| Tax Codes & Variable Tax Rates |
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This is a Level 4 and higher feature. AnyOrder has the ability to work with different tax rates. If you need to charge different rates depending upon the type of product or where products are sold, then you'll want to take advantage of these features. This Feature Not Needed if You Have One Tax Rate You do not need to use this feature if you have only one tax rate. (To set-up one tax rate, select FILE >> BASIC PROGRAM SET-UP. Click "Sales Tax" tab and indicate the rate.)
Accessing the Variable Rate Set-Up Screen. If, however, you must deal with more than one rate or if more than one tax is involved (such as in some provinces in Canada), you'll want to set up tax codes. To do so, select INVOICE TOOLS >> TAX RATES >> SET-UP VARIABLE TAX RATES & TAX CODES. The following screen appears:
How to Set-up Tax Codes The spreadsheet on the Tax Set-up dialog box (above) allows you to add or modify tax codes. In the first column, type in a code. In the second column, type in a name for the code. The name will appear on a pop-up list from which you can select. You can set the code field so that it always capitalizes the code--or you can set it so that is case sensitive. An 'All Capitals,' setting make things easy if you just have a couple of codes. Use case sensitive when you have lots of codes. If you have only one tax rate for each code, there's only one other column you need to use: 'Overall Tax Rate' column. Enter the tax rate as a decimal, i.e. 0.06500 = 6.5%. More than One Tax on Invoices The other columns may be used if the Overall Tax Rate is made up of two or more taxes. These are called "Component Taxes." Be sure to indicate whether the component tax should include shipping by placing a checkmark in the "Tax Shipping?" column. Note you can scroll the spreadsheet to the right to access more component tax columns. Make sure that the overall rate is the sum of individual component tax rates. If you have TWO (2) component taxes, you can have each listed on separate lines on the printed invoice by placing a checkmark under the two asterisks: * *. When you have two or more taxes, AnyOrder combines the taxes into one amount on the Main Invoice Screen. This is done to save room, but you can look at a more complete picture. If you need to view each of the tax amounts, double-click on the tax and AnyOrder will itemize each component. In other words, if the tax is 26.54, double-click on the number: 26.54 and a window will pop-up with each of the taxes itemized. Additionally, as noted above, if you have two taxes, you can indicate to AnyOrder that you want both of the taxes itemized on the printed PO. Remember, to do this, place a checkmark in the column indicated with the two asterisks ( * *). Designate Names You can give names to each of the component taxes. To do so, first select the proper row on the spreadsheet. Then click on the "Designate Names" button. Fill in the blanks for each component tax. You have up to 8 characters of space for each name. When you exit from the "Designate Names" dialog box, you will see the names of each component tax just above the spreadsheet. You can designate name for each tax code. If you have more than one tax code, the names displayed just above the spreadsheet will change as you select different rows on the spreadsheet. The names that you designate will also appear on the tax report (discussed below). And, if you have one or two taxes, the names will also appear on the printed invoice. Note that when it comes to the printed invoice, tax code names have priority over those that you enter in Basic Set-up or in More Options (accessed from the Print Invoice dialog box). In other words, if the invoice you are printing has a tax code on it, and you've designated a name for the tax, that's what will appear on the printed invoice. If you haven't designated a name, then the name (if any) that you have indicated in Basic Set-up or "Printing More Options" will be used. Finally, if you haven't designated any names, then the word "tax" will be used. Optional Tax Note Use "Optional Tax Note" if . . . 1) You are required to indicate the names of the component taxes and percentages 2) You need to include a tax ID number; 3) You need to include a GST or VAT number (Canada, UK and other European Countries). For example, the Optional Tax Note for Canada might read: Tax (GST 6% / PST 7%) GST #9999 9999 RT0001. This note will appear just to the left of the amount of tax on the printed PO. (Canada and other users: you can also place each tax on a separate line.) Calculating the Second Tax Based on Selling Price and First Tax Some provinces in Canada (and other countries), have a tax structure which requires the second tax to be based on the cost the items PLUS the first tax. You can configure AnyOrder to do this by scrolling the spreadsheet to the right. Look for "Calculate 2nd Tax on Selling Price Plus 1st Tax" and place a checkmark here. Helpful Hint When you are on the Main Invoice Screen, you can obtain information on how tax is calculated. This feature can be used for one tax, but it is particularly useful when dealing with two or more taxes. To do so, double-click on the tax amount. Let's say the tax is 