This article describes basic information for using Tax Codes in Wavebid, and how to create them. For information on applying Tax Codes to a particular auction, lots, or an invoice, see Applying Tax Codes.
This article contains the following sections:
Tax Code Basics
The Tax Codes in Wavebid are made up of separate Tax Rates. Individual or multiple tax rates can be used to create simple or complex Tax Codes.
Creating Tax Codes at the company level allows them to be applied at the auction, lot, or invoice level.
Locking
Once a Tax Code is applied to any entity (auction, invoice, invoice line item, lot) and any payment is processed, the Tax Code is locked and can never be changed. This will in turn lock any Tax Rates that compose that Tax Code. Tax Codes/Rates that are locked will have a small Padlock icon to the right.
Deactivation
While a locked Tax Code/Rate cannot be changed, it can be deactivated. To deactivate a Tax Code/Rate, click the small Checkmark icon in the Active column. To reactivate, click the Circle Backslash icon in the Active column.
Deactivating a Tax Rate will not deactivate the existing Tax Codes using that rate, but it will prevent the Tax Rate from being used again in newly created Tax Codes. Deactivating a Tax Rate that is still being used by a Tax Code can generate reporting issues.
Deactivating a Tax Code will make is so that the Tax Code is no longer available to be applied to an auction, lots, or invoices.
Create a Tax Rate
- From the Dashboard, navigate to My Links > Company > Accounting Settings > Tax Codes.
- On the Tax Codes page, confirm the State the tax is being created for.
- In the Individual Tax Rates section, enter a Name, Rate, and a Note for the new Tax Rate.
- Click the Save button. The new tax rate will appear in the Individual Tax Rate table.
Create a Tax Code
A Tax Code is composed of one or multiple Tax Rates. Tax Rates must be created before they can be used to create a Tax Code.
- From the Dashboard, navigate to My Links > Company > Accounting Settings > Tax Codes.
- Under the Tax Codes section, click on the Create New link.
- Enter the Tax Code. Generally, this is an abbreviation or shortened version of the full Tax Code Name.
- The information entered in the Code field is what will be used on import/export spreadsheets and on company invoices, documents, etc.
- Enter the Name for the Tax Code. This field is optional.
- If desired, enter Notes.
- Select the Rates that will compose the Tax Code.
- To select multiple Tax Rates, hold the Control key (Ctrl) while clicking on the rates.
- Click the Save button.
Once Tax Codes are created, they can be applied to an entire auction, individual lots, or an invoice.
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