Step 2. Defining tax rates

Define tax rates to build the second level of tax coding. Before creating a tax rate, create tax rate types on the Tax Rate Type form.

Create a tax rate, such as "SC TAX" to represent a South Carolina state tax, and then associate that tax rate with a tax rate type, such as a sales or excise tax rate type. The combination of a tax rate type and a tax rate represent the definition of a tax rate code. You can also indicate whether to include the tax rate code in stock valuation.

To define tax rates:

  1. Select Materials > Setup > Tax Rates.
  2. Click New Record.
  3. Specify this information:
    Tax Rate
    Specify a unique code identifying the tax rate, and then specify a description of the tax rate in the adjacent field.
    Type
    Specify the type of tax rate.
    Include Part Taxes in Stock Value
    Select to include tax in inventory calculations of stock value.
    Include Service Taxes in WO Cost
    Select to include tax in service calculations of work order costs.
  4. Click Save Record.