Handling Transactions and Codes

Setting Up Service Tax

SoftDent enables you to apply service tax to ADA procedure codes as they are posted.

• Before enabling service tax in SoftDent, make sure that service taxes are legal in your state.

Two processes are involved when setting up service tax:

• Enabling Service TaxEnabling Service Tax

   

  To enable service tax:

   

  1. Click System > Change System Settings > General System. The General System Settings window is displayed.

  2. In the Service Tax Settings section, click the drop-down arrow and select a tax method:

  3. Pro Rata—No patients or charges are exempt; tax is assessed on all.

  4. Non-Pro Rata—Some patients or charges can be exempt.

  3. In the Tax Rate field, type the tax rate. Example:Example:Type 7.00 for a 7% service tax.

  4. When you enable service tax, a Taxable field is added to the Information tab for each ADA procedure code. This option is selected by default for all codes. You must deselect the option for codes that should not be taxed.

  4. Click OK.

• Specifying Which ADA Codes Should Not Be TaxableSpecifying Which ADA Codes Should Not Be Taxable

  • When you enable service tax, a Taxable field is added to the Information tab for each ADA procedure code. This option is selected by default for all codes.

  To specify that an ADA code should not be taxable:

   

  1. Select List > ADA Codes. The ADA/Transaction Codes List window is displayed.

  2. Double-click a code in the list. The Information tab of the ADA/Transaction Codes window is displayed.

  3. At the bottom-right of the window, click the Taxable checkbox to remove the check.

  4. Click OK.

  5. Click Close.

  • If you are using the non-pro rata tax method, you can mark a transaction as taxable or not "on the fly" in the Transaction Detail window by checking or unchecking the Taxable check box in the Charges/Aging section.