How to configure sales tax rates and codes

A Firm Admin sets up taxes after finance or a tax adviser decides the treatment, rate, and effective date. Review the tax on a draft document before sales or billing uses it.

Before you start

• Access: Firm Admin can reach tax setup through Setup.
• Where: In the correct entity, open Setup > Taxes > Taxes.

Create the tax and its rate

1. Review existing taxes, then select Create New Tax. Enter the approved name, type, jurisdiction, and treatment, and save. Versa assigns a liability account automatically.
2. Open the tax's edit page. Under Tax Rates, enter the approved rate and effective date, then select Save Tax Rate. Confirm that the intended rate appears.
3. Review the assigned liability account with finance. If it must change, the page shows either Create Dedicated Account or Replace Tax Liability Account. Replacing the account moves existing posted tax transactions to the new account, so approve that change before using it.
4. Review a representative draft sales document. Check its tax and calculated amount against the approved treatment before sending or posting it.
5. Tell sales and billing when the rate applies and which open documents need review. Do not assume a new rate changes finalized transactions.

If you use tax codes

Open Setup > Taxes > Tax Codes. Create or edit a code, give it a clear description, and select its taxes or non-taxable reason. Check that the intended code appears on a draft document.

If you don't see what you expect

• Tax Codes is missing: Have an administrator enable tax codes under Setup > Taxes > Tax Settings.
• Controls are read-only or Create New Tax opens an empty panel: Check whether taxes are shared across entities. Maintain them from the designated entity.
• The document amount differs: Check its date, jurisdiction, taxable item, tax code, and current rate with finance before changing the rule.