Accounts Receivable                                                   Sales Tax Overview

Sales Tax Overview (continued)

Tax Group Setup

Each Tax Group is linked to one or more Tax Tables.  A Tax Group is assigned to each customer site.  When invoices are created for a site, the tax group assigned to the site automatically defaults into the invoice header.  The tax group on an individual invoice may be overridden if needed.

Tax Table

Each Tax Table defines what types of services (Item Types) are taxable, the tax rate, the effective dates of when a tax rate is in effect, the G/L account that will be used for the credit side of an invoice transaction, and the Tax Agency (Vendor) to whom you will remit tax payments for taxes invoiced.

The SedonaOffice application calculates sales tax based on the invoice date entered by the User.  The Invoice Date is compared to the Tax Table Effective Dates to determine which tax rate to use in calculating the sales tax.

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