Configure Sales Taxes

The following sections describe how to configure and use taxes:

1. How to Configure Product Tax Categories

2. How to Configure Tax Jurisdictions

3. How to Configure Tax Regions

4. How to Configure Tax Rates

5. How to Configure the Default Tax Region for the Hospital

6. How to Configure the Default Tax Region for a Hospital Unit

7. How to Configure Taxes for Products and Services

8. How Taxes are Applied to Order Items

(1.) How to Configure a Product Tax Category:

1. Navigate to the 'Product Setup' screen → 'Tax Setup' tab → 'Product Tax Category Setup' subtab.

   Open

   

   'Product Setup' screen → 'Tax Setup' tab → 'Product Tax Category Setup' subtab

    

2. Select the row that represents an existing Product Tax Category; OR,

3. Click the ‘Add’ button to add a new Product Tax Category.

4. Edit the Product Tax Category Name, Description, and Code.

5. Click the ‘Save’ button to save changes and close the ‘Add / Edit Product Tax Category’ section; OR,

6. Click another row in the ‘Product Tax Categories’ list to close the Add / Edit Product Tax Category’ section without saving.

(2.) How to Configure a Tax Jurisdiction:

1. Navigate to the 'Product Setup' screen → 'Tax Setup' tab → 'Tax Jurisdiction Setup' subtab.

   Open

   

   'Product Setup' screen → 'Tax Setup' tab → 'Tax Jurisdiction Setup' subtab

2. Select the row that represents an existing Tax Jurisdiction; OR,

3. Click the ‘Add’ button to add a new Tax Jurisdiction.

4. Edit the Tax Jurisdiction Name, and Code.

5. Select a Product Tax Category, then specify the Tax Rate imposed by the Tax Jurisdiction, and the ‘Start Date’ and ‘End Date' of the period for which the Tax Rate is valid.

   1. For each Tax Jurisdiction, the Tax Categories are assigned a Tax Rate for a valid Tax Rate Period.

6. Click the ‘Save’ button to save changes and close the ‘Add / Edit Tax Jurisdiction’ section; OR,

7. Click another row in the ‘Tax Jurisdiction’ list to close the Add / Edit Tax Jurisdiction’ section without saving.

(3.) How to Configure a Tax Region:

1. Navigate to the 'Product Setup' screen → 'Tax Setup' tab → 'Tax Region Setup' subtab.

2. Select the row that represents an existing Tax Region; OR,

3. Click the ‘Add’ button to add a new Tax Region.

4. Edit the Tax Region Name, Description, and Code.

5. Select the Tax Jurisdictions ('Tax Rates'), that apply to the Tax Region.

   1. Tax Jurisdictions are combined into Tax Regions, which usually represent a geographic area.

   2. A Tax Region will contain the location of the Point of Sale, or a Tax Nexus (in the case of Field Services), or the Customer Location to which a Taxable Product was delivered.

6. Click the ‘Save’ button to save changes and close the ‘Add / Edit Tax Region’ section; OR,

7. Click another row in the ‘Product Regions’ list to close the Add / Edit Tax Region’ section without saving.

(4.) How to Configure Tax Rates:

1. Navigate to the ‘Product Setup’ screen → ‘Tax Setup’ tab → ‘Tax Jurisdiction Setup’ subtab.

2. Select the row that represents the Tax Jurisdiction for which Tax Rates will be configured.

3. Add or Edit the Product Tax Categories that are applicable to the Tax Jurisdiction.

   1. Enter the Tax Rate as a percent; so, a 6% tax would be entered as 6.0000.

   2. Enter the Start Date and End Date that defines the Tax Rate Period.

      1. If an info dot is present, the Tax Rate has been used.

      2. Tax Rates that have been used can not be deleted.

      3. To edit a Tax Rate that has been used, click on the info dot to set the ‘End Date’ to the Last Used Date, then add the Product Tax Category with the Start Date equal to one day after the Last Used Date.

4. Click the ‘Save’ button to save changes and close the ‘Add / Edit Tax Jurisdiction’ section; OR,

5. Click another row in the ‘Product Tax Jurisdiction’ list to close the Add / Edit Tax Jurisdiction’ section without saving.

(5.) How to Configure the Default Tax Region for the Hospital:

1. Navigate to the ‘Hospital Setup’ screen → ‘Hospital Setup’ tab → ‘Billing Defaults’ section.

2. Select the ‘Default Tax Region’.

   1. The ‘Default Tax Region’ that is assigned to the Hospital will be used as the Tax Region on Orders when the Hospital Unit on the Order has not been assigned its own Default Tax Region.

   2. This provides the ability to apply the same Taxes for Tax Jurisdictions within the Tax Region in which the Hospital, and most of the Hospital Units, are located. If a Hospital Unit is located in a different Tax Region, with different Tax Jurisdictions, that Tax Region can be applied to just that Hospital Unit as it’s Default Tax Region.

(6.) How to Configure the Default Tax Region for a Hospital Unit:

1. Navigate to the ‘Hospital Setup’ screen → ‘Unit Setup’ tab.

2. Select the Hospital Unit.

3. Navigate to the ‘Unit Details’ tab.

4. Select the ‘Default Tax Region’.

   1. The ‘Default Tax Region’ that is assigned to the Hospital Unit will be used as the Tax Region on Orders based on the Hospital Unit on the Order.

   2. This provides the ability have Hospital Units that are located in different Tax Regions, and to apply Taxes for Tax Jurisdictions that apply to the location of the Hospital Unit.

(7.) How to Configure Taxes for Products and Services:

1. Navigate to the ‘Product Setup (Search)’ screen.

2. Search for the Product or Service.

3. Navigate to the ‘Product Info’ screen → ‘Product Details’ tab.

4. Select a Product Tax Category.

5. Using the ‘Price Calculator’,

6. Examine the Tax calculations based on the Tax Category, and Tax Region.

(8.) How Taxes are Applied to Order Items:

1. Navigate to the 'Order Management' screen.

2. Select the appropriate Tax Region.

3. The Taxes for the Order and Order Items will be displayed in various locations.

4. The individual Order Item Taxes are displayed in the transaction detail popup.