Build Tax Authority Master, on the Accounts Receivable Set-up (SER) menu, is used to create taxing authorities which can combine more than one tax code to determine the sales tax during invoicing.

Remember, each tax code must be set up separately in Tax Code Maintenance first and then set up again in this option to create the taxing authority master.

Example: Specialty Advertising Co. has created both the Ohio State tax code and the Summit County Sales tax code, and now need to build the Tax Authority Master which has both.  They set this up as OHS and it is composed of the Ohio State sales tax on line 1 and the Summit County sales tax on line 2.

This is the Tax Authority Master Code which is set up in the M=More Data Screen under the Customer Master File.

How To Use Tax Authorities

Most of Specialty Advertising's customer base resides in Ohio.  The Tax Authority Master Code OHS Ohio State Sales Tax would be the tax authority set up in the Customer Master File Creation Defaults.  Each time a customer is entered, the Tax Authority Master Code can be modified independently in the Customer Master File Maintenance M=More Data Screen, if for example, the customer was non-taxable or located in Chicago, Illinois and is required to pay a different sales tax such as Illinois State Tax.

NOTE: The Tax Authority can be overridden in Order Invoicing and Order Entry.  You also can specify the taxable sales amount, if for example line items such as a setup or artwork charge are non-taxable sales in your locality.