Understanding Tax Profiles Tax System
The Tax Profile type of tax system is used for assessing different types of taxes for different types of customers and their services and products. Using the Tax Profile tax system, you can set up multiple tax codes each with a different rate and then, add specific tax codes to a tax profile. Tax profiles allow tax codes to be grouped together for the purpose of assessing multiple taxes on a product or service. The Tax Profiles are assigned to appropriate Transaction Codes.
When the transaction code is used during Bill Entry and during the Meter Import Readings/Create Transactions routines, taxes are calculated and show as a single tax total during Bill Entry. However, each tax amount is maintained in the tran_tax table and each tax amount that the customer is assessed is shown line by line on the customer statement.
Notes:
The customer Allow Tax setting must be set to Yes, the Application Options Tax System option must be set to Tax Profiles in order to assess tax profiles taxes on customer transactions.
If there is a Tax Profile set up and assigned to the transaction code, the tax rates from the tax profile will override the tax rate on the Service Setting, if there is a rate on the service.
Another way to assess multiple taxes for a customer is to use rate tables and transaction codes. For more information, see Assessing Multiple Taxes for Customers.
1. Contact
NDS Support to have the Tax Profile system activated.
2. Use Tax Code Maintenance to create Tax codes that contain the tax rates and G/L accounts for the taxes.
3. Use Tax Profile Maintenance to create Tax Profiles and add the defined tax codes to the appropriate Tax Profile.
4. Use Transaction Code Maintenance to set:
a. The Tax Code option to Tax Profiles
b. Assign the Tax Profiles to the transaction codes
5. Test to make sure the appropriate taxes are calculating correctly! To see examples, click More.
