Tax Codes allows the user to create tax codes that can be assigned to products and/or freight in contracts, orders and invoices in both purchases and sales. The system has the ability to have numerous tax codes. Effective dates are used to change rates for the tax codes. In v7.27+, there is an option to automatically calculate the tax amount based on the product type and source country and/or state and the destination country/and or state.
Table Name: ProteinTaxCodes, Protein Tax Rates
There are two grids that must be defined on the tax code:
Tax Codes must be defined prior to creating an effective date in the tax rate section.
In Admin>Business>General>Definitions, select Tax Codes.
Select 
to
create a new record.
Enter a Tax No to identify the tax.
Enter a Tax Name to describe the tax.
Select a Tax Type to identity the type of tax. Options are State, Federal or Other.
Select an Expense Type where system will code the tax account. Options are:
Accrual - Amount will be accrued at receipt and coded to the account defined in Purchase Account. If there is no account define, then the tax amount gets included with the product cost.
Invoice - No accrual at receipt. Tax amount will be determined at the invoice stage and tax journal will be created.
Select a Purchase Account No where the tax will be coded when the tax code is assigned to vendor skus.
Select a Sales Account No where the tax will be coded when the tax code is assigned to a sales sku
Grower Pay Expense Account can be used in settlements to define the Cost Element in the tax amount.
The Grower Pay AP Account allows the user to select the User Account that will be used when recording taxes in settlements.
Vendor No defines the vendor that is paid for the tax remittance.
Check Calc on Net if the tax will be calculated on the product amount plus and taxes that do not have the Calc on Net option selected. This option basically calculates tax on tax.
Tax Exempt indicates if the tax is tax exempt but still requires a tax code to identify that it is exempt. If the Customers>Companies or Vendor>Companies tab has the Tax Exempt option selected, the tax logic will only look to Tax Exempt tax codes when deriving the applicable tax rate.
Cash Basis indicates that the tax is recognized when the cash is collected. There is no logic for cash receipts in MTech so there is no additional logic. It is only required to transfer data to the financial system. If the Customers>Companies or Vendor>Companies tab has the Cash Basis option selected, the tax logic will only look to Cash Basisi tax codes when deriving the applicable tax rate.
Tax Rates are updated in the Tax Rate Screen by assigning a new effective date to a new tax rate. The effective date will determine when the tax rate is to be applied.
Enter an Effective Date when the tax rate is to be utilized.
Select the Product Type. Leave blank if the Tax No applies to all product Types.
Select the Source Country No to indicate the country is being shipped from. Leave blank if Tax No applies to all countries where product is being shipped from.
Select the Destination Country No to indicated where the product is being shipped to. If the Source Country No is selected, the Destination Country No must also be defined for the tax logic to be applied.
Select the Source State No if the tax is calculated based on a specific state where the product is being shipped. Leave blank if the Tax No applies to all states where the product is being shipped from.
Select the Destination State No to indicate the tax based on where the product is being shipped to. If the Source State No is selected, the Destination State No must also be defined for the tax logic to be applied.
Enter a Tax Rate -amount of tax.
Save and close the record.
