The general Tax & Service Charge effects of a transaction are a (combined) function of the interaction of:
These are further tempered by the interplay of:
Section Price-Level Tax & Service Charge Rules (which is where the Accounting Effects of the Tax & Service Charge are derived)
An Item's individual eligibility for Taxation & Service Chargeability
This section of the Document discusses the Item Tax & Service Charge Rules Setups.
From the F/B Inventory Setups Menu (Quick-Jump IIS -- or alternatively Retail Inventory Setups, Quick-Jump ISS), select Item Tax & Service-Charge Setup (TSCS):
Below is an Item Tax & Service Charge Setup screen -- for a 'Standard' Item Rule (STAND) --involving the 'Standard' Company Tax & Service Charge Rule Group:
Item Tax & Service Charge Rules are defined per-Section -- in this example, for the Dining Room.
Notice that 'County Tax' is set to 'Yes' for active.
Notice that 'State Tax' is set to 'Yes' for active.
Notice that 'Service Charge' is set to 'Yes' for active.
Notice that 'Special Tip Service Charge' is set to 'Inclusive'.
Item Tax & Service Charge Rule components can (optionally) have Thresholds -- of two types:
Check Minimum Value - the Ticket Sub-Total value must be above the specified Minimum before the Tax or Service Charge 'kicks in'.
Start Amount Active - the Ticket Sub-Total must be ???
Below is an example of an Item Inclusive-Tax situation:
Section Price Level Tax & Service Charges -
Below is the Section (Dining Room) Price Level (and Tax & Service Charge affiliation) screen (set up within Company Setup - Sections):
Below is the screen for the Price Level 'Dinner':
Note that the Accounting Effect of each respective element of Tax or Service Charge is defined by aligning the specific element with the appropriate G/L Distribution Code.
In the above example, note that County Tax is 'Active' -- and has a G/L Distribution Code of 'TAX'.
Below is the associated Distribution Code screens for TAX:
In turn, below is the Distribution Code Setup screen for the Dining Room Section:
Item's Tax & Service Charge Rule -
Below is the POS Item Setup screen for a Wine Item:
Notice the 'Tax & Service Charges' Item Rule of 'Standard'.
Combined Accounting Effect (for County Tax):
So, in other words, the County Tax (at 4.25%) for a bottle of Beringer Merlot sold at Dinner in the Dining Room will be booked to Organization 00 and Account 22000 (Sales Tax Liability).