Mapping Tax Codes (Sage 50 CA)

Tax Codes

In order to allow for the proper calculation of tax in both Manage and Sage 50 Canada, you need to map the Tax Code you have set up in Manage to the tax code you have set up in Sage 50 Canada. 

Multi-Level Tax Setup

Manage supports up to 5 levels of tax on a single tax setup. The following illustrates an example of a 5 tiered tax. It is important to note that the “Tax Code” and “Tax Code Xref” fields (selected in red) are 2 characters in length. This is a requirement of the fields that these values map to in Sage 50 Canada.

The Tax Code and all of the Tax Code Xref values should be the same when setting up your Manage tax. It is also important to note that the tax rate for each level is a decimal value. When creating your corresponding tax in Sage 50 Canada, the tax rate will be the percentage equivalent.

To create the corresponding 5 level tax in Sage 50 Canada, you must first establish each level of the tax. To do so go to Setup > Settings > Company > Sales Tax > Taxes. The “Tax” in Sage 50 Canada must be consistent with the Manage “Agency Xref” for each level of the tax being created. The green selected values below match the green selected values in the Manage illustration.

After a Sage 50 Canada “Tax” has been created for each Manage tax level’s “Agency Xref”, a Sage 50 Canada “Tax Code” can be created. To do so, go to Setup > Settings > Company > Sales Taxes > Tax Codes. Click on the Code column beneath the “No Tax” Description record to create a new Tax Code. The Sage 50 Canada “Code” must be consistent with the Manage “Tax Code” and “Tax Code Xref” values. The red selected value below matches the red selected values in the Manage illustration.

Double click on the new Sage 50 Canada “Code” to open the “Tax Code Details” interface. This is where you will be able to establish the tax levels for your tax code.

In the “Tax” column, click on the magnifying glass to select a tax. For each Tax set the percentage value equivalent of Manage’s matching “Agency Xref” decimal value tax rate. (e.g. If Manage tax rate is .01, Sage 50 Canada percent equivalent is 1).

Single Level Tax Setup

If you need to establish only a single level tax setup, follow the steps for the multi-level tax setup, but only create a Level 1 tax in Manage. In Sage 50 Canada create only 1 “Tax” to assign to a “Tax Code.”

PST on GST Tax Setup

If you need to establish a tax on tax configuration, you can do so by configuring a 2 level tax setup in Manage. You will need to check the “Canada: Calculate PST on GST?” checkbox to enable the tax on tax calculation. When this option is checked, the 2nd level tax will apply to the total after the 1st tax has been applied to an invoice.

To configure the same tax setup to map to in Sage 50 Canada, follow the steps outlined for the multi-level tax setup. First create your Manage level 2 tax in Sage 50 Canada. When defining the Manage level 1 tax, in this case “GST” as a “Tax” in Sage 50 Canada, click on the “No” in the column “Is this Tax taxable” for the “GST” record.

This will open the “Taxable Tax List” window where you can select which tax is going to tax your tax. Click on the “Charge on GST” column for the tax record you would like to select. In this case PST. 

A checkbox will appear. Click Ok to save and close the “Taxable Tax List” window.

The “Is this Tax taxable?” column for your tax should say “Yes” when the “Taxable Tax List” closes. This setting will calculate PST on GST the same as Manage. Continue establishing your tax setup as outlined in the Multi-Level Tax Setup section to finish establishing your PST on GST Tax Setup.

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