Customisable taxes

Tax is data, not code: define as many rates as you need and set which parts, customers and vendors attract each of them.

• Any number of tax codes, each on its own account.
• Rates change over time, with the effective date held against each rate.
• Taxable status set per part and per assembly.
• Taxable status set per customer and per vendor, so exemptions are automatic.
• Tax calculated on top of the price or included in it.
• Several taxes on one transaction, compounding where the rules require it.
• Tax collected and tax paid reports for the return.
• A non-taxable report for the items that were exempt.
• Tax numbers held on customers and vendors and printed on documents.

Where to find it System › Taxes  ·  System › Chart of Accounts  ·  AR › Reports › Tax collected  ·  AP › Reports › Tax paid

Setting up a tax

1. Add a liability account for the tax in System › Chart of Accounts and tick it for Tax under the AR, AP and item drop-downs. That is what makes it a tax code.
2. Open System › Taxes. Each tax account is listed: enter the rate, your registration number for it, and optionally a Valid To date. When a rate changes, set the old one to expire and add the new rate on the same account.
3. On each part, service and assembly, tick the taxes it attracts. On each customer and vendor, tick the taxes they pay — a transaction is taxed only where both sides agree, so an exempt customer simply has nothing ticked.
4. Tick Tax Included on a customer whose prices are quoted gross; the tax is backed out of the line amounts instead of added.

The return

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