The following steps will explain in detail how to add a new Tax Component for Sales Tax you collect.
1. First open the Tax Codes [Sales] form and then click the New button to clear the form and move your cursor to the Tax ID field.
2. Enter a Tax ID, which can be up to 15 alphanumeric characters long. You should try and think of a an easy to use ID for your sales tax code. If your sales tax was for the City of Evanston then you might want to use something like "EVNST". When you have finished entering data for each field, press the TAB or ENTER key to move your cursor to the next field.
3. Next enter a Description for the tax component. This field is primarily used to describe your Tax ID. In the example of "EVNST" the description would be something like "City of Evanston Sales Tax".
4. Enter a Tax Rate, which would be the sales tax rate you want to setup for the Tax ID.
5. The Account ID field is used to assign an Account ID from the Chart of Accounts form to track the sales tax collected. Click the drop down button (the box with arrow head pointing down) next to this field to open the Chart of Accounts form where you can add or edit an Account ID.