Difference between revisions of "13 Tax Codes"
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| − | Tax Codes | + | '''Tax Codes''' |
| − | Do you understand the difference between the purchase tax code and the sales tax code? | + | Do you understand the difference between the purchase tax code and the sales tax code? |
| − | When creating a new | + | 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. | + | |
| − | + | '''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 | |
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| + | <br> '''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. | |
| − | These codes are | + | |
| − | such as | + | |
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| − | + | '''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 | + | |
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| − | + | '''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 | + | |
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| − | + | '''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 | |
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| − | + | '''E''' - Used for acquisitions officially exempt from GST eg. Bank Fees | |
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| − | + | '''NT''' - Any other transaction that is not subject to GST | |
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| − | + | '''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. | |
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| − | + | <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. | |
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| + | *To Access the '''Tax Codes''' Select the '''Accounts''' drop down menu at the top left of the '''Main Screen ''' | ||
| + | *Select '''Tax Codes''' and Select the '''Tax Code List''' | ||
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| − | + | '''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 | |
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| − | 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. | + | |
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| − | You should not replace any of the above codes | + | '''The Tax Code List''' |
| − | tax code being used. | + | |
| + | *'''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 WEG | ||
| + | *'''WET''' Wine Equalisation Tax | ||
| + | *'''WGST''' GST on Wine Equalisation Tax | ||
| + | |||
| + | You should not replace any of the above codes. Reports such as your '''BAS''' depend on the correct tax code being used. | ||
Latest revision as of 12:17, 31 October 2011
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.
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
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.
- To Access the Tax Codes Select the Accounts drop down menu at the top left of the Main Screen
- Select Tax Codes and Select the Tax Code List
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
The Tax Code List
- 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 WEG
- WET Wine Equalisation Tax
- WGST GST on Wine Equalisation Tax
You should not replace any of the above codes. Reports such as your BAS depend on the correct tax code being used.
