Siebel Hospitality Guide > Setting Up Charge Codes, Taxes, and Service Charges >

Tax Code Administration

Taxes can be a flat amount (for example, $5) or a percentage, and have defined effectivity dates. Taxes are defined on a global basis and are later associated with individual properties. Using charge codes, taxes are calculated based on the products associated with an order. When a flat tax is calculated during the Trial Check or Post Check process, the flat amount (for example, $2) is applied to each quantity of the product used.

An occupancy tax is a flat tax assessed for room usage. For example, if a group uses Salon C, then a tax of $100 is levied regardless of the size of the group.

Service charges and taxes are time-dependent; both have a start date and an end date. Service charge and tax date applicability is based on when the function with which the line item is associated occurs. Because multiple functions may be associated with each order and these calculations are done on an order basis, service charges and taxes may be different for different functions on one order. For example, a function might be held on 12/31/03 and another on 1/1/04, and a new set of taxes and service charges are effective on 01/01/04. If a function spans two days, then the tax applicability date is the first day.

Taxes must be defined before they can be associated with charge codes, service charges, and properties.

Tax code administration involves a three-step process:

1. Creating a Tax Code
2. Associating a Tax Code with a Property
3. Associating Tax Codes to Service Charges

Related Topics

• Generating an Event Check
• Service Charge Administration