Invoice Tax Codes Admin Screen

The Invoice Tax Codes admin screen allows administrators to create and manage tax codes for use in Chrome River INVOICE Value Added Tax (VAT) calculations.

Click ADMIN SETTINGS > RATES & LOCATIONS > INVOICE TAX CODES.

Add a Tax Code

Click the plus button to create a new invoice tax code.

Fill in the appropriate fields and click SAVE.

• Tax Code ID: Must correspond to the tax code required by your accounting system.
• Tax Code Label: Description of the code.
• Status: Determines whether the code is active or inactive. Click it to change the status.
• Tax Recoverable: Check if this tax code is used to calculate recoverable tax amounts.
• Parent ID: Select to make the current code a "child" (see below) of the "parent" code in the drop-down.
• Is Tax on Tax: Check if this is a child tax code (see below) that is calculated on the base amount plus the parent tax amount.
• 0% Tax Code: Specifies the 0%-rated tax code that will be defaulted into the invoice along with the default tax code tied to the vendor address.
• Filter Text 1 and 2: Reserved for future use.
• UDF 1–5: User-defined data fields.

Parent and Child Tax Rates

Certain countries may have multiple rates on a single tax code. For example, in Canada, there may be one rate for Federal tax and one for Provincial tax. In this case, you can set up the Federal tax as the parent code and the Provincial tax as the child code.

1. Add the parent tax code first. Then create the child tax as a separate code and enter the parent's Tax Code ID in the Parent ID field on the child code.

2. Once you have saved a new rate, you must set the dates in which it is active. See Effective Rates, below.

3. Finally, edit the associated Vendor Address record via the Invoice Vendor Admin Screen and, in the Default Tax Code 1 field, enter the Tax Code ID of the parent rate.

Effective Rates

Each tax code has an Effective Rates list that allows you to set rates based on date. This enables the system to automatically calculate the correct tax rate based on the date of the invoice.

Click ADD EFFECTIVE RATE to create a new tax rate.

Enter the Start Date and Tax Rate %, then click SAVE.

To edit an effective rate, click the pencil icon.

Edit a Tax Code

Select a tax code from the list and click EDIT in the preview.

To change the status of a tax code, click the ACTIVE or INACTIVE status button.

Make the desired changes and click SAVE.