Setting Up Sales Tax

Portico helps you calculate and collect sales tax for fees and eliminate the need for manual general ledger entries. The system will assess the sales tax on each type of online and back-office fee considered taxable.

To begin using Portico's automated sales tax option, you need to complete the following steps:

1. Create the tax group code on the Sales Tax Group Code window. The general ledgers and percentages defined on the Sales Tax Group Code window will be used when calculating the sales tax amount and making the general ledger entries.
2. Next, you need to identify the share types that will be charged sales tax for the transactions specified on the Sales Tax Taxable Fees window.
   • During the back-office cycle, Portico will calculate the sales tax and move the money from the fee general ledger on the Sales Tax Taxable Fees window to the sales tax general ledgers on the on the Sales Tax Group Code window. The general ledger number listed on the Sales Tax Taxable Fees window should be the same as the GL account on the Product Code Information window for the associated product code.
   • Portico will look at the Post Fees to Member Branch check box option on the Credit Union Profile – Credit Union tab to determine if the moves should occur in branch 000 or the member branch for Flexible Fees, ACH fees, and Share Draft fees. Portico will look at the Branch Fee field in the in the Network Options section on the Credit Union Profile - Self Service tab to determine if the general ledger moves for sales tax calculated on ATM fees should be made in branch 000 or the branch listed in the Branch Fee field.
3. To determine which group code will be used to calculate the sales tax, specify the sales tax group code in the Sales Tax Group Code field on the Teller Information window for each teller. The back-office teller will use the sales tax group code AAA.
4. To assess sales tax on fees collected through online transactions, you must add a new product code under master code GTAX.
5. On the Product Code Information window, select the Calculate Sales Tax check box to calculate and collect sales tax on the Transactions – Deposits, Withdrawal, Payments and Transfers tab, Share Journal Vouchers tab, and Adjustments – Share Withdrawal to General Ledger tab. There is no need to link another product code to the fee product code on the Product Code Information window.
6. Once you set up the new product code under master code GTAX and you set up a product code with the Calculate Sales Tax check box, you will need to add the product codes to the ALD transaction on the Transaction Definition window. You can add the new product codes under an individual ALD transaction category or under the wildcard transaction category.