Define tax rates to build the second level of tax coding. Before creating a tax rate, create tax rate types on the Tax Rate Type form.
Create a tax rate, such as "SC TAX" to represent a South Carolina state tax, and then associate that tax rate with a tax rate type, such as a sales or excise tax rate type. The combination of a tax rate type and a tax rate represent the definition of a tax rate code. You can also indicate whether to include the tax rate code in stock valuation.
To define tax rates:
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Select Materials > Setup > Tax Rates.
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Click New Record.
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Specify this information:
Tax Rate - Specify a unique code identifying the tax rate, and then specify a description of the tax rate in the adjacent field.
Type - Specify the type of tax rate.
Include Part Taxes in Stock Value - Select to include tax in inventory calculations of stock value.
Include Service Taxes in WO Cost - Select to include tax in service calculations of work order costs.
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Click Save Record.