Sales Tax Rate Change

[Bambi]

Our state sales tax has increased. If I update the tax rate, will it mess up all the previous invoices before the sales tax rate change, or will the new rate only apply to the new invoices from that day and on? Has anyone done this before? Please help me. Thank you!!

[rick Prindivill]

Changes to Sales Tax Codes such as Tax Rates will affect only new transaction entered after the change(s). History is history, unless you should edit a prior period invoice etc.

[Lisa_p]

To be on the safe side, I prefer to create new codes so that prior invoices don't inadvertantly change.

Once you've created the new code, you can mass update your customer list by exporting the Customer ID and sales tax code(s) remember the shipping ones too, opening in Excel, replace the old codes and reimport.

[Bambi]

Thank you both. I will have to choose one of the two. Even if I create a brand new tax code, I may face a similar issue (of unintended modification to prior records) since I will have to replace the default tax code for each client with the new one. I will test both methods and go with the one that gives least trouble. Thank you again. It was very helpful.

[Bambi]

Changes to Sales Tax Codes such as Tax Rates will affect only new transaction entered after the change(s). History is history, unless you should edit a prior period invoice etc.

;) I went ahead and changed the rate of the existing sales tax code. I checked my previous invoices and tested out if they would automatically update to new rate and mess up everything. And, it seems that at least in my peachtree system, as long as I do not make changes to sales taxable items (e.g. quantity & amount) or touch the sales tax field (e.g. the arrow button for dropdown), it does not mess up the previous sales tax calculation made with the old rate. If I make changes to any of them though, it automatically updates the calculation, which means that I would have to be very very careful not to touch anything when I view old invoices, quotes, etc. :rolleyes: Oh well.. can't get everything.

[1jamiemg]

We recently had a tax rate increase as well. When I re-ran my Jan - Mar tax summary report it pulled up the new rate to calculate my tax due. I ended up putting it into Excel and adjusting the rate back to 7.75% in order to know and make the correct payment. Was there a differnt way I should have changed the tax rate?

[Lisa_p]

There's another argument for creating a new code