Transaction Code Tax Types

Set the Cashiering>Tax Types application function to Y to activate the Tax Types feature. When the Cashiering>Tax Types application function is set to Y, the Cashiering>Tax Type Calculation application setting is available. This setting may be set to Reservation or to Profile, depending on whether the tax type will be associated with a guest's reservation or to the profile attached to the reservation. (See Reservation Tax Type Calculation, below, for additional details.)

The Tax Types feature can be used to control whether or not a generate is applied to a posting, and if it is, how it is to be calculated. The feature can also determine the effective dates for application of particular generates. Tax Types can't be set on transaction codes that have been configured as a Payment or as part of a Wrapper group.

Note: Please keep in mind that when the Cashiering>Allow Routing of Tax Transactions application parameter is set to N, that tax transaction codes can't be routed and a message is displayed when this situation occurs to notify the user.

When the Cashiering>Tax Type Calculation application setting is set to Reservation, and a charge is posted to a reservation with tax type A (for example), then the charge is routed to a reservation with tax type B, the taxes are always based on the tax type associated with the originating reservation (tax type A in this example) and not on the tax type of the target reservation. (See Reservation Tax Type Calculation, below, for additional details.)

When the tax applicable to a transaction code is defined using the Tax Types feature on the Generates - New screen or Generates - Edit screen, the tax can be calculated differently for each of the tax types. (Tax types are set up for a property in Configuration>Cashiering>Tax Types prior to applying tax types to generates.)

For example, a property might have a Regular Guest tax type that is set to 4% for the restaurant food transaction code and an F&B Tax Exempt tax type that is set to 0% for the same transaction code. Which tax type will be applied to a guest's postings is determined either at the reservation level or at the payee profile level, depending on the value of the Cashiering application setting Tax Type Calculation. (Tax types are entered onto the More Fields tab of the Reservation screen or the Profile screen, as appropriate.) In addition, a default tax type (specified by the Cashiering application setting Default Tax Type) can be automatically assigned to either new reservations or new profiles.

To access the Tax Types screen, select Configuration>Cashiering>Codes>Groups, >Subgroups, or >Transaction Codes. Select the Generates button from the Transaction Codes Groups, Transactions Codes Subgroups, or Transaction Codes Setup screen. Select the New or Edit button, as appropriate from the Generates screen. From the Generates - New or Generates - Edit screen, select the transaction code for the generate; then select the Tax Types radio button. The Tax Types ellipsis icon becomes active at this point. Select the ellipsis icon to display the Tax Types screen.

This screen allows you to create a new tax type, edit an existing tax type, or delete a tax type. The screen shows the following information for the tax types set up for the transaction code.

Start Date. The effective date for the tax type. This is the date when this tax type will begin to be applied.

Currency. The currency in which the generate is calculated with this tax type.

Tax Type. The tax type code for the tax type.

Formula. The method of calculation of the generate for the tax type. The following options are available:

Do Not Post. The generate will not be posted.
Percentage. The generate is a percentage of the transaction posting.
Amount. The generate is a flat amount.
UD Function (User-Defined Function). The generate is calculated based on a user-defined function or formula.

Select the New button to create a new tax type for the property, or highlight a tax type and select the Edit button to modify an existing tax type. The Tax Type - New or Tax Type - Edit screen appears.

tax_types_new

Provide the following information.

Start Date. Select the date that the tax type is to become effective. This tax type will not be available prior to this date. Use the calendar tool or enter the date manually.

Currency. The currency in which the generate is calculated for this tax type. This is a view-only field and is set to the local currency for the property.

Tax Type. Select the down arrow to display a list of tax types. From the list, choose the tax type you wish to configure.

Formula. Select a radio button to specify the method to be used to calculate the tax type.

Do Not Post. The generate will not be posted.
Percentage. Set the tax type as a percentage. When this option is selected, enter the percentage amount in the first field to the right. In the second field, select the down arrow to choose the value against which the percentage should be applied. Usually the percentage will be applied to the base amount of the posting (B). However, you may also select the value stored in Subtotal 1 (S1), Subtotal 2 (S2), or Subtotal 3 (S3) if you are applying tax on tax.
Rounding. This field is only available for properties with zero decimals. Property decimals are configured under Configuration > Property Details. If a property is using decimal points, this field will not be visible. Specify the calculation rounding when the Percentage radio button is selected: UP, DOWN, or NONE. This applies for both inclusive and exclusive taxes. When selecting UP, any generate amount that has a positive posting will be rounded up. For example, the transaction code 1000 posted for 80 with generate of 8% Base amount, the outcome 6.40 will be rounded up to 7. When selecting DOWN, any generate amount that has a positive posting will be rounded down. For example, the transaction code 1000 posted for 80 with generate of 8% Base amount, the outcome 6.40 will be rounded down to 6. When posting a negative amount with a transaction code that has generates configured, the rounding field will be set to UP. For example, the transaction code 1000 posted for -80 with generate of 8% Base amount, the outcome -6.40 will be rounded up to -6.
Amount. The generate is a flat amount. When this option is selected you may enter the amount in the field to the right. This amount will post every time a posting is made against the main transaction code.
Note: The amount entered here is not carried over as a default amount when manually posting directly to the generate transaction code on the Transaction Posting screen.
UDF Function (User-Defined Function). Set the generate based on a user-defined function or formula. When this option is selected, a text entry box appears in which you may enter a function statement to base the generate on. For example, if the generate should only post based on the room type on the reservation, you can enter a formula (using the udf example.fun document provided by your MICROS installer) to indicate the validations.

