Set up tax

Modified on Tue, 17 Feb at 3:55 AM

Introduction

Schools are subject to paying tax on financial transactions. It depends on the country's tax codes as per tax regulations.

The government uses tax codes to determine how much tax you must pay. Zunia uses these tax codes to tax every transaction recorded in a general ledger.

When the Zunia onboarding team creates a financial entity; this populates a default tax table.

This guide shows you how to set up the tax codes to apply to school fees.

Set up tax in a general ledger

To set up tax, go to your finance entity and select Finance settings > General ledger settings, then select Tax.

To add tax, select Add.

In Add tax, enter the details:

Field	Description
Code	This is 5-digits long.
Description	Details about the tax you’re about to add.
Percentage	Select the percentage of tax.
Tax reporting	Select what sort of tax it is. This determines whether the tax amount is an income or an expense.
Sort order	This is the order in which your tax record displays on the tax table.

When done, select Save.
You’ve now added a new tax.
A tax amount is automatically calculated and populated. You can't edit this tax amount.

This creates a tax control transaction and links to the source transaction. Each general ledger transaction can only have one linked tax transaction.

You can use the 3 dots icon to edit, delete, or set a tax as inactive. Note: You can use only an active tax code. If you have an inactive tax code, go to Actions > Set as Active to activate the tax record again.