Currency/Sales Tax Setup |
The Currency/Sales Tax Setup tab enables you to specify the currencies used by the application and specify how sales tax is computed.
The fields in the Options section of this tab define how sales tax is computed. Unless otherwise indicated, these fields are required.
Base currency ID
Identifier of the application-wide base currency for all cost fields. When you order or receive items, the application converts foreign prices to the application's base (usually local) currency and rounds the amount to the nearest lowest monetary unit (e.g., United States = cent).
If a different currency is specified in the User currency ID field on the Basic Info tab of the System Mgmt -> Setup -> Access Rights -> Users screen, the application converts this base currency to the currency of the logged-on user.
Important: Do not update the information in this field after you post charges. Doing so may have adverse consequences on the data displayed on the Data -> Equipment Units -> Historical Costs screen.
Sales tax rate
Sales tax rate, as a percentage, used to compute sales tax to add to parts received and commercial labor and parts charged to work orders. This field supports two digits to the left of the decimal and four digits to the right.
Example: For a 6½% tax, this field specifies 6.5000.
This rate is used only if the Compute sales tax by vendor field specifies that sales tax not be computed by vendor.
Compute sales tax by vendor
If this field has a check and the organization does business with vendors that have different sales tax percentages, sales tax is computed individually for each vendor. Each vendor should have a rate in the Sales tax rate field of the Basic Info tab on the Data -> Setup -> Organization Structure -> Vendors -> Primary Information screen.
If this field is blank, all vendors use the same sales tax percentage and there should be a rate in the Sales tax rate field.
Sales tax computed automatically for
Several screens include fields that indicate whether sales tax should be added to the cost of commercial labor, parts, or miscellaneous charges or parts receipts. The following fields specify the default values for these fields, which you may change at any time.
Commercial labor
Commercial labor is labor performed by companies outside the organization.
If this field has a check, then the Add sales tax field for commercial labor charges is checked by default on all applicable screens. Unless a user clears the field on an individual entry, sales tax is added to the price of commercial labor charges before appropriate markups are added to the charges.
If this field is blank, then the Add sales tax field for commercial labor charges is left blank by default on all applicable screens. Sales tax is not added to the price of commercial labor charges.
Commercial parts
Commercial parts are parts sold to companies outside the organization.
If this field has a check, then the Add sales tax field for commercial parts is checked by default on all applicable screens. Unless a user clears the field on an individual entry, sales tax is added to the price of commercial parts before appropriate markups are added to the charges.
If this field is blank, then the Add sales tax field for commercial parts is left blank by default on all applicable screens. Sales tax is not added to the commercial parts charges. You can use this screen to permanently change the default value at any time.
Commercial misc
Miscellaneous costs charged by companies outside the organization.
If this field has a check, then the Add sales tax field for miscellaneous commercial costs is checked by default on all applicable screens. Unless a user clears the field on an individual entry, sales tax is added to the price of commercial items before appropriate markups are added to the charges.
If this field is blank, then the Add sales tax field for miscellaneous commercial costs is left blank by default on all applicable screens. Sales tax is not added to commercial costs. You can use this screen to permanently change the default value at any time.
Parts receipts
Default value for the Add sales tax field on the Receipts tab of the Data -> Parts Activity -> Receipts screen.
If this field has a check, then the Add sales tax field for parts receipts is checked by default on all applicable screens. Unless you clear the field on an individual entry, sales tax is added to the cost of parts received before appropriate markups are added to the charges. Parts are then added to inventory records.
If this field is blank, then the Add sales tax field for parts receipts is left blank by default on all applicable screens. Sales tax is not added to the costs of parts received.
Important: If you place a check in this field and the Sales tax added by location for Parts field, sales tax will be added when you receive your parts and then again when you post your parts to work orders.
Tax registration ID
If there is a check in the Require tax code ID field, this field contains the organization's Canadian Goods and Services Tax (GST) registration number. This field is optional.
Require tax code ID
If this field has a check, it activates the Special Tax feature, which computes the Canadian Goods and Services tax and Provincial Sales tax on labor and parts charged to work orders. A tax code ID is required in Tax code ID fields.
The Data -> Setup -> Organization Structure -> Special Tax Information screen must define a set of tax codes to specify the various tax rates which apply to internal and commercial charges for parts and labor for work performed on equipment units. The Assignments tab on the Data -> Equipment Units -> Fleet Equipment screen must assign the appropriate tax code ID to the unit.
Sales tax added by location for
If the organization manages a fleet for its owner, this field specifies whether a specific sales tax set by the work order location is charged.
Labor
If this field has a check, a sales tax for labor based on location is charged.
Parts
If this field has a check, a sales tax for parts based on location is charged. Sales tax on parts is normally not computed on parts as they are received, because the organization resells the parts rather than use them.
Part receipts
If this field has a check, a sales tax is charged for parts receipts based on location. This is useful if you are charged sales tax based on the receiving location rather than the vendor or the vendor’s location.
Note: This option applies only to Enterprise Purchasing. The old purchasing functionality follows the old sales tax rules.
If any or all of these fields are checked, specify the applicable rate in the Sales tax rate for tax by individual location field on the Rates and Markups tab of the Data -> Setup -> Organization Structure -> Locations -> Primary Information screen.
Important: If you place a check in the Sales tax added by location for: Parts and the Sales tax computed automatically for: Parts receipts fields, sales tax will be added when you receive your parts and then again when you post your parts to work orders.