Taxes and Adjustments – Add/Edit

 

1.  Click Settings  (upper left corner)

2.  Choose Setup  

3.  Select Taxes & Adjustments .

4.  Select existing code to edit or delete or click Add

5.  Enter the information as follows and click Save

 

Field

Details

Code

Enter in Code for the tax.  E.g. TAX or PST.

Description

Enter a Description,   EG:  “Sales Tax” , “Deposit+, “Margin Discount” etc

Recoverable?

Indicate if this is a recoverable tax – this is a tax that is applied as part of your purchases but will receive back as a credit from your tax agency.

Choose either Percentage or Value

Choose either Value or Percentage from the list. Some taxes or adjustments are a fixed amount and some can be a percentage calculation, in this case choose amount (both amounts can be edited within an invoice)

Amount

Indicate the amount (by currency) or the percentage if percentage chosen

Account

Enter the Account that the Tax is applied to in your accounting records.  The chart of account  balances to be applied to in the Accounts window
E.G.
GST amounts get posted to Sales Tax Account, Keg Deposit posts to Beer Deposit Account etc.

 

Apply Purchase Amounts to Item Accounts

In some instances you may wish to apply the tax amount calculated to an item and update the amount to the purchased item rather than to the tax account.  For example, a tax on a cleaning supply, you can choose to add the cost of the tax applied to the cleaning supply to the cleaning supply account rather than the normally assigned tax account.