User Guide: Tax Configuration Applet

Overview

The Tax Configuration Applet is a centralized tool designed to maintain all tax codes and their corresponding rates.

This applet allows users to define tax parameters that will be applied across various modules in the system.

1. Creating a New Tax Code

To set up a new tax code and rate, follow these steps:

Step 1: Initiate Creation

Click the Create button within the applet.

Step 2: Select Location

Choose the relevant Country from the selection menu.

Step 3: Define Identifiers

• Enter a unique Tax Code.
• Enter a Name (it is recommended to use the full descriptive name).

Step 4: Select Tax Type

Choose the appropriate category based on your usage requirements.

Available options include:

• GST Input or GST Output
• SST
• SLS (Sales)
• SVC (Service Charge)
• Withholding Tax Input or Withholding Tax Output

Step 5: Enter Rate

After selecting the tax type:

• The rate field will auto-populate or become available.
• You must manually input the specific tax rate.

Step 6: Save

Click Create to finalize the new tax entry.

2. Editing and Updating Tax Codes

If you need to modify an existing tax entry:

Access the Record

Click into the specific tax code you wish to update.

Modify Details

You may update:

• Tax Type
• Tax Rate
• Other relevant information

Manage Status

Change the tax code status between:

• Active
• Inactive

3. System Application

Once a tax code is successfully created and saved:

• It will automatically appear in the Tax Selection or Tax Tab
• It will be available across all other applets within the system
• It will be selectable wherever tax application is required

This applet functions as the master tax configuration module.

Best Practices and Additional Tips

1. Naming Conventions for Clarity

Although the system allows flexibility in Tax Code identifiers:

• Use a clear and descriptive Name
• Prefer full descriptive names over abbreviations
• Ensure consistency across departments

This improves usability and reduces selection errors in other applets.

2. Understanding Tax Types

Ensure you select the correct tax category based on transaction requirements:

Selecting the incorrect type may affect reporting and calculations.

3. Rate Entry Workflow

After selecting a Tax Type:

• Certain fields may auto-populate or dynamically appear.
• You must manually enter the correct numerical rate.
• Always verify the rate before clicking Create.

Failure to input the correct rate will impact financial calculations system-wide.

4. Lifecycle Management (Active vs. Inactive)

Do not delete tax codes that are no longer in use.

Instead:

1. Edit the record.
2. Change its status to Inactive.

Why?

• Preserves historical transaction data
• Prevents selection in new transactions
• Maintains audit integrity

5. Cross-Applet Integration

This applet is the master configuration tool for taxation.

Any tax code:

• Created
• Updated
• Activated or deactivated

Will immediately reflect in:

• Tax Tab
• Tax Selection dropdowns
• All relevant modules across the system