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Free Accounting Tutorial
Introduction
Conception
Get Started
Lesson 1. Company Information in Free Accounting
Lesson 2. Create a Vendor in Free Accounting
Lesson 3. Create an Item in Free Accounting
Lesson 4. Purchase an Item in Free Accounting
Lesson 5. Create Receipt in Free Accounting
Lesson 6. Make Payment to the Vendor in Free Accounting
Lesson 7. Vendor Pay Bills in Free Accounting
Lesson 8. Create a Customer in Free Accounting
Lesson 9. Create a Sales Order in Free Accounting
Lesson 10. Create an Invoice in Free Accounting
Lesson 11. Receive Payment form the Customer in Free Accounting
Lesson 12. Reconcile Payment with Charge in Free Accounting
Lesson 13. Customer Return Invoice in Free Accounting
Lesson 14. Create Credit Memo in Free Accounting
Lesson 15. Vendor Return Receipt in Free Accounting
Lesson 16. Create Debit Memo in Free Accounting
Lesson 17. View Reports in Free Accounting
Lesson 18. Bank Reconciliation in Free Accounting
Lesson 19. Trial Balance in Free Accounting
Free Accounting Support
Free Accounting Glossary
Troubleshooting
Free Accounting Tax Jurisdictions List
All levels of government require tax dues on sales that your company makes. Free Accounting Tax Jurisdictions List allows you defining a tax jurisdiction to properly charge your Customer the correct taxes based on a rate or location. If you run your business in a state that has different sales taxes for different cities, set up parent and child jurisdictions.

To view this list select Lists / Person Profile / Tax Jurisdiction List from the Free Accounting main menu or press Customers button on the Commands Panel and select Tax Jurisdictions in the Navigation Pane.

Follow these steps to add a new tax jurisdiction into the Free Accounting system:
  1. Select Lists / Person Profile / Tax Jurisdictions List from the Free Accounting main menu.
  2. Right click in the Preview Pane and select Add.
  3. Enter the required information into the fields. After saving, this information can be edited in the Free Accounting application by right clicking in the Preview Pane and selecting Edit or just by double clicking on the line. Check / uncheck the Active check box to make the current entry active / inactive in the list.
  4. Press the Ok button to save the changes.

    Tax Jurisdiction window

Jurisdiction Information:
Payable To - The name of the new jurisdiction.
Parent Jurisdiction - This is the next higher government level that the Customer has to pay tax to.
Tax Account - This is an accounting record that tracks the sales taxes. To add a new account, go to the New Account window, by selecting Add New from the Tax Account drop-down.
Contact Person - The person who can be got in touch with.
Phone - The 7 or 10 digit phone number with extension.
Fax - The 7 or 10 digit fax number with extension.

Address Information:
Address - The mailing address.
Country - The country of the jurisdiction. To add a new country, go to the Add Country window by selecting Add New from the Country drop-down.
State/Province - The state/province the jurisdiction is located. To add a new state, go to the Add State/Province window by selecting Add New from the State/Province drop-down.
City - The city the jurisdiction is located.
County - The county the jurisdiction is located.
All Apply - When the tax code is a 'tax on tax' then you should check this box. An additional Priority field appears in the grid. The subtotal amount, that is taxed when this box is checked, includes the amount of all taxes that have a lower priority.

The following grid allows you to enter details about the individual taxes that are applied for a particular Jurisdiction. You may prefer to enter only a Tax Code that encompasses all the taxes that are applicable for this Jurisdiction or you may want to itemize the individual tax codes and rates. Any method is acceptable. For each tax rate applicable within a jurisdiction the following information is required:

Tax Code - The government identifier for this particular tax rate.
Tax Type:
    Rate (%) - If the tax is calculated in per cent select Rate Tax Type.
    Fixed Amount - If the tax is a fixed dollar amount then select Fixed Tax Type.
Pay Mode - This field establishes how many times a year the tax is paid.
    Weekly - The tax is paid weekly for the previous week.
    Monthly - The tax is paid monthly for the previous month.
    Quarterly - The tax is paid quarterly for the previous quarter.
    Biannually- Paid every six months for the previous six months.
    Yearly- The tax is paid yearly for the previous year.
Rate (%) / Amount - Enter either the percentage rate or the fixed tax amount in this field.
Due On - The day of the period that the taxation information should be prepared by.
Start Date - If the tax is not to come into effect until a specific date, then set this date accordingly. By default this date is set to Jan 1, 1996.
End Date - If the tax has the expiration date or the rate is to be changed after a specific date, then set this date accordingly. By default this date is set to Dec 31, 2009 in the Free Accounting program.
Description - This is a description of the tax that is applied.

Click the View Edit History button to view the changes made to the current entry in the Free Accounting application.

NOTE:
  • Parent Jurisdiction - The parent jurisdiction is the next higher government level that the Customer has to pay tax to. Example - The state would be the parent jurisdiction to the county and the county would be parent to the city.
  • Child Jurisdiction - A child jurisdiction is the next lower level of government that adds its tax rate to a higher level of government (parent jurisdiction.) Example - The county is a child jurisdiction to the state. The child's tax rate is added to the parent tax rate.
  • Parent jurisdictions have to be made before the child jurisdictions.
  • A child jurisdiction can be a parent jurisdiction to another child one.


See the Free Accounting Right-click Function window for more information about the right-click function of the Tax Jurisdictions List window.
Use Search function to find some definite record.
See also:
Free Accounting Lists

Free Accounting Software