This topic explains the setup required before you can start creating parent tax codes and entering combined tax documents. Read What is Combined Tax? before you work through this setup. This setup should be performed by a System Administrator or by an accountant with experience of modifying the page layouts of custom objects.
Company Record Type
The company record type must be Combined. You choose the record type when creating a new company. Do not change the record type of a company in which tax amounts have already been posted.
Changes to the Tax Code Page Layout
Add the following custom fields to the Tax Code object's page layout:
| Field | Type |
|---|---|
| Parent | Boolean |
| GST | Lookup |
| PST/QST | Lookup |
| Tax Model | Picklist |
Changes to the Document Line Item Page Layouts
When entering documents using Extended Edition
The view of the application that you see when you install one of the extension packages (such as the Cash Entry Extension package). For invoices, credit notes, and journals Extended Edition is integrated into the main package, but must be configured., users can add document line items either by using the New Line Item buttons or by using the Manage Lines button.
To add lines using the New Line Item buttons, you must add the following custom fields to the "extended" page layouts for the specified line items:
| Document Line Item | Field | Type |
|---|---|---|
| Sales Invoice Line Item | Combined Tax Code | Lookup |
| Sales Credit Note Line Item | Combined Tax Code | Lookup |
| Payable Invoice Line Item and Payable Invoice Expense Line Item |
Combined Tax Code Tax Code 2 Tax Rate 2 Tax Value 2 |
Lookup Lookup Number Number |
| Payable Credit Note Line Item and Payable Credit Note Expense Line Item |
Combined Tax Code Tax Code 2 Tax Rate 2 Tax Value 2 |
Lookup Lookup Number Number |
When adding lines using the Manage Lines button, the appropriate Manage Lines (Combined Tax) field set is applied automatically so no further setup is required.
Create Child Tax Codes
Create the "child" tax codes you require, such as federal and provincial tax codes. Create the appropriate rates on these tax codes. You can add more rates and edit rates later. If you want the child tax details to be itemized in PDF versions of sales invoices for printing or emailing to customers, choose the appropriate tax model (GST, PST or QST).
Create Parent Tax Codes
Create the parent tax codes you require and link them to the appropriate children. Choose the correct tax model as explained in What is Combined Tax?. You cannot add, edit or delete tax rates on a parent tax code; instead its tax rates are calculated from the rates on its children.
Set Default Tax Codes
Set default tax codes on Company, Account, Product records as for VAT/GST tax regimes. See About Tax for information about how FinancialForce Accounting determines which default tax code to use.