Step 2. Defining tax rates

Define tax rates to build the second level of tax coding. Before creating a tax rate, create tax rate types on the Tax Rate Type form.

Create a tax rate, such as "SC TAX" to represent a South Carolina state tax, and then associate that tax rate with a tax rate type, such as a sales or excise tax rate type. The combination of a tax rate type and a tax rate represent the definition of a tax rate code. You can also indicate whether to include the tax rate code in stock valuation.

To define tax rates:

  1. Open the Tax Rates form.
  2. Click New Record.
  3. Tax Rate—Enter a unique code identifying the tax rate, and then enter a description of the tax rate in the adjacent field.
  4. Type—Enter the type of tax rate.
  5. Include Part Taxes in Stock Value—Select to include tax in inventory calculations of stock value.
  6. Include Service Taxes in WO Cost—Select to include tax in service calculations of work order costs.
  7. Click Save Record.