Calculate Sales Tax Automatically

Some states require taxes to be collected on the sale of dental procedures or products. By setting up a procedure code in Dentrix specifically for sales tax, you can use it to automatically calculate tax in the Ledger.

To set up the tax/discount option:

  1. Open the Ledger and click File > Tax/Discount Options. The Tax/Discount Options Setup dialog box appears.
  2. Click New. The New Tax/Discount dialog box appears.

    Tips and Tricks 1

  3. In the Description field, enter a description of the tax option, such as "Sales Tax."
  4. In the Percentage field, enter the tax percentage.
  5. To collect the tax by using a procedure code for tracking, mark the Procedure Code radio button, and use the >> button to select the procedure code associated with the tax.

    Note: For more information on how to set up a procedure code for tax, see knowledgebase article #15634 in the Dentrix Resource Center. Beginning in January, CDT 2014 will release and establish a code that should be used for tax purposes.
  6. In the Fee Schedule group box, select Use Procedure Amount to calculate the tax based on the amount you are charging in the Ledger.
  7. Click OK to save your changes.

By following the above steps, the tax option is set for all workstations in your practice. To apply sales tax to a procedure/product:

  1. Open the Ledger and select a patient.
  2. Select the procedure(s) to which the tax will be applied.
  3. From the Ledger toolbar, click the Enter Tax/Discount button. The Enter Tax/Discount dialog box appears.

    Tips and Tricks 1

  4. In the Calculate for: group box, mark the Selected Procedures option to only calculate the tax for the procedures selected in step 2.
  5. From the Tax/Discount Type list, select the type of tax you want to apply (i.e., Sales Tax).
  6. Select the Provider you want to assign the tax toward.
  7. Enter any notes pertaining to the tax in the Note field, if desired.
  8. Click OK. Dentrix calculates the amount of the tax and posts the charge to the account.

To watch a video of these steps, view the Dentrix Does It video titled "Applying Sales Tax". For more information about how to set up a procedure code for tax, log in to the Dentrix Resource Center and see knowledgebase article #15634.

Author: Sean Eyring
Published: 10/31/2013
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