MANAGE TAXABLE SALES ACCOUNTS

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 on the Manage Sales or Value Added Taxes screen.) When you calculate billings, Costpoint 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 on the Manage Project Sales Tax Setups screen, 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 on the Manage Sales or Value Added Taxes screen.

To set up sales tax for billing, perform the following steps:

  1. On the Manage Sales or Value Added Taxes screen, establish the sales tax code. Enter the tax account and tax rate.

  2. On the Manage Taxable Sales Accounts screen, set up the taxable sales accounts (accounts to which sales tax is applied).  

  3. On the Manage Project Sales Tax Setups screen link the sales tax code to the appropriate projects.

After you initialize these screens, sales tax is computed on the appropriate project\account combinations when you compute the invoice.

Location

Identification

Sales Tax Code

Click 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 Manage Sales or Value Added Taxes screen.

Description

This non-editable field displays the sales tax code description.

Table Window

Account

Enter, or click 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 could probably set up multiple "Materials" accounts; that is, set up "0653-001" for "Materials - Maryland," "0653-002" for "Materials - Washington, D.C.," "0653-003" for "Materials - Virginia," and so on. Then you would assign only accounts set up for a specific state to that state's sales tax code in this screen.