Often times when a tax rate changes, the new rate must apply to RAs that close on or after the effective date. Because a tax rate is applied to each RA at the time of Open, this means that all RAs that are open as of the effective date must be updated with the new tax rate.
An example will illustrate this: Assume the tax rate is changing from 10% to 11% effective July 1. The new rate should apply not only to RAs that OPEN as of July 1 or later, but also to RAs that CLOSE as of July 1 or later. This means that all RAs that are open at the close of business June must have their tax rate changed from 10% to 11%. In this example, this program must be run sometime after the close of business June 30 and before business is started July 1.
This program is used expressly for this situation.
CAUTION! All other users must be logged out of the system. If an open RA is being accessed on someone's screen when this program is run, it will hang with the "Record in use at another station" message until that RA is released. It is your responsibility to make sure all users are logged out.
To access this program: To access the program, type CHGTAX (RET) at any menu "OPTION:" field or the appropriate number on the Accounting Control Files Menu. The screen will then display:
| OPTION: __ CHANGE TAX RATE 1 Option code GST 2 Location ALL 3 New Rate% 1DO UPDATE2 3ERASE 4 5 6 7HELP 8 |
Enter data as follows:
|
1. OPTION CODE |
Although this field defaults to "GST", any percentage option code can be entered, such as "TAX". EXAMPLE: Type TAX (RET) |
|
2. LOCATION |
If the change applies to ALL locations, press (RET). If it applies to a specific location, enter that Location Code. EXAMPLE: Press (RET) |
|
3. NEW RATE |
Enter the new percentage rate. EXAMPLE: Type 11.000 (RET) |
PRESS "F1" AT "OPTION:" TO BEGIN .
User tips:
A. More than one operating company
If there is more than one operating rental company, run this program in each company
B. RA's THAT ARE BATCH CLOSED AFTER THE EFFECTIVE DATE
RA'S that are open as of the rate change effective date will have their tax rate changed. When a RA is batch closed with a date that is EARLIER than the date of the rate change, there may be a question as to which rate should apply to the RA. Check with your taxing authority regarding which tax rate should be in effect in this situation and edit the tax if necessary.