There is no Accounts Receivable clearing account in Service Manager as Revenue transactions are posted directly by Accounts Receivable to the General Ledger. That is, Accounts Receivable deals with all Taxation and Realized/Unrealized Gain issues related to accounting transactions. Refer to the Sage 300 Accounts Receivable documentation for more information on these accounts.

Service Manager obtains its Tax information from the Accounts Receivable Master Customer Record. This record stores the Tax Group and Tax Class information for the Customer.

There is also an option in the Service Manager Master Site Record to override the Customer Tax Group. This feature is invaluable if you have many Sites in different Tax Jurisdictions billing to a Head Office that is located in another Tax Jurisdiction.

You are able to override Tax Classes for a Tax Authority in the Header of a Document or at Detail Line level.

If you click the Document Entry toolbar icon, you can change the Tax Class in an Authority for the entire Document. Be sure to accept the change and then click [Calculate] or click the Document Entry toolbar icon to recalculate tax.

Service Codes or Inventory Items can have their Tax Class override set individually in the master file for the Service Record (in Service Manager) or similarly in the master file for the Inventory Item (in Inventory Control).

Tax Calculation Methods for Agreements

Please note that there are three methods available to you to calculate Tax in an Agreement in Service Manager.

Tax Based on Sub Total

This method effectively means that the Customer is charged for the Tax component of the work performed. That is, charges applied to the Job may be covered by the Agreement, but the Tax component of those charges is not. This is not a commonly used method, but is available as an option.

Tax Based on Sub Total less Covered Amount

This method is the most commonly deployed. Tax is calculated based on the value of the Invoice. For countries that have a Goods and Services tax, this is the method we recommend as tax will be zero if the value of the invoice is zero. i.e., Tax is charged when the contract is paid for in advance. If the Agreement does not cover charges, 100% tax will be calculated on the balance not covered.

Tax Based on Sub Total Plus Tax Added

This method of calculating Tax means that the Service Company will pay the Tax. i.e., the tax is still calculated, but is added back to the Cover so the Customer is not charged, though the tax is still passed through to the General Ledger for accounting purposes.

Refer to the Sage 300 Common Services, Tax Service documentation for more information on how to set up your Tax Authorities, Classes, Rates and Groups.

Refer to the Sage 300 Common Services, Currency documentation for more information on how to set up your Currency Codes, Rate Types, Tables, Rates and Euro Currency Rates.