The next step is to create the tax rate structure. To enter tax rates:
- Expand Expense by clicking on the plus sign.
- Expand Taxes by clicking on the plus sign.
- Click on Tax Rate.
- Click on the Add button.
- Fill in the following fields:
Operating Unit: Applies tax rate to single Operating Unit. If the field is left empty, the rate will apply to all Operating Units. (If T&E Option "Expense - VAT Rate" is set to Operating Unit)
- Location: Applies tax rate to single Location. If the field is left empty, the rate will apply to all Locations. (If T&E Option "Expense - VAT Rate" is set to Location)
- Expense Type*: The expense type that this tax rate is applicable.
Country*: The country in which this tax rate is applicable.
State ID*: If a specific state is subjugated to this tax rate, enter it here
Currency*: The currency in which this tax rate is applicable
Effective Date*: The date in which the tax rate takes effect.
Tax 1 Code*: VAT will be charged to this code (The code must first be created. See Tax Code.)
Tax 1 Rate*: The rate for the Tax 1 Code.
- Tax 1 Calculation*: Defaults to VAT: Based on Total Amount
- Tolerance (%)*: If a tolerance is allowed from the tax calculation
- Recovery (%)*: If there is a recovery percentage allowed from the tax calculation
Tax 2 Code: An optional second level tax code.
Tax 2 Code: The rate for the Tax 2 Code.
- Tax 2 Calculation*:
- VAT: Prorated - If the tax calculation is prorated.
- VAT: Based on Total Amount - If tax amount is calculated based off the business total.
- Tolerance (%)*: If a tolerance is allowed from the tax calculation
- Recovery (%)*: If there is a recovery percentage allowed from the tax calculation
- Description: Enter text to further identify the tax rate. This field is limited to 255 characters.
- Active*: Check the box if this tax code is to be available for selection now. (Checked by default)
- Click Save.
- Repeat the above processes until all required tax rates are entered.
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Tax on Per Diem and Mileage/Fixed Rate expense types: Tax cannot be calculated on a per diem and fixed rate expense types.
Tax Setup Matrix:
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| Optional Compute Tax is Enabled | Optional Compute Tax is Enabled | Optional Compute Tax is Disabled | Optional Compute Tax Is Disabled | |||
End User Interface |
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"Tax Included" checkbox is checked | Yes (see ex. 1) | No (see ex.2) | Yes | No | |||
Business Amount is Tax inclusive: | Yes | No | Yes | No | |||
Tax is added to Business to calculate Business Total | No | Yes | No | Yes | |||
Auto Compute Tax is checked | Yes | No | Not Available | Not Available | |||
The Tax field can be set to zero | No | Yes | No | No | |||
Changing Business field triggers re-calculation of Total | Yes | Yes | Yes | Yes | |||
Changing Business field triggers re-calculation of Tax | Yes | No | Yes | Yes | |||
Changing Tax field triggers re-calculation of Business | No | No | No | No | |||
Changing Tax field triggers re-calculation of Total | Yes | Yes | Yes | Yes | |||
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Example 1:
Screenshot of end user interface screen when "Tax Included" checkbox is checked.
The end user enters the tax-inclusive amount in the Business field and the system derives the business amount and tax. 
Example 2:
Screenshot of end user interface screen when "Tax Included" checkbox is un-checked.
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