> Defining Tax Codes and Tax Code Rates

The next step is building the combined effect of the information from the previous forms relating to taxes using the Tax codes form (SNTAXS). Create a tax code, and then, using the Tax code rates page, enter all applicable rate codes previously created. Create any number of tax codes to fit any tax situation. Datastream 7i uses these codes later to group tax rates together.

Define tax codes to group taxes together. Enter multiple rate codes for each tax code, if necessary.

Follow these steps to define tax codes and tax codes rates.

1. Open the Tax codes form (SNTAXS).

2. Tax code—Enter a unique code identifying the tax.

3. Description—Enter a description of all the taxes included in the tax.

4. Organization—Click to select the organization to which the tax code belongs if you use multi-organization security.

5. Class—Click to select the class of the tax. The classes shown belong to the TAX entity.

6. Choose File | Save from the menu bar. Datastream 7i saves the information to the database.

Specify the tax code and all of the tax rates that should be included in it on the Tax code rates page. For example, Minnesota might have federal sales tax, state sales tax, and city sales tax.

7. Click the Tax code rates tab. Datastream 7i displays the Tax code rates page.

8. Rate—Click to select the rate used with this tax.

9. Choose File | Save from the menu bar. Datastream 7i saves the information to the database.

After defining all tax information, associate the tax code with an item.