Defining a Tran Code within Capital Software Property Tax Software.

What is a tran code?

A transaction code (rate code) is an item setup each year by the user to accurately calculate and track all of the charges to be applied within the system. The transaction code or tran code as referred to from this point on, is the cornerstone to all calculations performed by the system.

Tran codes are typically setup for Taxes, Penalty, Interest and any miscellaneous charge such as advertising or attorney fees. You can setup a tran code for any type of tax related charge.

A tran code contains descriptions, rates, general ledger numbers, discount days and rates, penalty days and rates, interest days and rates. Each of these items must be addressed during tran code setup to guarantee the desired outcome and performance.

Information needed before setting up a Tran Code within the Capital Software Property Tax Software.

Preparation is the key to a smooth tran code setup process. Before setting up your tran codes, list out the following information on paper:

1. All possible charges that normally appear on your tax bill.

2. Assign a name to each code using a format similar to Year/type like 09RP.

3. Write down the tax rate and any multiplying factors such as per 100 or per 1000.

4. Write down any specific calculation needs for your area. For example it is common in many areas to only use a portion like 20% on the actual property assessment.

5. Write down you discount rate (negative number) if applicable

6. Write down your penalty rate .10 = 10%

7. Write down your ANNUAL interest rate (1% / month = .12% / year)

8. Write down the General Ledger account numbers for the Cash, Accounts Receivable and Revenue accounts. Ask your accountant if you do not know those numbers.

9. Write down what accounts get this charge. For example is it applied to everyone or just residential property. That will help your SQL statement.