Advanced Tax Setup: Part 1

The Advanced Tax Configuration in Sage Intacct is built upon the settings configured in Basic Tax Setup.  Prior to proceeding please refer back to previous blog posts:  Account Receivable Labels and Basic Tax, Part 1 and Part 2.

An important part of setting up advanced tax is understanding how the data is linked.  The following chart will help you see how everything links together.

Advanced Tax Configuration - Flow Chart

As you can see above the Tax Schedule Map is the center of the diagram, with all other data flowing into it.  On the right side of the chart you can see that the Tax Detail entries themselves are grouped together using the Tax Schedule. The Tax Detail entries are where you will store the percentage amount in order to allow Intacct to automatically calculate taxes for you. You can have multiple tax schedules in a single implementation and each Tax Schedule can contain one or more Tax Detail records.

On the upper left of the diagram you will see the customers.  Again, many customers can be linked together in a Contact Tax Group and you can have multiple contact tax groups in your implementation.  The AR Account Label Tax Group is used to group all your similar account labels together.  Once you have all of these items grouped together you can then set up the Tax Schedule Map to complete the configuration process.

Enable Tax Schedules

The first step to setting up advanced taxes is to turn on ‘Enable Tax Schedules’ in Accounts Receivable > Setup > Configuration as shown below:

Advanced Tax Configuration - Enable Tax Schedules

Account Labels

As we are now setting up advanced taxes we need to ensure that our Account Labels for taxable items are set up properly.  In the basic tax setup we didn’t require anything be set for the ‘Account label tax group’ dropdown field in Account labels but now that we’re doing advanced tax we will need all account labels to be a member of a tax group.

In order to set a tax group go into Accounts Receivable > Setup > Account Labels and select your group of choice from the dropdown.  If you haven’t already set up an Account Label Tax Group the list will be blank.  By clicking Add you can create a new Account label tax group and then enter the name of your group.  Note:  Account label tax groups can also be set up in Accounts Receivable > Setup > Account label tax groups.

Advanced Tax Configuration - Account Label

Advanced Tax Configuration - Account Label Tax Group

Click ‘Save’ on your new Account Label Tax Group and then select your new group from the dropdown.

Advanced Tax Configuration - Account Label Tax Group Filled

Note:  This process must be completed for every Account Label who you wish to charge tax on.

3 thoughts on “Advanced Tax Setup: Part 1

  1. […] sure to check out last week’s post – which was part one of our 4 part series on Advanced AR Tax […]

  2. […] sure to check out the Advanced Intacct AR Tax Configuration Part 1 & Part 2 if you missed them over the last 2 […]

  3. […] all the necessary steps to have Intacct calculate tax automatically for us on our AR Invoices.  In Part 1 we created taxable account labels and grouped them together into AR Account Label Tax Groups, then […]

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