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Account Tax Categories

Last Updated: Aug 19, 2020

Account Tax Categories are configured in Setup / Finance / Taxes / Account Tax Categories

Overview

Account tax categories are used to apply account specific taxes (business, residential, etc.) to transactions on specific accounts.

In order to apply account specific taxes account tax categories are configured on both tax codes and on accounts. When the system looks for a tax code in order to tax a transaction related to an account, it will select from the tax codes that are configured with the same account tax category that is configured on the account. If multiple tax codes exist with the same account tax category the system will compare the other settings in the tax codes to the account in order to select the best tax code to use. The system will not select tax codes which have account tax categories that do not match the account's account tax category (i.e. mismatched tax codes are ignored). For more information on tax code selection behavior see the tax codes help.

Prerequisites

Account tax categories can be setup immediately, there are no prerequisite configuration steps.

Account Tax Categories Panel

The Account Tax Categories panel on the left of this screen allows you to select existing categories to view and edit on the Edit Category panel to the right. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.

Actions

Icon

Description

Deletes the category if not in use

Adds a new account tax category

Edit Category Panel

The information in this panel reflects the currently selected category. From here you can change the account tax category details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).

Category Fields:

  • Name: a descriptive name for the account specific category, e.g. 'Business'

References tab

This section displays where the selected account tax category is in use. By default the reference data is displayed in a summary format, however the Entity drop down field can be used to view the exact entities that the account tax category is configured on.