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The next step is to create the tax rate structure. To enter tax rates:

1. Expand Expense by clicking on the plus sign.
2. ExpandTaxes Taxes by clicking on the plus sign.
3. Click on on Tax Rate.
4. In the Tax Rate screen, click the Add Click on the Add button.
5. Follow the steps in the table below to enter tax rates.
6. Fill in the necessary fields defined in the table below (Note: The first field is configured on the selection made in System Options under Expense - VAT Rate):
7. When the appropriate fields in the Setup Tax Rate screen are complete, click the Save button.
8. Click the Back button.
9. Repeat the above processes until all required tax rates are entered.

*Indicates a Required Field

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Field

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Description

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Operating Unit:

1. following fields:
   

   1. 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)

   2. Location

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1. 1. : 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)

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1. 1. Expense Type*:

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1. 1.  The expense type that this tax rate is applicable.

   2. Country*:

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1. 1. The country in which this tax rate is applicable.

   2. State ID*:

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1. 1. If a specific state is subjugated to this tax rate, enter it here

   2. Currency*:

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1. 1. The currency in which this tax rate is applicable

   2. Effective Date*:

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1. 1. The date in which the tax rate takes effect.

   2. Tax 1 Code*:

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1. 1. VAT will be charged to this code (The code must first be created. See Tax Code.)

   2. Tax 1 Rate*:

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1. 1. The rate for the Tax 1 Code.

   2. Tax 1 Calculation*: Defaults to VAT: Based on Total Amount
   3. Tolerance (%)*: If a tolerance is allowed from the tax calculation
   4. Recovery (%)*: If there is a recovery percentage allowed from the tax calculation

   5. Tax 2 Code:

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1. 1. An optional second level tax code.

   2. Tax 2 Code:

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1. 1. The rate for the Tax 2 Code.

   2. Tax 2 Calculation*:
      1. VAT: Prorated - If the tax calculation is prorated.
      2. VAT: Based on Total Amount - If tax amount is calculated based off the business total.
   3. Tolerance (%)*: If a tolerance is allowed from the tax calculation
   4. Recovery (%)*: If there is a recovery percentage allowed from the tax calculation
   5. Description: Enter text to further identify the tax rate. This field is limited to 255 characters.
   6. Active*: Check the box if this tax code is to be available for selection now. (Checked by default)
2. Click Save.
3. Repeat the above processes until all required tax rates are entered.

*Indicates a Required Field

Tax Rate Notes

Two levels of taxes: If there are two levels of Tax, the second level is set up in the same fashion as the first. Different rates and tolerances can be configured for each level. If there is a second level, the first level rate must be greater than 0.00 and tax 2 Code should be set to VAT: Prorated. If there is only one VAT tax, it must be set as Tax1. If there are two VAT taxes and one is VAT prorated, the prorated must be set up as Tax 2 Code.

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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:

Example 1:

Screenshot of end user interface screen when "Tax Included" checkbox is checked.

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