If your business makes sales and purchases, you’re probably very familiar with the concept of including tax on the transactions you conduct with your customers and suppliers, and you know how important it is to track these amounts carefully.

Moveware allows you to define different tax code to track different taxes. Each tax code represents a particular tax that is used to calculate tax on your transactions. Tax Codes are setup in Tax Codes which is available from the Moveware Administration menu. Common Tax Codes include VAT – Value Added Tax, GST Goods and Services Tax and NT – Not Reportable. In Tax Codes the general ledger code sub code for each tax type is also specified.

Whenever you enter a transaction that should be taxed, you’ll assign a specific code to each line item in the transaction. The tax rate for that Tax code then will be multiplied by the amount of the line item to determine the tax amount.

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Tax on Transactions

There are several windows where a tax can be entered:

• Invoicing

• Purchase Invoice

• Costing

• Quick Payment

• Quick Deposit

• General Journals

Each of these windows has a Tax column or field where a tax code can be entered. The default Tax Code that appears in the tax column is set in the line item that is being entered, i.e. the Job Product, Supplier Product or General Ledger Sub Code. Be sure that the code that appears is the correct one for your current situation. If it is not change the tax code on each line item as required and ensure that the Inclusive and Exclusive Tax amounts are correct.

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Tax in Journals

As transactions are generate in Moveware and the corresponding journal is created an entry will be made in the journal for the tax amount. The general ledger code for the tax is determined from the Taxcode table entry for the Tax type where the tax sub code is specified.

In this way Moveware records all tax from transactions into the general ledger codes as specified.

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Tax Reporting

The Tax Reporting Requirements will vary according to each companies circumstances and the region they operate in. The main reports that are useful in keeping track of tax liabilities include:

Report	Description	Notes
Tax Summary	Provides a summary and detailed listing of all transactions that include tax. The report is grouped by Tax Type and shows transactions by Sales and Purchases
Transactions	Select the Tax general ledger account to view all transactions relating to that account.
BAS Summary	Able to provide a BAS summary if the system is setup accordingly	For Australia only

Moveware recommends setting up a Supplier for the relevant Taxation body to record Tax Payments made. Supplier Purchases should be entered to debit the appropriate general ledger tax account.

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