SedonaSetup                                Accounts Receivable Setup Tables/Options

Tax Tables Field Definitions (continued)

Effective Dates & Formula [tab]

Effective Date – Enter the first date this tax table went into effect.

End Date – If the tax table is still in effect leave this field blank.  If/when a tax rate change occurs, you will enter and end date into this field, then click the New button at the bottom of the form to enter the Effective Date, Rate and Formula Type.

Rate – Enter the tax rate that applies to this tax table.  Six percent would be entered as 6.0.

Formula Type – Defines which method the SedonaOffice application will use to calculate sales tax on Invoices and Credit Memos.

·Flat Rate – sales tax will calculate on the invoice item and/or inventory parts based on the rate entered in the Rate field of the Effective Dates and Formulas form.

·Max Taxable Sale - sales tax will calculate on the invoice item and/or inventory parts up to the dollar amount entered in the Formula Field. For example if the formula amount is set to $5,000.00 and the invoice item is for $10,000.00, only the first $5,000.00 will be taxed.

·Min Taxable Sale - sales tax will calculate on the invoice item and/or inventory parts beginning at the dollar amount entered in the formula field. The Invoice item must be for at least the minimum amount entered in the Formula Amount field; all amounts at and above the setup amount will be taxed.

·Maximum Tax - sales tax will calculate on the invoice item and/or inventory parts up to a particular amount of sales tax.  For example if the formula amount is set to $75.00 and the calculated amount of tax is 76.00, only $75.00 of sales tax will be recorded against the invoice item.

·Pctg of Sale – (Percentage of Sale) sales tax will calculate on the invoice item and/or inventory parts as a percentage of the sale amount. For example, if the tax rate for the Tax Table is set to 5% with the Formula Amount of 10, and the invoice amount is $50.00, sales tax would be calculated on 10% of the invoice amount at the rate in the tax table which is applicable to the invoice item type. The calculation would be ($50.00 x 10%) x 5% for a total sales tax amount of $0.25.

FRM 24078

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