Complete the Tax Setup Cycle

Complete the Tax Setup Cycle in Intacct with this final blog post that ties everything together.

Tax Details

The Tax Details are where you will set up the tax percentage and link the tax detail to a GL Account.  In order to create a new Tax Detail navigate to Order Entry > Setup > Tax > Details > Add and enter the required information.  Please note that the Detail ID will be used as the record key so it needs to be unique can can’t be changed once it’s saved.

Complete the Tax Setup Cycle - Tax Details

Tax Schedules

One way to think of tax schedules is as a grouping of tax detail records. When a jurisdiction has multiple levels of taxation each level will be a separate tax detail which will then be grouped together as that Jurisdiction’s Tax Schedule.  Tax schedules can have one or many Tax Details associated with them and they are later mapped to the Tax Schedule map.

To create your Tax Schedule you must open Order Entry > Setup > Tax > Schedules > Add.  The first tab in this screen is the Schedule Info.  This is where you will assign a Schedule ID.  This ID will be the key for the record so once it’s saved, it cannot be changed.  We will name our Schedule after our tax jurisdiction ‘Ontario’.

Complete the Tax Setup Cycle - Tax Schedules

The second tab in the Tax Schedule information is where you link, or group, the tax detail records to the tax schedule.  As we only have one tax detail to link, we only have one entry in the Details section.  If we had a jurisdiction that had two separate tax rates but wanted to group them into one Tax Schedule we would do that here.

Complete the Tax Setup Cycle - Tax Schedule Info

Tax Schedule Map

You might remember from the Order Entry advanced tax diagram presented in the first part of this series (shown below) that the Tax Schedule Map is the center of the tax setup.  This is where you link everything together, Customers & Contacts, Inventory Items and Tax Details and enables Intacct to automatically calculate tax.

Complete the Tax Setup Cycle - Tax Schedule Map

Tax Schedule Maps are created in Order Entry > Setup > Tax > Schedule Maps and are a mapping between Order Entry Transaction Definition, Item Tax Group, Contact Tax Group and Tax Schedule.  To link all these items simply select the appropriate values from the 3 dropdown boxes and then press ‘Save’.

Complete the Tax Setup Cycle - Tax Schedule Map Info

Note:  This process must be completed for every Transaction Definition you wish to charge tax on.

Congratulations!  You have configured Order Entry advanced tax in Intacct!