TAXABLE SALES ACCOUNT

Use this screen to define which accounts should be included in the tax base for calculation of sales or VAT tax. (You can set up sales and VAT tax codes in the Maintain Sales/Value Added Tax screen (click Others»System Administration»System Codes).) When you calculate billings, the system applies sales or VAT tax only to amounts charged to the accounts you have specified here. Note that you must also assign each applicable sales tax code to your invoice projects in the Project Sales Tax Setup screen (click Projects»Billing»Billing Master), in order for sales tax to be calculated on billings.

You must assign taxable accounts to sales tax codes before you calculate project billings, if you want automatic calculation of sales tax. You must first set up the necessary sales tax codes in the Maintain Sales/Value Added Tax screen.

Sales Tax Code

Use Query to select a valid sales or VAT tax code for which you want to set up a taxable account. You can set up sales and VAT tax codes the Maintain Sales/Value Added Tax screen in Costpoint System Administration. Once you select a tax code, the description for that code is displayed in the field below.

Table Window

Account

Enter, or use to select, a valid account to which this sales tax should be applied when billings are calculated.

Description

This field displays the description for the selected account.

If your billings combine costs that are taxable in different states, you probably need to set up different cost accounts to properly track the costs that are taxable for each individual state. For example, if you use account "0653" for "Materials," and materials need to be billed using different sales tax rates, you should probably set up multiple "Materials" accounts; i.e., set up "0653-001" for "Materials - Maryland," "0653-002" for "Materials - Washington, D.C.," "0653-003" for "Materials - Virginia," etc. Then you would assign only accounts set up for a specific state to that state's sales tax code in this screen.

Table Information

Changes to this screen update the BL_SALES_TAX_ACCT table.