Add sales tax code

Article • 4/27/2026 • 2 min read

You create sales tax codes to use when you collect sales taxes from your customers or prospects and when your vendors pay taxes on items they purchase from you.

To add sales tax code

  1. Open the Sales Tax (SLTAX) page.

    1. Select Utilities > Company Setup > Finance > Sales Tax*.

    Or

    1. Search for SLTAX or Sales Tax in the Navigation box and then select Sales Tax*.

    The Sales Tax (SLTAX) page appears.

  2. On the toolbar, click New.

    Or click Copy to base the new tax code on the existing data displayed on the page.

  3. Enter the tax code information:

    1. In the Tax Code box, enter a code for the sales tax.
    2. In the Description box, enter a description for the code.
    3. In the Type dropdown, enter the type of tax you are entering: State, County, Federal, Country, Local, or VAT (Value Added Tax).

  4. Set the tax rate and chart of accounts information:

    1. In the Tax Rate (%) field, enter the tax rate percentage.

      1. In the Calculation Type dropdown, select the method used to calculate the tax from the list.

      ≡ Select Additive to simply tax the cost of the item.

      ≡ Select Cumulative to calculate tax on the item cost plus any taxes on that item up to this point.

    2. Click the AR Tax Account lookup reference. Select the Accounts Receivable sales tax account and click Select.

    3. Click the AP Tax Account lookup reference. Select the Accounts Payable sales tax account and click Select.

  5. In the Effective Dates box, enter the date the tax rate becomes effective.

    » Enter the effective date if you are entering a new rate for an existing sales tax code. The **Tax Code** and **Description** on both records is exactly the same. Made2Manage calculates the effective *To* date, and it cannot be modified. If you are entering a new tax, you need not type the effective date.

» When you save the new record, the system calculates an effective *To* date for the original record. This date will be the day prior to the start date of the new tax rate. The system determines the tax rate to use on an **AP/AR** invoice by matching the invoice tax point date to the effective sales tax date range.

  6. On the toolbar, click Save to save the sales tax code.