Simon Clive at 01:17, 31 October 2011

2011-10-31T01:17:33Z

Simon Clive: Created page with "Tax Codes Do you understand the difference between the purchase tax code and the sales tax code? When creating a new account/Product you must select a tax code for the account,..."

2011-06-27T22:50:23Z

Created page with "Tax Codes Do you understand the difference between the purchase tax code and the sales tax code? When creating a new account/Product you must select a tax code for the account,..."

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Tax Codes

Do you understand the difference between the purchase tax code and the sales tax code?

When creating a new account/Product you must select a tax code for the account, this tax code will then auto load
when creating transactions within ERP. It is important to ensure that the correct tax code is used as the entries made
will automatically feed into the Tax report. If the tax codes are incorrect for an account/product this will affect
the report.

NOTE: The option Tax Code is also available here and is used to create a new tax code. Always
consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting

GST and FRE
These codes are used for sales. GST where GST is applicable which is most sales and FRE for GST free sales
such as medical supplies and some foods.
Do not use these codes for purchases or your BAS report will not be accurate

CAG and CAF
These codes are for Capital Acquisitions. ie. Items that will be depreciated such as cars, furniture etc.
Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items
purchased from a source not registered for GST.

NCG and NCF
These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions
including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and
fees to contractors that are not registered for GST but have an ABN.

WC, WET and WGST
These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia.
WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST.

EXP
EXP is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export
sales leave inactive

E
Used for acquisitions officially exempt from GST eg. Bank Fees

NT
Any other transaction that is not subject to GST

INP, CAI and NCI
These are Input taxed supplies codes and are only applicable if your business has income streams from
Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop.
Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for
non-capital purchses.

Below is a list of the Tax Codes that are pre-configured in ERP Software. Some of these codes will never be used by the majority
of businesses and are therefore inactive by default but can be made active if required.

Accessing Tax Codes

Select the Accounts drop down menu at the top left of the main screen
Select Tax Codes
Select Tax Code List
NOTE. the option Tax Code is also available here and is used to create a new tax code. Always
consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting.
Active tax codes are ticked in the list
To activate a tax code double click the code and tick Active in the new window that opens.
Save

The Tax Code List

Code Description
CAF Capital Acquisition - GST Free
CAG Capital Acquisition - Inc GST
CAI Capital Acquisition - for making Input Tax
E Tax Exempt
EXP GST Free Exports
FRE GST Free Supplies
GST Supplies Including GST
NT No Tax
INP Input Taxed Sales
NCF Non-Capital Acquisition - GST Free
NCG Non-Capital Acquisition - Inc GST
NCI Non-Capital Acquisition - for making Input Tax
WC Combined WET and WGST
WET Wine Equalisation Tax
WGST GST on Wine Equalisation Tax

You should not replace any of the above codes as reports such as your BAS depend on the correct
tax code being used.

@@ Line 1: / Line 1: @@
-Tax Codes
+'''Tax Codes'''
 Do you understand the difference between the purchase tax code and the sales tax code?
-When creating a new account/Product you must select a tax code for the account, this tax code will then auto load
+When creating a new '''Account / Product''' you must select a '''Tax Code''' for the account, this tax code will then auto load when creating transactions within ERP. It is important to ensure that the correct tax code is used as the entries made will automatically feed into the Tax report. If the tax codes are incorrect for an account/product this will affect the report.
 when creating transactions within ERP. It is important to ensure that the correct tax code is used as the entries made
 will automatically feed into the Tax report. If the tax codes are incorrect for an account/product this will affect
 the report.
-	NOTE: The option Tax Code is also available here and is used to create a new tax code. Always
+'''NB.''' The option '''Tax Code''' is also available here and is used to create a new tax code. Always consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting
-	consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting
-GST and FRE
+'''CAG and CAF''' - These codes are for Capital Acquisitions. ie. Items that will be depreciated such as cars, furniture etc. Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items purchased from a source not registered for GST.
-These codes are used for sales.  GST where GST is applicable which is most sales and FRE for GST free sales
-such as medical supplies and some foods.
-Do not use these codes for purchases or your BAS report will not be accurate
-CAG and CAF
+'''NCG and NCF''' - These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and fees to contractors that are not registered for GST but have an ABN.
-These codes are for Capital Acquisitions.  ie. Items that will be depreciated such as cars, furniture etc.
-Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items
-purchased from a source not registered for GST.
-NCG and NCF
+'''WC, WET and WGST''' - These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia. WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST.
-These are used for non-capital acquisitions such as inventory, office supplies, phones etc.  NCG for acquisitions
-including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and
-fees to contractors that are not registered for GST but have an ABN.
-WC, WET and WGST
+'''EXP EXP''' - is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export sales leave inactive
-These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia.
-WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST.
-EXP
+'''E''' - Used for acquisitions officially exempt from GST eg. Bank Fees
-EXP is only used for Export Sales and is used to populate Box G2 on the BAS.  If you don't make export
-sales leave inactive
+'''NT''' - Any other transaction that is not subject to GST
-Used for acquisitions officially exempt from GST eg. Bank Fees
-NT
+'''INP, CAI and NCI''' - These are Input taxed supplies codes and are only applicable if your business has income streams from Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop. Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for non-capital purchses.
-Any other transaction that is not subject to GST
-INP, CAI and NCI
+<br> Below is a list of the '''Tax Codes''' that are pre-configured in ERP Software. Some of these codes will never be used by the majority of businesses and are therefore '''Inactive''' by default but can be made '''Active''' if required.
-These are Input taxed supplies codes and are only applicable if your business has income streams from
-Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop.
-Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for
-non-capital purchses.
-Select the Accounts drop down menu at the top left of the main screen
+'''NB''' the option '''Tax Code''' is also available here and is used to create a new tax code. Always consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting. Active tax codes are ticked in the list To activate a tax code double click the code and tick Active in the new window that opens. Save
-Select Tax Codes
-Select Tax Code List
-	NOTE. the option Tax Code is also available here and is used to create a new tax code. Always
-	consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting.
 Active tax codes are ticked in the list
-To activate a tax code double click the code and tick Active in the new window that opens.
 Save
-You should not replace any of the above codes as reports such as your BAS depend on the correct
+'''The Tax Code List'''
 tax code being used.

13 Tax Codes - Revision history

Simon Clive at 01:17, 31 October 2011

Simon Clive: Created page with "Tax Codes Do you understand the difference between the purchase tax code and the sales tax code? When creating a new account/Product you must select a tax code for the account,..."