Steps to Change a FundFor Kansas organizations only, follow the steps below to set up and calculate sales tax for Activity Funds when entering cash receipts in General Ledger (and Web Link, if applicable).
Step 1: Verify Sales Tax Revenue Account Defined in Chart of Accounts
Verify each applicable Activity Fund has a sales tax revenue account defined within the Chart of Accounts. (Tip: If needed, add a new account number for sales taxes revenue for an applicable Activity Fund, using 8 as the Account Type ID and an unreserved fund balance account as the Yearly Post Account.)
Step 2: Complete Sales Tax Revenue Account Field in Fund File
Complete the Sales Tax Revenue Account field in the Fund File for each applicable Activity Fund.
Step 3: Define Sale Taxes
Define the necessary sales taxes with the applicable rate(s) in the Sales Tax File. There must be at least one sales tax defined.
Step 4: Utilize Sales Taxes When Entering Cash Receipts
When entering cash receipts for Activity Funds, if a detail line on a cash receipt is applicable to sales tax, select the Subject to Sales Tax field and complete the Sales Tax ID field. After entering the cash receipts, print a listing to verify and then post the batch. During the posting process, the system will calculate the appropriate amount of sales tax for the detail lines with the Subject to Sales Tax field selected (using the rate(s) defined for the designated sales tax for a detail line), and post additional entries for the amount of the sales tax, along with the normal cash receipt entries; the normal cash receipt entries include a credit to the specified revenue account for the amount of the detail line and a debit to the specified cash account, and the additional entries for sales tax include an entry for the negative sales tax amount to the specified revenue account number (as entered for the detail line) and an entry for the positive sales tax amount to the sales tax revenue account for the applicable fund. For example, using a sales tax rate of 6%, if a detail line of $100 for account number 72 1790 530 was entered with the Subject to Sales Tax field selected, the system will calculate the sales tax of $5.66 (which is 6% of $94.34, and $5.66 + $94.34 = $100), and post the normal cash receipt entries of $100 credit to 72 1790 530 and $100 debit to the cash account (i.e. 72 101), along with the additional entries for sales tax of - $5.66 to account number 72 1790 530 and $5.66 to the sales tax revenue account for Fund 72 (i.e. 72 1930).
Tip: After posting a batch of cash receipts, print the Cash Receipt Listing - Sales Tax report (accessed from the Reports menu on the General Ledger screen, and then Data Entry Reports) for a batch (or month) in order to view all the information for the posted cash receipts, including the sales tax.
Note: When the sales tax must be paid, print an account inquiry report for the sales tax revenue account (or the Cash Receipt Listing - Sales Tax report) to determine the total amount of sales tax to pay, and then write a check in Accounts Payable, by entering an invoice using the sales tax revenue account number in the detail line of the invoice and completing a check cycle as normal.