Enable Tax Auditing and Enter Default Settings

Use Accounting Company Settings to enable the Tax Auditing feature and enter default settings for it.

To turn on Tax Auditing and enter default tax information:

1. From the Navigation menu, click Settings > Accounting > Company .
2. On the Accounting Company Settings form, click the Tax Auditing tab.
3. Select the Enable Tax Auditing Feature check box, and click Save. Before you can select default tax codes on this tab, you must enter input tax codes in Tax Codes Setup. You cannot enter the input tax codes in Tax Codes Setup until you select the Enable Tax Auditing Feature check box on this tab. The next steps in these instructions direct you to Tax Codes Setup to set up input tax codes.
4. Close the Accounting Company Settings form and, from the Navigation menu, click Settings > Accounting > Taxes.
5. On the Tax Codes tab, enter and save new tax codes to use for input taxes. For the tax code to display in the drop-down list in the Default Tax Codes grid on the Tax Auditing tab in Accounting Company Settings, you must make the following entries for the tax code on the Tax Codes tab:
   • In the Status field, select Active.
   • In the Inputs section:
     • Select the Transaction Entry check box, the Employee Expenses check box, or both.
     • In the Account field, enter the general ledger account for the input tax (typically a debit account). If the input account is missing, you will not be able to post transactions.
6. Return to the Tax Auditing tab in Settings > Accounting > Company.
7. In the Default Tax Codes grid, enter default tax codes.
8. When you finish click Save.