Managing Custom Tax Codes Sets

You can create a custom tax codes set that you can use with any number of tax returns. A custom tax codes set includes all system-defined tax codes for the tax product, plus any user-defined tax codes you add to it. More information about working with tax code sets is included in Managing the G/L Direct Tax Codes Grid.

Note: For information about assigning custom tax codes to tax returns, see Adding Custom Tax Codes to a Tax Return.

Two types of custom tax codes sets are provided:

• Custom Tax Codes Sets apply to a specific tax product and year. They are intended to be used in the setup procedure.
• Custom Specific Tax Codes apply to a specific tax product and a specific tax year. They can be added using the Tax Codes grid.

Creating, Editing, and Deleting Custom Tax Codes Sets

The Copy From Return function requires an open tax return that has been activated for G/L Direct.

To create, edit, or delete a custom tax codes set, do the following:

1. Open a tax return in Return Manager.
2. Click Custom Tax Codes in the Options group on the G/L Direct ribbon.
3. Select the tax product for the custom tax code set you want to create, edit, or delete.
4. Do one of the following:

Create a new tax code set

1. Click Add.
2. Enter a description for tax code set, and then click OK.
3. Enter the tax code information in the grid. See Managing Custom Tax Codes and Editing and Adding Tax Code Lines for detailed information about using the grid.
4. Close the Custom Tax Codes window. Your tax code information is saved automatically.

Edit an existing tax code set

1. Select the tax code set to edit.
2. Click Edit.
3. Make the needed changes in the grid. See Managing Custom Tax Codes and Editing and Adding Tax Code Lines for detailed information about using the grid.
4. Close the Custom Tax Codes window. Your tax code information is saved automatically.

Create a new tax code set by copying an existing one

1. Select the tax code set to copy.
2. Click Copy Selection.
3. Enter a description for the new tax code set, and then click OK.
4. Modify the tax code set information as needed. See Managing Custom Tax Codes and Editing and Adding Tax Code Lines for detailed information about using the grid.
5. Close the Custom Tax Codes window. Your tax code information is saved automatically.

Create an exact copy of the tax code set in the open return

Note: You must have performed a Trial Balance import into the return before you can perform this procedure.

1. Click Copy from Return.
2. Enter a description for the new tax code set, and then click OK.

Delete a tax code set

1. Select a tax code set to delete.
2. Click Delete.
3. Click Delete again on the confirmation window.

Managing Custom Tax Codes

The Custom Tax Codes - [Name of Tax Codes Set] grid allows you to review and manage custom tax codes. The grid displays the lines in a selected custom tax codes set and has its own ribbon. These custom tax codes are intended for use in multiple years.

Explain the ribbon commands on the Custom Tax Codes - [Name of Tax Codes Set] grid and on the right-click menu.

Editing and Adding Tax Code Lines

To edit custom tax codes in the grid, move the cursor to the desired line and column and make any desired changes. To add tax codes, move the cursor to the bottom, blank row and begin entering information for the new tax code. A new blank line is automatically created on the grid. Changes made on the grid are saved when you press Enter or move the cursor to another cell. There is not a Save or Cancel command.

Explain the columns in the Custom Tax Codes Set - [Name of Tax Codes Set] grid.

Column	Description
Tax Code	Displays the tax code. Editing is activated only for user-defined tax codes and only the four characters following the decimal. A suffix of .0000 is a master tax code and part of the standard tax code set. A suffix of .0000 cannot be edited or deleted. A suffix in the range from .0001 to .9899 is a user-defined tax code and can be edited or, if not used in tax journal entries, deleted. Suffixes in the range from .9900 to .9999 are reserved by the system and cannot be edited or deleted. If a tax code is not associated with an entity/property number, then the tax code must be unique in the return. If the tax code is related to an entity/property number, the combination of the tax code and the entity/property number must be unique in the return.
Entity/Property Number	If the assigned tax code is associated with an entity or property, this column displays the entity or property number. Examples of entities or properties include rentals, farms, and businesses. The list displays entity/property numbers previously defined for the corresponding tax code. If you are using standard tax codes and a tax return is not open, only the number 1 will be listed. If a tax return is open, all previously defined entity/property numbers will be listed. See Adding or Deleting an Entity/Property Number for more information.
Description	Displays the description of the tax code. User-defined tax code descriptions are optional and can be edited.
Sch.	Displays the tax return schedule corresponding to the tax code.
Line	Displays the return line corresponding to the tax code.
Acct. Type	Identifies the default account type of the tax code. The width of the cell does not display the entire account type description. Hover your mouse pointer over the cell to display the entire account type description.
Include in Transfer	Determines whether the tax return trial balance calculated for a tax code will be transferred to its corresponding tax line on the return. The Include in Transfer setting of Summary and Detail tax code types is determined by the setting of the Master tax code of the same prefix (and entity/property number, if applicable). Note: User-defined Summary tax codes do not generate their own data transfer records. Instead, their balances are added to the balance of the Master tax code of the same prefix (and entity/property number, if applicable).
No. of Accounts	Displays the number of accounts in the return assigned to the tax code.
Summary or Detail	Displays Summary, Detail, or Subscript, depending on the tax code type.
Sch. M-3	Displays Temporary or Permanent to describe the type of expanded processing available. The display is blank when no expanded processing is available. If expanded processing is available, you can click a cell to change the expanded processing setting. The Schedule M-3 setting of a Master tax code (tax code suffix .0000) provides the default value for custom tax codes you create (suffixes in the range .0001-.9899). Once created, you can change the Schedule M-3 setting. If the setting of the Master tax code is later changed, this action will not affect existing user-defined tax codes with the same prefix. It will only affect the values of new user-defined tax codes.
M-3 Option	If applicable, allows you to assign revenue and expense account data with a tax code and Schedule M-3 option code. A dash symbol indicates the system default is in effect for the option. You can click a cell to change the M-3 option setting. The M-3 options allow you to route your data to specific lines on Schedule M-3.
Option 1	If applicable, allows you to select additional values for tax line items. A dash symbol indicates that the system default is in effect for the option. You can click a cell to change the setting.
Option 2	If applicable, allows you to select additional data options to Option 1 values. A dash symbol indicates that the system default is in effect for the option. You can click a cell to change the setting.

Managing Custom Specific Tax Codes

The Custom Specific Tax Codes grid allows you to review and manage custom specific tax codes. The grid displays tax code lines and has its own ribbon.

The ribbon, right-click menu, editing methods, and columns in the grid are identical to working with custom tax codes. See Managing Custom Tax Codes Sets earlier in this topic for more information.