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A tax code is one sales tax with its rate and the area it applies to. A customer and each
quote or order carry up to three: Tax 1, Tax 2 and Tax 3. You pick them on the
customer’s Financials pane (Customer Service → Customer Management) and on the
order header. The list itself is kept in OJ Setup → Product Setup →
Tax Codes.
How the Tax 1 / 2 / 3 combos are filled
When you enter or change the ship-to address on the customer form (also when adding a ship-to
address), the system looks for sales tax codes that match the address:
- the country must match;
- the state, county and city must match or be “any” on the tax
code; - the ZIP is compared only when the Company Preferences setting Verify postal codes is on; then it
must match or be “any”.
Each matching code goes to the combo of its sequence: sequence 1 → Tax 1, 2 → Tax 2,
3 → Tax 3. The first code of each list is selected. A combo with no matching code is greyed out. The
valid from / valid to dates of a tax code are not checked when the list is built.
Exempt codes
A tax code with rate 0 and no state is treated as an exempt code. Exempt codes are left out of
the normal lists. When Tax Exempt is ticked on the customer, the combos show only the exempt codes
of the country (by sequence). On the order header, a customer with an exemption number gets the exempt
codes at the top of the lists, selected.
What a tax code holds
| Setting | What it does |
|---|---|
| Description / Abbrev | Name in the combos / short name on the order (e.g. “GST – 5.00%”). |
| Rate | The tax rate. |
| Country, state, county, city, ZIP | The area, as above. |
| Sequence | Which slot (Tax 1, 2 or 3) it fills. |
| Tax base | Product prices of taxable lines are taxed. |
| Tax ship | The shipping charge is taxed, when the line is taxable or the order’s job type has Tax shipping on. |
| Tax install | The installation charge is taxed, when the line is taxable or the job type has Tax installation on (see Job types). |
| Max taxable value | When above 0, the taxable amount is capped at this value before the rate is applied. Example: cap 1,600, taxable 2,000, rate 5% → tax 80.00. |
| Editable | Shows an edit icon next to the tax on the order, as a hint that its rate may be changed on that order (below). |
| Compound | Shown as Comp. on the customer. Stored; tax is not calculated as compound in the current version. |
| Mfg labor, other, deposits at invoice rate, tax account, currency, valid from/to | Stored; no effect found in the current version. |
Discounts are taken off before tax: a discountable line is taxed on its price less the order
discount.
Changing the rate on one order (Tax Code Rate)
On a quote or an unconfirmed order that has at least one line, click the Tax 1, Tax 2 or Tax 3 label
(codes marked Editable show an edit icon, but in the current version the click works for any code). The Tax Code Rate dialog shows the rate in percent;
type the new percent and click the check-mark (accept) button. The new rate is kept on that order only and is used instead of the
code’s rate from then on; the tax code and other orders are not changed. This is available only
when your company is set up as a dealer, super dealer or supplier.
Surcharge codes
Tax codes of the surcharge kind are linked to a customer group and fill three surcharge slots on new
quotes and orders for customers in that group (see Customer
record).
ship-to address. Enter country, state, city (and ZIP if your company checks it) before choosing taxes;
changing the address later refills the lists and selects the first code again.