Sales Taxes and Charges Template
Introduction
Sales Taxes and Charges are usually applied to an item that you sell. The Sales Taxes and Charges template can be used in Sales Orders and Sales Invoices.
If you intend to use Tax Accounts in your Tax Templates, you must set the Account Type field as 'Tax' for that particular account. The way iVendNext sets up taxes is via templates.
Other types of charges that may apply to your invoices (like shipping, insurance etc.) can also be configured as taxes. To know about setting up taxes visit Setting Up Taxes page.
To access Sales Taxes and Charges Template, navigate to: Home > Selling > Settings > Sales Taxes and Charges Template.
Steps to add Sales Taxes/Charges via a template
The steps to add Sales Taxes/Charges via a template are explained below:
Before creating a new template, note that templates are already created for many of the commonly used taxes.
Go to the Sales Taxes and Charges Template list, click on New.
Enter a title name for the Tax.
Under type, set on what the tax will be calculated and the tax rate.
Select an account head which has pre-set tax rates or create your own.
Selecting default will apply this template by default for new Sales transactions.
Click the Save button to save the changes and exit the screen.
New Sales Taxes and Charges Screen Explained
The various fields of the New Sales Taxes and Charges screen are explained below:
Title
Specify the title for the Sales Taxes and Charges Template.
Default
Check this box if you want to make this Sales Taxes and Charges Template as the default template. Setting this as the default template would mean that the Sales Taxes and Charges defined in this template will apply automatically to the items that you sell at the POS terminal.
Disabled
Check this box if you want to disable this Sales Taxes and Charges Template. Setting this as disabled would mean that the Sales Taxes and Charges defined in this template will not be applied to the items that you sell at the POS terminal.
Company
Select the Company from the drop down list or choose to create a new company by clicking on the Create a new Company option. This Default account will be automatically updated on the POS Invoice.
Tax Category
Select the Tax Category from the drop down list or choose to create a new Tax Category by clicking on the Create a new Tax Category option. A Tax Category allows applying one or more Tax Rules to transactions based on various criteria. See: Tax Category
Sales Taxes and Charges
Use the Sales Taxes and Charges Template to configure and manage all the settings pertaining to the sales taxes and charges that will usually be applied to an item that you sell at the POS
You will have to click the Add Row button to add a row to the New Sales Taxes and Charges Template. Click on the Pencil symbol under the Gear icon to open the Editing Row screen. On the Editing Row screen you can specify the required information. |
Type
Select the Tax Type from the drop down list. Tax Type will determine if the tax will be calculated on the Actual Amount, or the Net Amount or the Item Quantity and at what rate. There are five options under which tax will be calculated.
Actual:
You can directly enter the amount for the expense.
On Net Total:
On the net total of all the items.
On Previous Row Amount:
This is for compounding the charges. For example, cess charges over the amount to which tax was already applied in the previous row.
On Previous Row Total:
Same as above but applied on the total bill and not just the amount of an item.
On Item Quantity:
Tax will be calculated as Tax Rate * Item Quantity. For example, if the Tax Rate is 2% and the number of Items is 1, then Tax Rate will be 4, if number of Items are 5, Tax Rate will be 10, and so on.
Account Head
Select the Account Head from the drop down list or choose to create a new Account Head by clicking on the Create a new Account Head option. The Account Head is basically the Account ledger under which this tax will be booked. If you select VAT or any other preset heads, the rate will be automatically filled.
Item
Select the Item from the drop down list or choose to create a new Item by clicking on the Create a new Item option. The tax rates you define in the template are the standard tax rate for all Items. If there are Items that are supposed to have different rates, you can override the standard tax rate by setting an Item Tax Template to the Item or Item Group.
On Item Row
Specify the Row number. If tax is based on "Previous Row Total" you can select the row number which will be taken as a base for this calculation (default is the previous row)
Surcharge
Select the Surcharge Type from the drop down list or choose to create a new Surcharge by clicking on the Create a new Surcharge option. Surcharge is the extra fee that the customer pays when purchasing an item at the POS terminal. It can be a fixed amount or a percentage of the sale. For example, Freight, Handling Charges, Gift Wrapping, etc
Surcharge Amount
Specify the Surcharge Amount or Percentage. The value in this field relies upon the previous field.
Final Amount
The value in this field is auto-populated based on the previous fields.
Description
Specify the description for the Sales Taxes and Charges. The description helps you identify the type of tax or charge. This description will also be printed in invoices/quotes.
Is this Tax included in the Basic Rate?
Check this box if you want the tax amount to be considered as already included in the Print Rate / Print Amount. This is useful when you want to give tax inclusive prices to your customers. To account for tax inclusive rates, the system calculates the Net Amount by deducting the amount of tax to be applied then calculates the tax on it.
Considered In Paid Amount
Check this box if you want the tax amount to be considered as already included in the Paid Amount in Payment Entry
Discount Type
Select the Discount Type from the drop down list. The discount can be a Flat Amount or Percentage.
Discount Amount
Specify the Discount Amount or Percentage. The value in this field relies upon the previous field.
Tax Template
Select the Tax Template from the drop down list or choose to create a new Tax Template by clicking on the Create a new Tax Template option. See: Tax Template Types
Applied Tax Amount
Specify the Applied Tax Amount.
Discountable
Check this box if you want the cashier to be able to offer a discount on the Sales Taxes and Charges applied on the item or the transaction.
Taxable
Check this box if you want the cashier to be able to levy additional tax on the Sales Taxes and Charges applied on the item or the transaction.
Refundable
Check this box if you want the cashier to be able to refund the Sales Taxes and Charges applied on the item or the transaction.
Load on Item Cost
Check this box if you want the surcharge to be added to the item cost while calculating the weighted average price of an item.
Is return
Check this box if you want the surcharge to be added to the item cost when processing a sales return.
Tax Rate
Specify the Tax Rate. The tax rates you define in the template are the standard tax rate for all Items. If there are Items that are supposed to have different rates, you can override the standard tax rate by setting an Item Tax Template to the Item or Item Group.
Is Default
Check this box if you want to make this Tax Rate as the default Tax Rate.
Cost Center
Select the Cost Center from the drop down list or choose to create a new Cost Center by clicking on the Create a new Cost Center option. If the tax/charge is an income (like shipping) or expense it needs to be booked against a Cost Center.
Tax Rate
Specify the Tax Rate. The tax rates you define in the template are the standard tax rate for all Items. If there are Items that are supposed to have different rates, you can override the standard tax rate by setting an Item Tax Template to the Item or Item Group. The tax rates you define in the template are the standard tax rate for all Items. If there are Items that are supposed to have different rates, you can override the standard tax rate by setting an Item Tax Template to the Item or Item Group.
Account Currency
The value in this field is auto populated based on the Company selected. This field is non-editable.
Amount
Specify the Tax amount to be applied. This field is editable only when the Tax Type is selected from the drop down list.