Tax Resources

You can configure taxes to automatically add to an order when a particular order item (resource) is ordered. To configure a tax for a resource:

  1. Configure the Tax Resource
  2. Configure the Tax Scheme
  3. Assign the Tax Scheme to Resources

Configure the Tax Resource

To add a tax to a resource, you must add a tax resource. Tax resources are class 8 resources (the Type must begin with an 8) and are all added as Resource Types. To add a tax resource:

  1. Click the Tax Resources link from the Main Menu. The Tax Resources page opens.
  2. Click the Add button. The Add Tax Resource window opens.
  3. Enter the numeric type value beginning with an 8 into the Type field.
  4. Enter the name of the tax resource into the Resource Type Description field.
  5. Enter additional details for the tax:
    • Category – Select the Tax option. Classifies the tax resource as a Tax, Gratuity or Add-On. Allows for segmenting the tax resources for reporting purposes. Adding a tax resource defaults the field to Tax. Refer to Service Charge & Gratuity Resources for use of the Gratuity or Add-On options.
    • Rate Type – Determines how the tax is calculated. Defaults to Percent.
      • Percent - Uses a percentage to calculate the tax. Most taxes are set to Percent.
      • Rate - Uses a fixed amount for the tax. 
    • Basis – If Percent is selected in the Rate Type field, Amount defaults into the Basis field. This means the percent is calculated based off the amount of the order. If Rate is selected in the Rate Type field, the total of the tax is based off of either the Units of the tax or the Time Units of the tax.
    • Round to Nearest – Preferred monetary denomination rounding to use for the tax.
    • Round – Rounding method to use for the tax.
      • Round Off - Standard rounding methods are used.
      • Round Up -  Tax is always rounded up to the nearest value configured in the Round to Nearest field.
      • Truncate - Tax amount is truncated at the decimal value and no rounding takes place.
    • Exempt – If checked, the tax qualifies as exempt. If an order account is marked as Tax Exempt and an order is created for the account that includes the tax, then the tax is not included on the order. If the Exempt check box is unchecked, then regardless of the exempt status of the order account, the tax is added to the order.
    • U/M – If Percent is selected in the Rate Type field, select Each. If Amount is selected in the Rate Type field, select the desired U/M for the tax.
    • Per – If Percent is selected in the Rate Type field, enter 100. If Amount is selected in the Rate Type field, enter the desired value.
    • Calculation Sequence – If multiple taxes are configured for a single item, enter the sequence to calculate the taxes.  This is often used if if you need to tax fees or other taxes.
    • Add Manually – If checked, you can only add the tax resource directly to an order (ordered from the price list). The tax resource is never automatically added to an order.
    • Price List Used to Calculate Tax Rate – If checked, the tax rate is configured on the price list rather than on the resource.
  6. Select the Tax Rates tab.
  7. Click the Add button. The Add Tax Rate window opens.
  8. Enter the necessary information:
    • Rate - Tax rate (as a percentage).
    • Effective Date - Beginning date the tax rate is applicable.
    • Retired - If set to Yes, the tax rate is not used.
  9. Click OK.
  10. Click OK on the Edit Tax Resource window.

Configure the Tax Scheme

Once you create the tax resource, you need to add it to a tax scheme. Tax schemes allow you to create groups of taxes to apply to resources. Even if you use only one tax resource, you still must create a tax scheme and assign it to the applicable resources.

There are three types of Tax Schemes: Resource Tax Schemes, Account Tax Schemes, Event Tax Schemes. See Resource, Account and Event Tax Schemes for more information on each available tax scheme. 

To create a resource tax scheme:

  1. Click the Resource Tax Schemes link. The Tax Schemes page opens.
  2. Click the Add button. The Add Tax Scheme window opens.
  3. Enter the name of the tax scheme into the Description field.
  4. Enter an alphanumeric code into the Code field.
  5. Check the Active check box.
  6. Select the Taxes tab.
  7. Click the Add button. The Add Tax Scheme Tax Detail window opens.
  8. Select the tax created in Configure the Tax Resources from the Resource Description drop-down.
  9. Click OK.
  10. Repeat steps 7-9 to add all the applicable taxes to the scheme.
  11. Click OK on the Edit Tax Scheme window.

You can create as many tax schemes as needed to accommodate different tax groups.

