Setting up Tax Options in Stores and Cities

To set up tax rates for your stores, go to Order Entry > Utilities > Setup > Stores

To set up tax rates for your "ship to" cities, go to Order Entry > Utilities > Setup > Cities

Field Explanations:

• Tax Method
  • Sales Tax – Sales Tax Percent will be based on selling price in order.
  • Use Tax – Use Tax is calculated only after a service line is added in order. The sales tax will be removed from the order header and the use tax is calculated behind the scenes The use tax is based on inventory cost.
  • Line Tax – Tax calculation can be both sales tax and use tax in the same order. This method requires user intervention on the lines of an order to determine the correct method to be used.
• Sales Tax Base – The options below are available for determining what totals RFMS will use to calculate sales tax.
  • Material
  • Material + Labor
  • Material + Labor + Misc Charges
  • Material + Misc Charges
• Sales Tax Percent – This field is sales tax percentage.
• Use Tax Percent – This option will only be activated if Tax Method is Use Tax or Line Tax. This is the use tax percentage.
• Misc Tax Base – Only used if there is a misc tax, state tax, or county tax required.
  • Material
  • Material + Labor
  • Material + Labor + Misc Charges
  • Material + Misc Charges
• Misc Tax Percent – This field is the percent of the Misc Tax – or – a combination or rates if there are taxes required from multiple sources. 
• Pay Tax When – This option determines when the tax liability will appear on the Month End Tax Report.
  • Delivered – This is correct if tax liability is due immediately following the job costing of the order.
  • Delivered & Paid – This is correct if there is no tax liability until the order is both job costed AND paid.

RFMS can reference the store, city file, or both depending on the System Option “Compute Sales Tax by selling Store's Location.”  For additional information, see Where does RFMS determine its tax settings?