The Taxes created in this area need to be attached to Transaction Codes in order to calculate in OA. Transaction Codes are reviewed in the article Setting up Transaction Codes in the Owner's Accounting manual.
Adding a Tax
Under the Configuration Settings Menu, select the Taxes submenu.
Next, click on the New button to open the tax field screen.
Enter the following information:
- Code - enter a code for the tax. This code can be up to 7 characters long, have no spaces & be all CAPS. (ie: Sales Tax code will be ST)
- Description - enter the tax code description. The owner will see this description on their Statements if you choose to Show Expense Detail in your Statement Configuration Settings. (ie: Sales Tax)
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Type – the tax type will depend on what type of tax is being created
Tax – This charges the owner a tax on the service that is being provided to the owner, the same as charging guests that stay at the hotel. In most cases, the government is expecting the property management company to submit taxes based on the services being charged to the guest.
Collected Tax – This is the tax that the Property Management Company has taken from the guest on the room revenue. This will show up in a separate section called “Taxes” on the owner statement, and will show as a positive amount being paid out to the owner. The owner will then be required to remit this tax to the Government. IMPORTANT NOTE: This feature does not deduct collected taxes from the Tax total found on the PMS Reports. Please keep this in mind when submitting taxes to the government.
Withholding Tax – This type of tax is typically used for Foreign Owners and is the income tax portion of the revenue generated on their unit that will need to be remitted to the government. This will show up in a separate section called Taxes, and is a deduction (negative amount) from the revenue made on a unit (it acts like an expense on the statement)
- Tax As – is the tax a percentage or an amount?
- Tax Amount – enter the amount of the tax
Click Save to save and finish, or Save & New to save and then enter another tax.
Modifying a Tax Rate
Modifying a Tax Rate will affect the current monthly statements. Therefore, if the tax change goes into affect in April for example, the March Statements must be closed out before modifying the Tax Rate.
Under the Configuration Settings menu, select the Taxes submenu.
Select the Edit button next to the tax to be modified.
Update the Tax Amount to reflect the new tax rate. If necessary, change the Tax As from Percentage to Amount or vice-versa. Select Save to save changes.
Deleting a Tax
Once a Tax has been used in OA it cannot be deleted because of the history tied to the tax code. A Tax can only be deleted if it has never been used in OA.
Under the Configuration Settings Menu, select the Taxes submenu.
Select Delete next to the tax you wish to delete.
A message will appear asking you if you are sure you want to delete the Tax Code as it will be removed from all Transaction Codes. Select OK to continue. The Tax Code will now be removed from Owner Accounting.
