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VALUE ADDED TAXES
CUSTOMER CLASS:
A Customer Class should be setup for those customers who will be charged the Value Added Taxes (VAT). The Customer Class contains the names of Pre-defined General Ledger accounts, such as Accounts Receivable, Cash, Freight, etc. The user is then able to define their own account numbers for each of these fields. The Customer Class setup is required for the Price Table File setup.
TAX RATE FILE MAINTENANCE:
The Tax Rate File maintenance screen is set up to determine the General Ledger account number that the Value Added Tax is charged to. This file will also hold the accumulated totals for the defined General Ledger account. Since Value Added Taxes are added to the Price of the Inventory Items, you must answer "Yes" to the question that asks "Tax Included in Price?." This will tell Platinum that when Invoices are posted, any line items that have been assigned this tax rate (in the price table), will subtract from the price, the percentage of the Value Added Tax and post that amount to the defined General Ledger account.
PRICE TABLES:
Price tables are set up for each Customer Class/Inventory Class combination. The definitions setup in this Customer Class/Inventory Class will be applied to items sold using the Value Added Taxes. Specify the percentage of the Price of the Inventory item that is the actual Value Added Tax. This is the percentage that the Tax File looks for when you answer "Yes" for "Tax included in Price?". The reason for this is, if some of your Inventory Items are sold without tax included in price, you can use the pricing tables so only specific Customer Classes will have the Value Added Tax added in the price. If not, other Customer Classes may just sell the item at regular price without tax. If your base price includes tax, pricing tables will not be required.
