Taxable Transaction Entry

In most states it is illegal to charge tax on medical procedures. However, many offices and practices sell items directly to their patients. These could include equipment, vitamin supplements, and other similar items. The sale of these items is often subject to sales tax. In order to enter a taxable transaction and the charge for the sales tax, take the following steps:

  1. Set up a procedure code for the taxable item. (See MED103: Getting Started) When setting up this code, make sure you place a check mark in the field labeled Taxable.
  2. Set up a procedure code for the actual sales tax. (See MED103: Getting Started) When setting up this code, make sure you enter Tax as the procedure type and enter the tax percentage in the corresponding field.
  3. Open the Program Options screen. On the Data Entry tab you will see the following fields:


    The fields that affect the tax functionality are labeled Auto Create Tax Entry and Default Tax Code. If you would like to use the tax feature, the Default Tax Code is required. You should enter the tax code set up in step 2 into this field.

Tips and Tricks:

If the tax amount changes in your area, you should set up a new tax procedure code. This new code should have the new percentage. You would then need to change this code within the program options.

The Auto Create Tax Entry field determines exactly how taxes will be entered. If this field is checked, whenever a charge is entered using a procedure code that is marked as Taxable, a second line item will be entered automatically for the sales tax. The amount on that line item will be based on the tax percentage entered in the procedure code set in the Default Tax Code field, and the charge amount entered for the taxable charge.

If this field is not checked, if a taxable charge is entered, you must click the Tax button in order to create the charges for the tax amount.


Following this process will allow you to enter transactions that include sales tax amounts.


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One Response to “How To Enter A Taxable Transaction In Medisoft”

  1. How To Enter A Taxable Transaction In Medisoft | medisoftvar's Blog on May 24th, 2013 11:44 am

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