Example: Two generates have been defined for the transaction code 1200 – Group Room Revenue:

8300 – State Tax
8350 – City Tax

The Tax Type Calculation parameter is set to Reservation (Setup>Application Parameters).

The following tax types have been configured within Configuration>Cashiering>Tax Types:

Code	Description
R	Regular Guest
ST	State Tax Exempt
CT	City Tax Exempt
ALL	All Tax Exempt

Setup

When setting tax types for transaction code 8300 (State Tax – 6%), the following information has been set up:

Tax Type	Do Not Post	Percentage	Amount	UD Function
R		6
ST	X
CT		6
ALL	X

All start dates are today's date.

If a reservation has a tax type of:

R: The state tax of 6% will post when the transaction code 1200 is posted.
ST: The state tax will not post when the transaction code 1200 is posted.
CT: The state tax of 6% will post when the transaction code 1200 is posted.
ALL: The state tax will not post when the transaction code 1200 is posted.

When selecting the transaction code 8350 (City Tax – 4%), the following information has been set up:

Tax Type	Do Not Post	Percentage	Amount	UDF Function
R		4
ST		4
CT	X
ALL	X

All start dates are today's date.

If a reservation has a tax type of:

R: The city tax of 4% will post when the transaction code 1200 is posted.
ST: The city tax of 4% will post when the transaction code 1200 is posted.
CT: The city tax will not post when the transaction code 1200 is posted.
ALL: The city tax will not post when the transaction code 1200 is posted.

Some Points on the Behavior of Tax Type Generates

If you create a tax type generate (say, Luxury Tax - transaction code 11111) for a subgroup (see Transaction Code Subgroups), and then attach this generate to, say, transaction code 99999 - Dog Grooming, be aware of the following behavior:

You may edit transaction code 99999 and remove the Luxury Tax generate (transaction code 11111). The Luxury tax will no longer be posted for Dog Grooming. The Luxury Tax generate will, however, remain attached to the subgroup with its tax types still associated with it. The Luxury Tax generate will also remain unchanged for all other transaction codes to which it is attached.
If you edit transaction code 99999, select the generates for that transaction code, and then edit the Luxury Tax transaction code, deleting any tax type associated with the Luxury Tax will delete that tax type globally from all transaction codes to which it is attached. A warning message advises you before you can go forward with this action.
If you edit the Luxury Tax generate from within its subgroup and remove any of the tax types, the same change is made to the Luxury Tax generate on all transaction codes to which it is attached.

Generates without Tax Types Configured

When configuring the tax type generates for a transaction code, if no generate is specified for a particular tax type, and a reservation exists with this tax type, then when posting to the main transaction code the generate is posted based on the Cashiering>Default Tax Type application setting; in this scenario a generate does not post if a default tax type is not configured.

Reservation Tax Type Calculations

When the Cashiering>Tax Type Calculation application setting is set to Reservation, and the tax type of the reservation changes (either because the reservation is edited or because the posting is routed to a reservation having a different tax type), the tax type calculation is not changed unless the posting is edited. Examples follow:

Scenario 1: Reservation 1 has tax type 1 associated with it. Transactions posted to Reservation 1 will have taxes posted based on tax type 1. If a transaction is edited, the tax type applied to the tax calculation does not change.

Scenario 2: Reservation 1 has tax type 1 associated with it. Transactions posted to reservation 1 will have taxes posted based on tax type 1. Now Reservation 1 is edited and tax type 2 is associated with the reservation. Existing postings will not be re-calculated due to the change; however, if a transaction originally posted as tax type 1 is edited, the tax will be re-calculated according to the current tax type for the reservation (tax type 2).

Scenario 3: Reservation 1 has tax type 1 associated with it. Transactions posted to reservation 1 will have taxes posted based on tax type 1. Routing instructions exist such that transactions posted to Reservation 1 are routed to Reservation 2, which has tax type 2 associated with it. The routed charges will not be recalculated according to tax type 2; however, if the routed charges originally posted as tax type 1 are edited on Reservation 2, the tax will be re-calculated according to the tax type for Reservation 2 (tax type 2).

Copying Transaction Codes That Have Tax Type Generates

When copying transaction codes that have tax type generates associated with them between properties (assuming the OPP_MHOT Multi-property PMS add-on license is active), the generate will not be copied to the target property if the target property's Cashiering>Tax Types application function is not active and the matching tax type is not configured at the target property. However, the main transaction code will be copied between properties without its generate.