Assign the Tax Scheme to Resources

You assign tax schemes to a resource type. Any resources added to the resource type default to the tax scheme assigned to the resource type. However, if resources already exist for the resource type, you need to update those resources to use the appropriate tax scheme.

You can have a different tax scheme for a resource than the tax scheme assigned to the resource type. You can change the Tax Scheme field for a resource if needed.   

If resources already exist that need the tax scheme assigned, use the Edit Multiple option to quickly assign tax schemes.

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Comments

10 comments

Date Votes
  • Kieron Marshall

    With "Add Manually" how does this work? how can it be added to a order manually?

    I have done test, I have created a tax with 3% and set it to manually.

    Then when I try to add through add Service Order item it isn't there, so then I Add it to the price list. It is then available as an option. so I can add it, then it comes through at 1 unit and 0 unit charge. and not calculated manually.

    My theory on this was, I could set a tax at 3% made it a manual one, and then I would be able to manually add it when I want to use it, and it calculate 3% on any resources on the service order with it assigned to the resource tax scheme without any manual entry of figures.

    Was I incorrect or am I adding this wrong?

    0 upvotes

  • Justin Nolde

    Hi Kieron,

    1. Set up the Tax Resource. Check it as a manual tax. You would not need to add a rate to the tax resource nor add it to a tax scheme.

    2. Add the manual tax resource to the price list. Keep in mind that the resource is set up as Percent per 100 Each. On the price list, in standard price you would put .03 for a 3% tax, following your example.

    3. Now on a service order, you have the option of adding that item. To start off, just put a 1 in the units column. This will of course select the tax. Once on the Edit Service Order screen, in the units column you will want to put the overall order total (if applying the tax to everything) or the total of the specific item you are taxing. The system will then do the math for you.

    Just a heads up, this is also what you can do for a "manual discount". The difference is that you would set it up as a type 3 resource, there is no "manual" check box, and when you add it to the price list, you would put -.03, for example.

    Thanks,

    Justin

    0 upvotes

  • Kieron Marshall

    Thanks Justin, I actually already do this with a normal resource set to per 100 and .03 on the price list as you suggested.

    It doesnt seem like the Manual tax does anything different then? The difference I was hoping to achieve was avoiding the manual entry of order total.

    0 upvotes

  • Sean Tame

    Kieron,

    What do you intend to use the 'manual' tax for?  I think that is the point of the manual entry.  Otherwise, wouldn't you set it as an auto tax?

    0 upvotes

  • Kieron Marshall
    • Edited

    Hi Sean, It is our credit card surcharge.. Hence why it is not automatic..

    I have it working fine "manually" as a normal per100 resource but requires the user to enter in the amount, however the goal I was thinking of was the sales user can just "manually add" the tax when there is a surcharge and that is it, it calculates like the other taxes on the ordered total without any entry.

    We would also use this for damage waiver as well, as its not always applicable.

    0 upvotes

  • Sean Tame

    Credit Card Surcharge?  - I'm out.

    0 upvotes

  • Megan Eve
    • Edited

    I am setting up a registration and the resource I am using for registration has a tax scheme applied to it, but when testing the registration sales tax does not get applied. How can I calculate the tax through registration? Do I need to do something on the price list even though the resource has a scheme. If I click tax inclusive on the price list it takes tax away. 

    - I think I figured it out

    0 upvotes

  • Maggie U.

    Hi Megan,

    Glad you got it figured out - let us know if you need any more help!

    Thanks,
    Maggie

    0 upvotes

  • Megan Eve
    • Edited

    I thought I did. Because we had exempt on our tax marked as yes. So I unchecked it. It worked for registration. But now it is applying tax to things we don't want it to apply tax to (I understand that is how it works) but on a service order item under the other tab if taxable is not checked then in my opinion tax should not be applied. 

    Or does marking tax exempt mean if that is checked then tax on a service order can be taken away if we want it to? If that is the case then I still need help adding tax in registration. 

    0 upvotes

  • Ella Fancett

    Which access privilege would be applicable in 'locking' the tax schemes modification? 

    case: somehow the tax scheme was deleted for a specific tax and it stopped the service orders pulling the VAT therefore, it was not possible to continue with invoicing activities. Is there a way to safeguard/deny modification to tax schemes?

    Thanks! 

    0 upvotes

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