Creating a Percentage Tax Code
In mixed non-VAT sales invoices, use of percentage tax codes supports accurate sales breakdowns and reporting.
To create a percentage tax code:
The new percentage tax code appears in the Tax Code column on sales transactions.
See About Mixed Non-VAT Sales Invoices for a sample invoice and related details.
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Go to Setup > Accounting > Taxes > Tax Codes > New.
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Enter or set vales for the following fields:
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Tax Code – Enter the name or abbreviation for the tax code.
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Description – Enter a brief description.
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Rate – Enter the tax percentage charged on items by this tax code.
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Exempt – Don’t check this box. If you check both Exempt and Percentage Tax boxes, the system may return an error when calculating the tax summary.
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Tax Type – Select the appropriate tax type to associate with this tax code (for example, NON-VAT PH).
To create a new tax type, go to Setup > Accounting > Taxes > Tax Types. See Tax Types Overview for more details.
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Available On – Select the transaction type to which this tax code applies.
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Percentage Tax – Check this box to display the sales that is subject to percentage tax amount in the Sales Breakdown table.
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Click Save.