Sales Tax Setup and Configuration

Sales Tax Setup and Configuration


MaxxTraxx includes a built-in utility for configuring sales tax rates applied to parts and labor sales. This article explains how to set up and manage sales tax rates used on repair orders (ROs) and parts invoices.


Accessing Sales Tax Settings

1.     Open the Setups menu by clicking the gear icon in the upper-right corner of MaxxTraxx.

2.     In the Accounting section, select Sales Tax Rates.

3.     This opens the Sales Tax Rate Definitions window.


Default Tax Rates


MaxxTraxx includes three default tax rate types:

  • Default – Standard sales tax rate for your location

  • Non-Taxed – Used for tax-exempt customers (e.g., government agencies)

  • Resale – Used for customers with a valid resale certificate


These can be used as-is or modified based on your business needs.


Adding or Editing Tax Rates


Add a New Tax Rate

  • Click Add Tax Rate to create a new tax definition.


Edit an Existing Tax Rate

  • Highlight the tax rate and click Edit, or double-click the entry.


From the Tax Rate window, you can:

  • Edit the Tax Code Name and State/Province
  • Configure Tax Type 1 (standard parts tax rate)
    • Enter the percentage in the Parts Rate field
  • Adjust Labor Tax Rate if applicable in your region
  • Modify the default GL account postings (consult your accounting professional before making changes)


Multiple Tax Types (Regional Requirements)


If your region requires multiple tax components:

  1. Enable additional tax sections by checking Use Tax Type
  2. Configure each tax type as needed
  3. Ensure correct GL accounts are assigned for each tax type


Saving Changes

  • Click OK to save changes
  • Then click Close to exit setup


Alert
Important:
Changes to tax rates are NOT automatically applied to open repair orders or invoices. You must manually re-select the updated tax code on existing transactions.


Enabling Tax Breakdown on Repair Orders and Invoices


Some regions require tax to be itemized on documents.


To enable this:

  1. Go to Setups → Repair Orders and Part Invoices
  2. Select RO Setup
  3. Check the box for:
    • Print Tax Breakdown on RO and Part Invoice

  4. Click OK, then close Setup


Updating Tax Code on an Existing Repair Order

  1. Open the Repair Order
  2. Navigate to the Miscellaneous tab
  3. Locate the Tax Code field and click Select
  4. Choose the correct tax rate and click Select
  5. Verify updated totals:
    • Check the Summary tab, or
    • Review totals in the lower-right corner of the RO screen

Notes
  • Always verify tax configuration with your accounting professional before modifying GL accounts.
  • Tax changes only apply to new transactions unless manually updated on existing ROs or invoices.

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