Taxes Settings

Taxes settings are used to calculate taxes throughout DPS.

Taxes can be applied to:

• Invoices entered in the Billing application
• Accounts payable vouchers, accounts payable disbursements, employee expenses, cash disbursements, cash receipts, invoices, and journal entries in the Transaction Center
• Expense reports in the Expense application
• Purchase orders entered in the Purchasing application

Taxes settings determine the following:

• How the tax is calculated
• Whether the tax is active or inactive
• Whether the tax can be used as an output tax, input tax, or both
• Limits for overriding tax code rates during transaction entry in the Transaction Center
• The non-recoverable tax percentage
• Which intercompany billing transactions the tax applies to, if you have multiple companies and perform intercompany billing

You can modify tax code data at any time. To change the tax code ID, you must use the Key Conversions utility.

If you have multiple companies, you must set up tax codes for each company.