Tax Rates: Setup and management

Estimated reading: 4 minutes

Setup sales and usage taxes and link to invoice items. Once setup, they can be used and tracked through invoicing, inventory, and reporting. Sales taxes are applied at the time of invoicing. Usage taxes are applied when using the Internal Stock Use feature.

Before you start

  • Security access to Taxes, Taxes Setup to create and maintain taxes and rates
  • Security access to Invoice Item Information, Mass markup, and Client Information A/R info dialogs to complete linking of taxes and indicate tax exempt status
  • Security access to Defaults – Practice to set Invoice item defaults to pre-link sales and usage taxes to new invoice items, Inventory Defaults for usage taxes
  • Security access to Invoice Item Classification List and Invoice Item Classification Information dialogs to preassign taxes to new items added to the classification

Add or update a tax rate

  1. Controls > Taxes
  2. Click New or select existing tax and click Update.
  3. Enter/modify a tax description. The description appears on client invoices and tax reports.
  4. Enter/modify a percentage and press Tab.
  5. Enter a GL Account name if your practice uses the General Ledger Interface.
  6. Modify status, if needed.
  7. Multi-location single database (MLSD) only: Select the practice(s) for which this tax applies. You can also select Apply to all.
  8. Click OK.

Individual items: Associate or remove taxes

  1. Lists > Invoice Item > search and select an invoice item > Update > Tax/Disc tab
  2. In the Taxes to apply field, click to highlight the tax(s) that are applicable for this item. Click on a highlighted tax to deselect it.
  3. Click Ok.

Multiple items: Associate or remove taxes

  1. Tools > Mass Markup > Tax tab
    Note: Exclusive use of Cornerstone is required when using the Mass Markup tool.
  2. Use Invoice item information and Type options to create list of items.
  3. Click to highlight the tax in the lower field.
  4. Do one of the following:
    • Select individual items using Ctrl + click.
    • Click Select All, deselect items as needed using Ctrl + click.
    • Click Add or Remove to add or remove the highlighted tax.
  5. Click Apply.
  6. Repeat steps as needed for additional taxes.

Set client as tax exempt

  1. Client Information > A/R Information tab > select Tax exempt
  2. Click Ok.
  3. Repeat as needed for additional clients.

Additional information


Inactive taxes

Multi-location single database taxes

Related reports

  • Sales Tax Summary reports
  • Sales Tax Summary/Income Reconciliation reports
  • Invoice Item Tax Setup
  • Internal Usage
  • Usage Tax Report
  • End of Period Sales Summary reports
  • Itemized Audit Trail
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Tax Rates: Setup and management

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