Setting Up Tax Codes: Australia

When setting up tax codes in HQ Tax codes for Australia, you only need to create single-level codes. Multi-level codes are unnecessary.

When setting up a single-level tax code, define the rate at which the system calculates the tax using the New field in the Single Level Rates section. If you specify both an old and new rate, the Effective Date field determines when the old rate expires and the new rate goes into effect. You must also specify a tax liability account in the Credit GL Account field. Additionally, enter the JC tax phase and cost type in the JC Tax Phase and JC Cost Type fields, if you need to post taxes to a specific phase code and/or cost type. The following steps will guide you through setting GL distributions for the tax code.
  1. Select the Add'l Options tab on the HQ Tax Codes form.
  2. Check the Value Added Tax (VAT) box.
  3. Check the Federal Goods & Services Tax (GST) box for codes tracking GST.
  4. If you want to track retainage tax liabilities separate from standard tax liabilities, enter a GL account in the Credit GL Ret Account field.
  5. Check the Expense Tax Paid box.
    The system enables the Credit GL Retention GST Acct, Debit GL Account and Debit GL Ret Account fields.
  6. Enter a GL account to track retainage ITC payables in the Credit GL Retention GST Acct field.
  7. Enter a GL account to track standard ITC amounts in the Debit GL Account field.
  8. Enter a GL account in the Debit GL Ret Account field. This account is the retainage ITC contra account.
  9. Save the record as normal.