4.35. Double-click on 4.35. AnyOrder will display an informational box with details on how the tax is calculated. How to Code Your Invoices Once you have codes set-up, you can access them by placing your cursor in the blank following the "Taxable" checkbox on the Main Invoice Screen. Double-click and press CTRL+L to bring up a list of codes. Select the appropriate code, and the invoice will be taxed according to that rate. Always select from the pop-up list. Typing in the code will not transfer all necessary tax information needed to properly calculate the tax. It is also possible to change the tax rate on individual invoices by selecting INVOICE TOOLS >> TAX RATES >> CHANGE TAX RATE. The option is available, but it's not recommended. It throws off the figures in a sales report. If you use tax codes, however, the sales report will provide accurate taxable amounts for each tax code. What if a Code's Tax Rate Changes? Government agencies change tax rates from time to time. When they change, you can almost count on them going up but occasionally a rate goes down. When a tax rate for a tax code changes, you'll need to create an entirely new code. That way all of your old invoices are calculated using the old rate (as they should), and all new invoices are calculated using the new rate. It's the same situation with reports. You can finish out the year by using the old code to provide you with a sum total of the taxes, and thereafter, use the new code for tax reporting purposes. Also, don't forget the Customer Database. If the tax code is associated with one or more customers in the Customer Database, be sure to change the code there as well. There's one other situation that may occur. Let's say that you set up tax codes, but after using the tax code on a few invoices you realize that you originally used the wrong rate. First, correct the rate. Then run through each your invoices and re-select the code for each invoice. You need to re-select the code because AnyOrder saves tax information with each invoice. The only way to change the old information to the new is re-select the code from the pop-up list. Taxing Some Products and Not Others When the taxable box is checked, all products listed in the item area will be taxed. However, there may be situations where you may not want everything on the list taxed. To designate a product as non-taxable, type a "\NT" (for non taxable) after the product's name in the item column. (If a product's name fills the entire column, you may need to slightly abbreviate the name.) You can also do this automatically by clicking on the item and selecting PRODUCT TOOLS >> DESIGNATE AS NON TAXABLE ITEM. More information Taxing All Invoices or for a Specific Customer If all or most of the invoices that you issued should be taxed, you can set the program to check the taxable box each time a new invoice is created. To do so, select GO TO >> DEFAULT VALUES FOR NEW INVOICES. Place checkmark in the Taxable box. All new invoices will automatically be taxed. (If you have an occasional invoice that should not be taxed, you can turn off the taxable setting on the new invoice by removing the checkmark on the Main Invoice Screen.) If the "Taxable" box should always be checked for sales to a specific customer, you can set it up in the Customer Number Database. To do so, select MAIN TASKS >> CUSTOMER ADDRESSES AND NUMBERS. Place checkmark beside: "Taxable sales." You can also assign a consistent tax code for sales to the customer by entering the code in the appropriate blank. Generating a Variable Rate Tax Report To generate a tax report, select MAIN TASKS >> MASTER LIST OF SALES REPORTS. Click on the "Tax Rate Report" button. From the list that appears, select one or more tax rates for which you want to run a report. To make a selection, click in the 'Y' column. You'll also need to indicate the range of dates that the report should cover. You can click on the "C" button to bring up a calendar to select from. Or you can click on the "Options" button to bring up several different date range options. When you are ready, click on "Start Process" button. Tax Rate Report After clicking "Start Process," AnyOrder will assemble all of the necessary data and generate the "Tax Rate Report." If you scroll the spreadsheet to the right, you'll notice two figures which include all sales. One is the Total Sales figure. Taxes and shipping charges are not included in the Total Sales figure. There is one exception. If shipping is taxed by your governmental agency, then Total Sales includes shipping. The non-taxable figure also includes ALL sales. All other figures are limited to the specified tax code. The report includes both overall tax and local tax (if any). For more information on the two figures, see the explanation found in "Setting Up Variable Tax Rates" above. If you need to print the report, click on the "Edit/Print Spreadsheet." This activates Microsoft Excel (or a spreadsheet program of your choice). Once the spreadsheet appears, you can make additional adjustments, format the information and print it. More Information For more information on taxes, see: Tax Fields on the Main Invoice Screen Sales Tax Report (Primary Rate) Designating Items as Non-taxable
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