Configuring and Calculating Taxes
Tax rates standardize VAT and withholding calculation and posting.
Define a rate
Create a rate with code, percentage, and type, then link the proper tax account.
- Only one default rate may be selected.
- New transactions use active rates only.
Calculation methods
Choose whether tax is added above the price or included within it.
- Tax is calculated per line, then rounded line values are summed.
- Multiple taxes can be applied sequentially to the running total.
Posting and reporting
The system posts tax to its account and reports collected, paid, and net due amounts.
- A rate used in transactions cannot be deleted.
- Tax reports use approved transactions only.
