Return to Navigation

Setting Up Tax Authorities and Tax Codes

To set up tax authorities and tax codes, use the Tax Authorities component (TAX_AUTHORITY) and the Tax Codes component (TAX_CODE_VAT).

This section provides an overview of tax authorities and tax codes and discusses:

Your institution may be under the jurisdiction of one or more tax authorities that require you to charge taxes for certain transactions. To process tax charges, you must define one or more tax authority codes.

Tax codes are used to link taxes to charge item types. Each tax code must include at least one tax authority, but can include more than one if your institution is subject to more than one taxing authority. For example, you may need to charge students both state and local sales taxes for books. By setting up a tax code that combines the two authorities, you can charge both taxes.

Page Name

Definition Name

Navigation

Usage

Tax Authority

TAX_AUTHORITY

select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Authorities, then select Tax Authority

Define tax authorities.

Tax Authorities - Rebate

TAX_AUTHORITY_PSB

select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Authorities, then select Rebate

Specify VAT rebates for tax authorities.

Tax Authorities - Summary

TAX_AUTHORITY_VAT

select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Authorities, then select Summary

Review tax authority parameters.

Tax Codes

TAX_CODE_VAT

select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Codes

Define tax codes using one or more tax authorities.

Access the Tax Authority page (select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Authorities, then select Tax Authority).

Image: Tax Authority page

This example illustrates the fields and controls on the Tax Authority page. You can find definitions for the fields and controls later on this page.

Tax Authority page

Field or Control

Definition
Tax Code Type

Select a tax code type of S (sales tax) or V (value added tax).
Percent

Set the default percentage of tax that the authority assesses.
Same Account and Acct Type (account type)

Select the Same Account check box if you want the tax assessed to appear in the same account as its associated charge. If you clear the check box, you can select a different account type in the Acct Type field.
Item Type

Select the item type that you have defined for transactions from this tax authority.
Service Impact

Select the service impact that exempts customers from this taxation.

Access the Tax Authorities - Rebate page (select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Authorities, then select Rebate).

Image: Tax Authorities - Rebate page

This example illustrates the fields and controls on the Tax Authorities - Rebate page. You can find definitions for the fields and controls later on this page.

Tax Authorities - Rebate page

Field or Control

Definition
VAT PSB Type (value added tax public service body type) and Rebate Rate

If applicable, select the value added tax public service body type and enter a rebate rate.

Access the Tax Codes page (select Set Up SACR, then select Product Related, then select Student Financials, then select Charges and Payments, then select Tax Codes).

Image: Tax Codes page

This example illustrates the fields and controls on the Tax Codes page. You can find definitions for the fields and controls later on this page.

Tax Codes page

Field or Control

Definition
Consolidate Same Item Type

If you are creating a code that combines two or more different tax authorities, you can select this check box to consolidate the tax transactions that make up the code into the same item type during posting. Otherwise, the system creates each transaction on an account as individual entries.
Authority

Select the tax authority that you want to attach to the tax code.
Percentage

The default percentage appears to the right of each authority that you add.