To split tax rates:Use the split tax functionality to create different tax rates within a single jurisdiction. This can be useful if you have different tax rates for different sales amounts. For example, one sale at $999.00 might be taxed at a 7% rate, while a sale at $1,348.00 might be taxed at a 4% rate.
This functionality typically applies to Tennessee state sales tax rules, but may apply to other states as well.
To split tax rates:
From the Files > Tax, Duty & Exchange Rates menu, select Tax Jurisdiction Code Maintenance to display the Tax Jurisdiction Code Maintenance screen.
Populate the fields according to the Creating Tax Jurisdiction Codes procedure.
Use the Split Rates hot key to display the Split Tax Rate Maintenance screen. The split tax you create applies to the line item that the cursor was on when you used the Split Rates hot key.
Note: The Enable GST/PST Hot Key In Tax Jurisdiction Code Maintenance control maintenance record must be set to Y for the Split Rates hot key to be active.
In the Type field, press F10 and select one of the following to determine how the tax rate should apply:
Item – Determines the tax based on the dollar amount of each single item on the order generation.
Ext – Determines the tax based on the extended dollar amount of each line item on the order.
Order – Determines the tax based on the total dollar amount of the entire order.
In the Maximum field, enter the dollar amount where the corresponding tax rate ends.
When you specify a maximum amount for a range of sales dollars, that same amount displays in the next line in the Minimum field. This is not a duplication. Keep in mind the following:
Any amount less than the maximum amount will be taxed at the rate for that line.
Any amount equal to or greater to the maximum amount will be taxed at the rate for the next line.
If you do not specify a maximum amount, the corresponding tax rate will be applied to any sales amount equal or greater than the minimum dollar amount.
Notes: If you enter 0 in this field, the system considers the line item, dollar amount, or sales order to be taxable. If you do not want to apply a taxable amount to a line item, dollar amount, or sales order, you must leave this field blank.
In the Rate field, enter the tax rate for sales amounts that are between the amounts in the Minimum and Maximum fields.
Notes: If you enter 0.0 in this field, the system considers the line item, dollar amount, or sales order to be taxable. If you do not want to apply a taxable rate on a line item, dollar amount, or sales order, you must leave this field blank.
Press Esc to save the information and return to the Tax Jurisdiction Code Maintenance screen.
Splt * appears in the Max Txbl & Per column to indicate that a split taxable rate was applied to that line item.
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