Tax code 0 and tax code 1 should always be set up properly (including a description, input tax percentage and account and an output tax percentage and account). If not set up properly, Fincon Accounting will prohibit the user from entering and performing various functions. Tax code 0 and tax code 1 are therefore the minimum amount of tax codes that should be set up properly in Fincon Accounting.
Watch this video to see how to add a new tax code or follow the steps below it.
Navigate to the correct window
- Navigate to System / Tax Codes.
Add the tax code
- Add a new tax code by clicking in the next available blank DESCRIPTION line, and typing the desired description.
- Add the desired input tax percentage in the relevant field in the % column of the INPUT TAX group.
- Add the ledger account where the input tax portion of a transaction will be posted when the particular tax code is used, in the ACCOUNT column of the INPUT TAX group.
- Add the desired output tax percentage in the relevant field in the % column of the OUTPUT TAX group.
- Add the ledger account where the output tax portion of a transaction will be posted when the particular tax code is used, in the ACCOUNT column of the OUTPUT TAX group.
If a ledger account is typed under the ACCOUNT column of either the INPUT TAX or OUTPUT TAX group, that has not been created yet, the following message should appear:
Invalid account number.
The options are then to:
Re-enter – re-enter the correct ledger account number
Search – search for existing ledger accounts
Create Ledger – create the desired ledger from scratch
Invalid account number.
The options are then to:
Re-enter – re-enter the correct ledger account number
Search – search for existing ledger accounts
Create Ledger – create the desired ledger from scratch
Save the tax code
- Click the Accept button.