Indirect Tax Codes

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.

Buttons

Insert - Add a new tax code.
Change - Change a highlighted tax code.
Delete - Delete a highlighted tax code (only if it is not being used).
Reports - Create a tax code report.
Right click on an entry and then select Excel - Export the selected record/s into MS Excel worksheet.
Select All - Selects every entries that appear on list.

To enter a new indirect tax code:

In the Main Menu Bar select Control Table > Indirect Tax Codes then fill out the following details:

Code: In the code field, enter a one or two-digit code for representing tax code.
Description: Enter the name of the tax in the description field.
Rate: Enter tax rate as a percentage. This will be calculated as a percentage of gross in data entry screens.
Create Distribution Line Checkbox: Tick this to create a distribution line that will be allocated to your Tax Clearing account.
Distribution Line - Clearing Account: Allocate a chart of account. This account will accrue your tax for submission to your Tax Department.
Description Line - Input Text Field: Enter an optional text description that will appear at the start of any Tax Distribution Line generated by the system, e.g. Test:
Distribution Line - Description checkbox section: You can select the detail that you want to include in the description line when this tax line entry is generated by the system by ticking the displayed checkboxes.

The Tax Distribution description can include a combination of the items in this order: User entered description, Amount before Tax, Invoice number, and Vendor Name.

For example, a Tax Distribution line could look like this if you have entered in a user description and ticked all checkboxes.

User entered description, Amount before Tax, Invoice number, and Vendor Name.
Test: 1000.00 INV#124587 REELSOFTWARE

You should change the description according to how you want it to appear in the Distribution lines of your general ledger.
Calculate Tax Amount: Tick this check box to have the system automatically calculate the tax amount (recommended, otherwise the system will not calculate tax for this tax flag).
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)
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.