HOW TO SET UP OR CHANGE SALES TAX CODES IN SAGE 100

The New Year brought several significant changes to tax codes nationwide.  If you’re not sure if there have been any changes to sales tax in your area, our partners at Avalara recently published a list of expected 2018 sales tax changes.

For example, effective January 1, 2018, the New Jersey Sales and Use Tax Rate has been changed to 6.625%.  Sage 100 users who operate in New Jersey will need to manually make this change in their system.

In Sage 100 or Sage 100cloud, you can setup and/or change Sales Taxes using the “Sales Tax Code Maintenance” and “Sales Tax Schedule Maintenance” windows in Library Master.  The Sales Tax Code Maintenance screen allows you to set up for individual jurisdictions, which can then be applied to a Sales Tax Schedule.  Customer(s), and Invoices then can have a Sales Tax Schedule associated with them.

Below, we’ll walk you through the four-step process to getting your system set up for Sales Tax. If making changes to existing records you’ll only need to follow steps 1 & 2.

1. If you’re making changes to an existing record, make sure that you have posted all of your invoices that should be taxed at the previous rate before making any changes. In fact, we recommend that you make a copy of your company before making any significant changes to the system in order to protect your data.
2. Navigate from Modules>Library Master>Setup>Sales Tax Code Maintenance. Enter the tax code, description, and tax rate and click apply.  If changing an existing code, then simply select the Tax Class Line and update the tax rate. When done select <Accept>.
3. To create or update Sales Tax Schedules, navigate from Modules>Library Master>Setup>Sales Tax Schedule Maintenance. Enter the tax schedule code, name, and use the lookup function to apply the proper Sales Tax Codes to the Schedule.  Select <Accept> when the correct changes have been made.
4. To apply to a Customer, navigate from Modules>Accounts Receivable>Main>Customer Maintenance. Select the tax code schedule on the right side of Main Tab 1, and click Accept.  This will now allow Sage to apply this Tax Schedule to an Invoice.

If you are not sure or would like assistance please contact us and we can walk you through the process and answer any questions you have.

Want to get the most out of your system? We’re happy to offer flexible Sage 100 training options.