue
• NEW JERSEY group total shown in green

Tips for Effective Tax Grouping

• Use grouping codes that match how you need to file tax returns
• Consider future reporting needs when creating groups
• Keep grouping codes simple and descriptive
• Review and update grouping codes annually

Need Help?

Still have questions? Contact Cornerstone Holding Co. 847-405-9517 or email us customer.success@alarmbills.com