Configure Sales Tax
Overview
GoldFinch Sales Tax V2 offers significant improvements over V1, providing more flexibility in assigning tax accounts, tracking tax rates, and generating reports by tax jurisdiction.
Key Features of Sales Tax V2
Assign Separate Tax Accounts:
Sales Tax and Purchase Tax accounts can be assigned for each tax jurisdiction.
Flexible Tax Details:
Reuse the same Tax Jurisdiction across different Tax Areas.
Track Detailed Tax Information:
Track individual tax rates and amounts by jurisdiction on sales lines and invoices.
Post GL Entries by Tax Jurisdiction:
Sales Tax GL Entries are posted by each tax jurisdiction.
Print Tax Information on Documents:
Sales Tax by jurisdiction is printed on Sales Order PDFs and Sales Invoice PDFs.
Sales Tax Reporting:
Run reports to view sales tax liability by jurisdiction (e.g., report GF2030).
Steps to Enable Sales Tax V2
Turn on Sales Tax V2:
Navigate to Custom Settings → System Settings.
Create a new parameter named SalesTaxV2 and set the value to True.
Update Page Layouts (if converting from Sales Tax V1):
On the Tax Area page, remove the Tax Jurisdiction related list and add the Tax Area Line2 related list.
Ensure the Tax Jurisdiction v2 field appears on the Tax Area Line page.
On the Tax Jurisdiction v2 page, ensure the Tax Details related list appears.
Update the Tax Detail page by removing the Tax Jurisdiction and Tax Area fields and adding the Tax Jurisdiction v2 field.
Default "NoTax" Setups
For companies that do not charge sales tax (B2B wholesalers or B2C e-commerce platforms):
Assign "NoTax" as the Tax Area for all customers and alternate shipping addresses.
Assign "NoTax" as the Tax Group for all items.
If you use an e-commerce platform, set up the tax in the platform and download it as a separate line item via the e-commerce integration module.
Setting Up Taxable Sales Tax Configurations
Set up Tax Areas
Open the App Launcher and search for Tax Areas.
Click New to create a Tax Area that groups multiple Tax Jurisdictions.
Set up Tax Jurisdictions v2
Open the App Launcher and search for Tax Jurisdiction v2.
Click New to create a new Tax Jurisdiction and assign Sales Tax and Purchase Tax accounts.
If you charge Sales Tax for a Jurisdiction, the Account Sales Tax must be filled in for that jurisdiction. If you charge Purchase Tax for a Jurisdiction, the Account Purchase Tax must be filled in for that jurisdiction.
Configure Tax Details
In the Tax Details section of Tax Jurisdiction v2, click New to create a new Tax Detail record.
Assign a Tax Group (Material, Labor, Freight, or No Tax) and enter the tax rate.
Assign Tax Jurisdictions to Tax Areas
Open the Tax Area and navigate to Tax Area Line2 to add new Tax Area Lines.
Each Tax Area Line is associated with a Tax Jurisdiction.
Assigning Tax Areas and Tax Groups
Assign Tax Area to Accounts:
Open the App Launcher and search for Accounts.
Assign the Tax Area to the customer account in the GoldFinch ERP section.
Mark the account as Tax Liable if applicable.
Assign Tax Area to Alternate Shipping Addresses:
In the Alternate Shipping section of the account, assign a Tax Area to the alternate shipping address and mark it as Tax Liable if needed.
Assign Tax Group to Items:
Search for Items in the App Launcher and assign a Tax Group (Material, Labor, Freight, or No Tax) to the item.
Calculating Sales Tax on Sales Orders
Tax Area and Tax Liable status are automatically copied from the customer account to the Sales Order.
If an alternate shipping address is used, the Tax Area and Tax Liable for that address will be used instead.
Tax Group for items is copied to the sales line.
GoldFinch calculates the sales tax upon saving the order, based on Tax Area, Tax Group, and the Tax Liable flag.
The same logic applies to Sales Quotes and Sales Invoices.
Printing and Reporting
Print Sales Tax by Jurisdiction:
Sales tax by jurisdiction is printed on Sales Order PDFs and Sales Invoice PDFs.
Run Sales Tax Reports:
Use the GF2030 Sales Tax by Tax Jurisdiction report to review sales tax liabilities by jurisdiction.
By following these steps, you can enable and configure Sales Tax V2 in GoldFinch for improved sales tax management and reporting.