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New Tax Code Dialog

Number Screen Element Description
Tax Code

Enter a code to identify the tax. The code can be 1 to 4 characters and may be changed as necessary.


Enter a description for the tax code. Descriptions may be up to 35 characters long.

Tax Rate (%)

Enter the applicable rate for the tax.

Account No.

Enter or select the account number from the drop-down list to assign tax to an account number. To access this list quickly, press F8.

Note: If the tax rate is changed, all existing journal or adjusting entries using the tax code will be updated for the new amount. If you do not want this to happen, create a new unique tax code for the new amount.

Allow manual tax amount override in journals

Select to allow manual tax amount to be overridden in journals. If selected, the following rules apply:

Change made Result
Amount in tax column Working Papers adjusts the period amount for the difference, and the Net amount is not changed. There is no automatic recalculation of the period amount and Net based on the original percentage of the tax code. The tax amount updates the second tax record.
Amount in net column Working Papers leaves the tax amount the same and changes the period amount to balance.
Period amount Working Papers checks to see if the previous tax amount has been overridden (based on percentage of the previous period amount) and, if so, the tax amount remains the same and the NET amount is recalculated to balance the line.

Note: When a new tax code (TAX_ID) is selected from the list, the Tax amount is automatically recalculated based on the percentage of that Tax Id, and the period balance is recalculated.