The Tax Area parameter defines the sales tax rates. In the Register parameter program, you choose a default Tax Area parameter for each active register in your store. You can create as many Tax Areas as you want, but generally you would set up and use the Tax Area for your state. For example, if your store is in Vermont, you would create a Tax Area for Vermont, and probably use that as the default for all of--or most of--your store's registers.
To access the Tax Area parameter:
Select Tool-Administration-Parameters from the [i] Merchant Desktop. From the list of parameters, select Tax Area. The Tax Area parameter program will open.
When you access the Tax Area parameter program, any existing Tax Area Codes are listed. If you want to select one in order to view its properties or alter its properties, simply:
Highlight the code and click on the Properties button at the right of the screen, or double-click on the desired code.
To create a new Tax Area Code:
Select File-New-Tax Rate from the menu at the top of the screen. The Tax Area Properties screen appears. This is where you set up and define the Tax Area.
On the Properties screen, there is an assortment of fields.
In the Area Code field:
Key in the Tax Area Code. If Vermont, you would key in something like "VT."
In the Description field:
Key in the description for the Tax Area. Vermont would be "Vermont," out of state, "out of state," etc. Pretty self-explanatory.
Below these two standard parameter fields, there is a row of fields that will define the tax rate. Each tax rate is defined by a Tax Code. Think of it this way: There is a general Tax Area; then, within that Tax Area, there are Tax Codes. You can create as many rows (Tax Codes) under these fields as you want, but often, you will only need one. The first row is the default tax rate for the Tax Area you are defining. So, for Vermont, the first row is simply the Vermont sales tax. Any additional rows are for exceptions. Let's say you live in a state where clothing is not taxed, or where alcohol is taxed higher than the standard item. These would be exceptions to the standard state tax. You establish an item's Tax Code in that item's Product Properties program. [i] Merchant will then know which items are exceptions to the general tax rate.
The fields (columns) of the row are as follows:
In the State column:
Enter the state sales tax rate. Enter it with the decimal point but without the percentage sign. That is understood by the system.
In the County column:
Enter the county tax rate, if applicable.
In the City column:
Enter the city tax rate, if applicable.
In the Other column:
Enter any other applicable tax rate.
In the Tax Code column, the description for the Tax Code you select automatically displays upon selection.
In the Rounding Factor column:
Enter a "5" if you want amount at .50 or more to be rounded up, or a "0" if you do not. If you select a "5," $10.355 would be rounded up to $10.36. If you selected "0," it would round down to $10.35.
In the Receipt Indicator column:
Key in the code that will print next to each item on the sales slip. These can (and probably should) match the actual Tax Code--but they don't have to.
In the Receipt Description column:
Key in the tax description that will print on the sales slip and on EOD tax reports. This must be unique within the selected Tax Area.
The Accounting Category column is a lookup field. Here, select the Accounting Category you wish to assign to the Tax Code. This will enable you to export Tax G/L information when (or if) you run the G/L Export.
When creating a new Tax Area Code, the first row of blank fields will automatically display, waiting for you to fill them in. The Tax Code will automatically default to the Default Sales Tax, which, generally, will be the state sales tax. The default is always going to be in this first row.
If you need to make another row (i.e., select another Tax Code) after filling in the fields of the first row:
Select File--Add Tax Rate from the menu at the top of the screen. The Tax Code program will display, with a list of available Tax Codes from which to choose. Select the Tax Code you want from this list. If it doesn't exist, you can create a new Tax Code and then use it in the Tax Area program. To see how to add basic parameters within [i] Merchant, click here.
For information on how to delete a Tax Area Code from your system, click here.
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