This is an AnyPO II and III feature.

To reach this function, select OTHER TASKS >> SET-UP TAXES & TAX RATES.  The following dialog box appears:

This Feature Not Needed if You Have One Tax Rate

You do not need to use this feature if you have only one tax rate.  (To set-up one tax rate, select FILE >> BASIC PROGRAM SET-UP.  Click "Sales Tax" tab and indicate the rate.)  If, however, you must deal with more than one rate or if more than one tax is involved (such as in some provinces in Canada), you'll want to set up tax codes.

How to Set-up Tax Codes

The spreadsheet on the Tax Set-up dialog box allows you to add or modify tax codes.  In the first column, type in a code.  In the second column, type in a name for the code.  The name will appear on a pop-up list from which you can select.

You can set the code field so that it always capitalizes the code--or you can set it so that is case sensitive.  An 'All Capitals,' setting make things easy if you just have a couple of codes.  Use case sensitive when you have lots of codes.

If you have only one tax rate for each code, there's only one other column you need to use:  'Overall Tax Rate' column.  Enter the tax rate as a decimal, i.e. 0.06500 = 6.5%.

More than One Tax on PO's

The other columns may be used if the Overall Tax Rate is made up of two or more taxes.  These are called "Component Taxes."  Be sure to indicate whether the component tax should include shipping by placing a checkmark in the "Tax Shipping?" column.  Note you can scroll the spreadsheet to the right to access more component tax columns. Make sure that the overall rate is the sum of individual component tax rates.

If you have TWO (2) component taxes, you can have each listed on separate lines on the printed PO by placing a checkmark under the two asterisks: * *.

When you have two or more taxes, AnyPO combines the taxes into one amount on the Main Purchase Order Screen.  This is done to save room, but you can look at a more complete picture.  If you need to view each of the tax amounts, double-click on the tax and AnyPO will itemize each component.  In other words, if the tax is 26.54, double-click on the number: 26.54 and a window will pop-up with each of the taxes itemized.

Additionally, as noted above, if you have two taxes, you can indicate to AnyPO that you want both of the taxes itemized on the printed PO.  Remember, to do this, place a checkmark in the column indicated with the two asterisks ( * *).

Designate Names

You can give names to each of the component taxes.  To do so, first select the proper row on the spreadsheet.  Then click on the "Designate Names" button.  Fill in the blanks for each component tax.  You have up to 8 characters of space for each name.  When you exit from the "Designate Names" dialog box, you will see the names of each component tax just above the spreadsheet.

You can designate name for each tax code.  If you have more than one tax code, the names displayed just above the spreadsheet will change as you select different rows on the spreadsheet.

The names that you designate will appear on the printed purchase order.

Note that when it comes to the printed purchase order, tax code names have priority over those that you enter in Basic Set-up or in More Options (accessed from the Print Purchase Order dialog box).  In other words, if the PO you are printing has a tax code on it, and you've designated a name for the tax, that's what will appear on the printed purchase order.  If you haven't designated a name, then the name (if any) that you have indicated in Basic Set-up or "Printing More Options" will be used.  Finally, if you haven't designated any names, then the word "tax" will be used.

Optional Tax Note

Use "Optional Tax Note" if . . .

For example, the Optional Tax Note for Canada might read:

Tax (GST 6% / PST 7%) GST #9999 9999 RT0001.

This note will appear just to the left of the amount of tax on the printed PO.  (Canada and other users: you can also place each tax on a separate line.)

Calculating the Second Tax Based on Selling Price and First Tax

Some provinces in Canada (and other countries), have a tax structure which requires the second tax to be based on the cost the items PLUS the first tax.  You can configure AnyPO to do this by scrolling the spreadsheet to the right.  Look for "Calculate 2nd Tax on Selling Price Plus 1st Tax" and place a checkmark here.

Helpful Hint

For Level II and III users, when you are on the Main Purchase Screen, you can obtain information on how tax is calculated.  To do so, double-click on the tax amount and the "Tax Calculation Information" box will appear.  Let's say the tax is 27.01.  Double-click on 27.01.  AnyPO will display an informational box with details on how the tax is calculated.  This is particularly useful if you must deal with two or more taxes on one PO.  Here's what the "Tax Calculation Information" box looks like:

How to Code Your PO's

Once you have codes set-up, you can access them by placing your cursor in the blank following the "Taxable" checkbox on the Main Purchase Order Screen.  Double-click and press CTRL+L to bring up a list of codes.  Select the appropriate code, and the PO will be taxed according to that rate.

Always select from the pop-up list.  Typing in the code will not transfer all necessary tax information needed to properly calculate the tax.

What if a Code's Tax Rate Changes?

Government agencies change tax rates from time to time.  When they change, you can almost count on them going up but occasionally a rate goes down.  When a tax rate for a tax code changes, you'll need to create an entirely new code.  That way all of your old PO's are calculated using the old rate (as they should), and all new PO's are calculated using the new rate.  It's the same situation with reports.  You can finish out the year by using the old code to provide you with a sum total of the taxes, and thereafter, use the new code for tax reporting purposes.  Also, don't forget the Vendor Database.  If the tax code is associated with one or more vendors in the Vendor Database, be sure to change the code there as well.

There's one other situation that may occur.  Let's say that you set up tax codes, but after using the tax code on a few PO's you realize that you originally used the wrong rate.  First, correct the rate.  Then run through each your PO's and re-select the code for each PO.  You need to re-select the code because AnyBook saves tax information with each PO.  The only way to change the old information to the new is re-select the code from the pop-up list.

Taxing Some Products and Not Others

When the taxable box is checked, all products listed in the item area will be taxed.  However, there may be situations where you may not want everything on the list taxed.  To designate a product as non-taxable, type a "/NT" (for non taxable) after the product's name in the item column.  (If a product's name fills the entire column, you may need to slightly abbreviate the name.)  You can also do this automatically by clicking on the item and selecting STOCK TOOLS >> DESIGNATE AS NON TAXABLE ITEM. More information

Taxing All PO's or for a Specific Customer

If the "Taxable" box should always be checked for sales to a specific vendor, you can set it up in the Vendor Database.  To do so, select OTHER TASKS >> VENDOR ADDRESSES AND NUMBERS.  Place checkmark beside: "Taxable sales."  You can also assign a consistent tax code for sales to the vendor by entering the code in the appropriate blank.