Section 4: Setup > Taxes

Working with Taxes

Automatically Applying Tax Categories and Rules

Taxes are automatically determined based on the province or state entered either on the repair order, sales invoice, or credit note record, or the tax rules that have been set up on the billing tab of the shipping customer account or the billing customer account (see Customer - Billing Address/Info Tab). The way that taxes are determined, however, varies depending on whether the tax is based on the province or state of the shipping address or on the province or state of the billing customer account.

 

Tax Rules are determined by
the Shipping Address when…

Tax Rules are determined from
the Customer Account when…

Tax Rules are determined from
the Billing Account when…

l The tax is based on shipping address, and the customer is the miscellaneous customer account (i.e. customer account 0000000)

l The tax is based on shipping address, and the customer is a customer account

 

l The tax is based on billing address, the customer is the miscellaneous customer account (i.e. customer account 0000000), and the invoice is billed to “self”

l The tax is based on billing address, the customer is a customer account, and the invoice is billed to “self”

l The tax is based on billing address, and invoice is billed to a third-party

 

If a tax is based on the shipping address then there are two options for automatically determining the tax rules. First, if the shipping customer is the miscellaneous customer account (i.e. customer account 0000000) then the tax rules are based on the province or state entered as part of the shipping address. Second, if the shipping customer is a customer account then the tax rules and default tax exemption number are copied from the billing tab of the customer account record.

If a tax is based on the billing address then there are three options for automatically determining the tax rules. First, if the shipping customer is the miscellaneous customer account (i.e. customer account 0000000) and the invoice is billed to “self” then the tax rules are based on the province or state entered as part of the shipping address. Second, if the shipping customer is a customer account and the invoice is billed to “self” then the tax rules and default tax exemption number are copied from the billing tab of the customer account record. Third, if the invoice is billed to a third-party, then the tax rules and default tax exemption number are copied from the billing tab of the billing customer account record.

Manually Editing Tax Categories on Individual Records

Application of tax categories may only be edited manually on individual customer account, repair order, sales invoice, and credit note records if the Allow Rules Editing option has been checked for the corresponding tax category (see Editing Default Tax Categories and Rules), or if the tax category would normally be applied automatically based on the entered province or state and customer or billing accounts (see Automatically Applying Tax Categories and Rules).

Check the box in front of the tax name to apply taxes for the corresponding tax category, or uncheck the box to turn off application of taxes for the corresponding tax category.

Manually Editing Tax Rules on Individual Records

Tax rules for each tax category may only be edited manually on individual customer account, repair order, sales invoice, and credit note records if the Allow Rules Editing option has been checked for the corresponding tax category (see Editing Default Tax Categories and Rules).

On the selected record, the checkbox in front of the tax name must be checked off which will enable the tax rate field. The tax rate may be edited simply by entering or selecting a new tax rate.

To edit additional tax rules, either right-click on the scroll buttons of the tax rate field, or press the Alt+ key combination while in the tax rate field. A popup window will appear listing the additional tax rules which may be selected.

Check or uncheck the desired tax rules and then either click on any field outside of the popup window, or press the Alt+ key combination to close the window.

Tax Exemptions

If a customer is exempt from paying a tax that would normally be charged then uncheck the box in front of the tax name of the corresponding tax category. If applicable, you may also enter a tax exemption number.

Default tax exemption rules and a tax exemption number may be saved for each customer account (see Customer - Billing Address/Info Tab).

More:

Working with Batches of Taxes