That is correct Steve.
Whatever tax code is selected for a part or labor charge in a workorder, that tax code’s % is what will be used on a report to determine its taxes.
It doesn’t matter if you created that workorder three years ago, or created it last month, or created it today. What matters is the % of the tax code itself that was selected with the record and saved with it.
Let’s say that previous to today, taxes are 7% for services and for goods provided .
So you have been using a tax code with the name of “PST Seven%” with a rate of 7% set for Tax A and 0% for Tax B
Existing workorders created prior to today have this tax code “PST Seven%” selected for part records and for labor records - if you print preview a Sample Detailed Service Workorder with Grand Total, parts and labor that have “PST Seven%” selected will show 7% tax.
i.e. workorder #100 from Feb 2012 has tax code “PST Seven%” selected for the labor record
If you print preview that workorder’s report today or yesterday or two years ago, the same 7% would be applied.
And now let’s say as of Dec 18 2013 today, a new tax code of 7.5% is implemented.
So you create a new tax code with a distinguishable name “PST Seven Pt Five%” with the new rate 7.5% for Tax A and 0% for Tax B
If have set defaults in Global Settings for tax codes to use, select the new tax code to use “PST Seven Pt Five%” instead, and save.
Back to the Tax Code subgrid, set the old tax code “PST Seven%” as inactive by unchecking its Active field so that the old tax code can not be selected in anything further.
i.e. after creating the new tax code and setting the old tax code to inactive, view the workorder #100
You will see that the tax code selected is STILL “PST Seven%” - AyaNova does not remove because you have set inactive. Inactive means it can not be selected anywhere new.
And when you print preview a report for that workorder now, you will see that it STILL uses the 7% tax code because that is what is selected.