Configure sales tax authorities
Companies pay and report taxes to authorities that determine when and where the company pays its taxes. Tax authorities can be countries, states, regions, and cities.
You can pay sales tax through a vendor or directly to the sales tax authority.
To pay sales tax through a vendor, specify the vendor's account number together with the correct sales tax authority. The system transfers sales tax payments to the vendor that's making the payment. To make payments to the sales tax authority, enter the sales tax authority's address information. If you pay through the vendor, the company can use its standard payment routines to pay the sales tax authority on time.
If you haven't set up the tax authority as a vendor, you need to prepare a manual payment to the tax authority on the appropriate due date to avoid penalties by the tax authorities.
Select the rounding type to use for rounding the sales tax amount in the Rounding form list:
Normal - To the right of the specified unit, round up numbers five and higher, and round down numbers lower than five.
Downward - Round down any number to the right of the specified unit.
Rounding-up - Round up any number adjacent to the specified unit.
Own advantage - Round any number to the company's advantage. When the system settles sales tax, the total sales tax amount rounds automatically according to the setup on the sales tax authority.
Create as many sales tax authorities as needed, each with specific address, contact information, and report layout. The company can pay sales taxes to the authority directly or through a created vendor account for the sales tax authority.
The following video shows how to set up sales tax authorities.