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Tax Options |
  
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Tax Options |
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Tax rates are defined under Maintenance: Tax Rates. Those tax rates are applied to customers and inventory items. These settings determine how tax rates will be applied when invoicing.
Standard SE Options
IMPORTANT NOTE: if your locality will be implementing a Tax Rate Change call 800-735-6860 for assistance or see Changing Tax Rates
General tab
When you installed POSitive, a selection was automatically made for each option. As a general rule, these selections are good as they stand. However, if you have gone to Maintenance: Tax Rates and made changes by deleting or renaming entries, then you may need to reset these. NOT: do not delete tax rates. (see Changing Tax Rates)
| • | Quick Sale Tax Group - This is the tax group and tax rates applied to customers who make purchases with the Quick Sale invoice. If MultiSite |
If there is any likelihood that your customers will be shopping at multiple stores which will likely be charging different tax rates, ALL CUSTOMERS should be assigned to "Quick Sale Default" on the customer record. This allows the customer to shop at any site and pay the local tax rate.
System Setup Tax Options "Quick Sale Tax Group" Rate setting will be what customers assigned to Quick Sale Default will be charged. For example, in System Setup at a remote site, they would select R-Sales Tax If the customer is having products shipped, then a Shipping Address with the proper tax rate (Destination Tax MUST be activated (see System Setup: Customers: Tax Group Based on Shipping Address)) should be defined in advance or at the time of invoicing. |
| • | Package Sales Tax - If you are using the Package option on an invoice, you could have a mix of inventory at different tax rates. This designates the tax to be applied to all items within the package if there is ever such a mix. |
| • | "No Tax" Tax Category - Select an exempt or non-taxable tax category. This is for those rare times when a customer should not be charged tax on just one line item on the invoice, yet other items need to be taxed. Once this is defined, then CTRL-X while highlighting an item on an invoice will remove or activate the taxation of the line item. Actually, CTRL-X will allow you to select any other previously defined tax category, not just NoTax. This is especially useful if GST and/or PST taxes have been defined. (see Changing Tax Rates and Adjusting Tax Per Invoice) |
Always Round Sales Tax Up - This setting assures that you are collecting enough sales tax and never "shortchanged." (see Sales Tax Rounding)
Tip: The ? button will open the help topic with information about Sales Tax Rounding
Note: If you are using two tax rates (e.g. State Tax and City Tax) as separate calculations per inventory item, you should NOT use this option. Rounding is done per tax rate and the combined tax total will cause GL Transactions to be out of balance. (see Sales Tax Rounding for a sample screen shot)
Base Tax On Invoice Total (Rather Than Individual Line Items) - This setting will calculate taxes on the invoice total (after all line items are added to the invoice.) If you have chosen the previous option "Always Round Sales Tax Up," then this option should also be activated.
| • | If checked, POSitive will total the sales on the invoice for all line items, then calculate the tax. You should check with your state tax authority to see if this is appropriate. |
| • | If unchecked, (recommended) because most states base tax on individual line items, not the total. |
Also see Changing Tax Rates
