In the Method of calculationfield in the Sales tax codes form, you can set up a sales tax code to be calculated on the basis of one of these options:

• Whole amount– A tax rate is applied to the entire taxable amount. The taxable amount falls within a range (amount interval) that has a specific tax rate.

• Interval– The taxable amount is divided into parts, each of which falls within an amount interval that has a specific sales tax rate. The part of the amount that falls within a given interval is taxed according to the tax rate for that interval. The sales tax is the sum of the tax amounts that are calculated for each amount interval.

  Note
  The Intervaloption can be selected only if you selected Linein the Method of calculationfield on the Sales taxtab of the Parameters form.

For taxes to be calculated on all taxable amounts—regardless of which method is selected—intervals must conform to the following rules:

• The first interval has a lower limit of 0.

• The last interval has an upper limit of 0, which stands for infinity.

• The upper limit of any interval is the lower limit of the next interval.

If an amount is the upper limit of one interval and the lower limit of the next interval, the rate of the first interval applies to the amount.

If an amount falls outside the intervals that are defined by upper and lower limits, a tax rate of 0 is applied.

Note
To set up tax intervals for the sales tax code that you select in the Sales tax codes form, click Values. For more information, see Values of sales tax codes (form).