The indirect tax code only needs to be setup if the country you working from has a goods and services tax. Check to see if the tax you require is automatically setup in Eclipse, if not you will need to add a new code.
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1. In the Main Menu Bar select Control Table > Indirect Tax Codes.
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2. Code = In the code field, enter a one or two-digit code for representing tax code.
3. Description = Enter the name of tax in the description field.
4. Rate = Enter tax rate as a percentage. This will be calculated as a percentage of gross in data entry screens.
5. Create Distribution LineCheckbox = Tick this to create a distribution line that will be allocated to your Tax Clearing account.
5. Distribution Line - Clearing Account = Allocate a chart of account. This account will accrue your tax for submission to your Tax Department.
6. Distribution Line - Description section = you can select the detail that you want to include in the description line when this entry is generated by the system (you can click as many boxes as necessary).
The Tax Distribution description can include a combination of the items: Vendor Name, Invoice number and Amount before Tax appearing in this order until the description field is full. For example, a Tax Distribution line could look like this:
GST: REELSOFTWARE INV#124587 1000.00
You should change the description according to how you want it to appear in the Distribution line of Data Entry.
7. Description Line - Input Text Field = Enter the description that will appear at the start if each Tax Distribution Line e.g. GST:
8. Calculate Tax Amount = Tick this check box to have the system automatically calculate the tax amount (recommended).
9. Warning Message During Data Entry = This section is used when the Tax Flag have been used by someone resulting in a warning message. Tick the box next to the fields for each module type and type in the warning message in the text field.
(AP = Invoices, PO = Purchase Orders, PC = Petty Cash)
10. Click OK button to create the new indirect tax code.
Tip: In Petty Cash Entry and Invoice Entry windows a drop-down box called Tax Code will appear. Make sure that when you enter data, the correct Indirect Code in the drop-down list appears. When you setup your vendors you can insert a tax code to be associated with a vendor. That way vendors that do or don't charge tax are flagged automatically.