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. See also Reports.
Excel - Paste the selected record/s into MS Excel worksheet.
Select All - Selects every entries that appear on list.
Help - Provide online help on selected topic.
To enter a new indirect tax code:
1. In the Main Menu Bar select Control Table > Indirect Tax Codes.
2. In the code field, enter a one or two-digit code for representing tax code.
3. Enter the name of tax in the description field.
4. Enter tax rate as a percentage. This will be calculated as a percentage of gross in data entry screens.
5. In the Distribution Line - Clearing Account, allocate a chart of account. This account will accrue your tax for submission to your Tax Department.
6. In the Distribution Line - Description section, you can select the detail that you want to include in the description line when entering (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. In the Description Line - text field, enter the description that will appear at the start if each Tax Distribution Line e.g. GST.
8. Calculate Tax Amount check box can be selected if you want the tax amount to be automatically calculated.
9. Warning Message During Data Entry section is used when the following flags have been used by someone else resulting in a warning message. Tick the box next to the fields and type in the warning message in the text field.
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.