On this page, you will find a detailed and comprehensive overview of the “Tax Types” page, its features, how to access it, and an explanation of how to add, edit, and delete tax types.
To access the “Tax Types” page, please follow the instructions below:
- Start by clicking on the “Settings” menu in the main menu.
- Then, click on “Financial” available in the top bar of the page.
- You will be directed to the “Tax Types” page, which displays all types of taxes saved in the system.
Features and Uses of the “Tax Types” Page:
- Adding Tax Types: You can add an unlimited number of tax types to use them in various contexts within the system.
- Linking Each Type to a Custom Tax Rate: For each tax type you add, you can link it to a specific tax rate to fit your requirements. You can also set this rate to be zero if tax exemption is applicable.
- Customizing Tax Types for Specific Items: You can customize a specific tax type for a particular item or product. This is useful for items that have different tax rates than the general rate.
- Customizing Tax Types for Customers or Suppliers: You can also customize a specific tax type for a specific customer or supplier. This applies to individuals or entities that have different tax rates applied to them.
- Creating a General Ledger Account for Each Tax Type: You can create a general ledger account for each tax type. The same account cannot be used for more than one type. You can also create separate accounts for each type, one for sales tax and another for purchase tax.
- Editing Tax Type Data: You can edit all tax type data, such as name, rate, and associated accounts, to ensure it fits your business requirements.
- Deleting Unlinked Tax Types from a Tax Group: You can delete any tax type that is not linked to a specific tax group and has no transactions associated with it.
By using the Tax Types page, you can efficiently organize and customize your taxes according to your business needs.
Explanation of How to Add a “New Tax Type”:
- Description: In this field, you are required to add a clear description representing the new tax type you want to add. This description will be displayed to users when creating documents to ensure a proper understanding of the tax.
- Default Rate: Here, you are required to specify the percentage for this tax type. This rate will be used as the default tax rate when creating documents, but it can be adjusted later if necessary.
- Sales General Ledger Account: In this field, you are asked to specify the general ledger account associated with the sales tax. This account is used to record transactions related to sales tax, and accounts for sales tax documents must be set up accordingly.
- Purchase General Ledger Account: Similarly, in this field, you are asked to specify the general ledger account associated with the purchase tax. This account is used to record transactions related to purchase tax, and accounts for purchase tax documents must be set up accordingly.
After filling in all the required details, click the “Add New Record” button or its equivalent in the system. The new tax type will be successfully added to the system.