This function allows you to maintain Tax Code operated by your company. Tax Code is applied during transaction in Sales, Purchase and Accounting entries to calculate tax.
*This function is only available if the account book is running either GST or SST Tax System.
To access Tax Code, click on the Master Data icon > Tax Code.
Creating a new Tax Code
To create a new Tax Code, click on the “+New” button.
Active: Indicate if this Tax Code is still active. Unticking this will cause you unable to select this Tax Code at your entries.
Default: To set default Tax Code. System will automatically capture this Tax Code when you add a new detail line at your entry, provided there is no other default tax code setting affecting. Refer Tax Code flow for detailed explanation for Tax Code Default.
Tax Code: Key in Tax Code.
Category: Select between Supply or Purchase category. Supply Tax Code can only be selected in Sales entries and Official Receipt while Purchase is for Purchase entries and Payment Voucher.
Description: Key in Tax Code description. Example: Service Tax 6%.
Use Transaction Account No. for Posting: Tick to post tax amount into selected account instead of tax account. Usually applies for tax that is not claimable.
Tax Account No: Assign an account for tax posting purpose.
Tax Percentage (%): Key in tax rate for tax code.
Zero Rate: Indicate if tax code is zero rated.
Add to Cost: Tick to calculate tax as your cost. Usually applies for purchase side (Purchase Tax Code).
Accounting Basis: Select between Accrual Basis and Payment Basis. Refer to Accrual Basis vs Payment Basis Tax Code for detailed explanation.
Click “Save” to commit the changes once you had done keying in or editing the required information.