Agvance has flexible tax options that can be applied on Invoices and Bookings. These can be used for additional sales/local taxes, fertilizer, underground water, or any other tax that is calculated as a percentage of dollars charged, the percentage of quantity sold, or the percent of Nitrogen in the affected products. These tax options are called Extra Charges. The setup and usage procedures are the same, but they can be set up to work independently – one working off dollars and one off quantity, for instance.
Another method of adding charges to an Invoice is to establish groups of Extra Charges that might be associated with the sale of particular Products. This feature was designed for motor fuel taxes where several taxes might be applicable on the sale of one product. For more information, see Item Groups.
Setup
Extra Charges may be automatically added to an Invoice or Booking for items such as such as fertilizer tonnage tax or groundwater tax. For the Extra Charges to be used, they must first be established at Setup / A/R / Extra Charges.
- Extra Charge ID – Enter an ID for this Extra Charge of up to 10 characters.
- Product Name – Double-click to select the Product that represents this Extra Charge.
- Dept ID – This defaults based on the Product selected.
- Prod ID – This defaults based on the Product selected.
- Rate – Select Dollars, Quantity, or % of NIT from the drop-down. This is the basis for the Extra Charge calculation.
- Transaction – Indicate if this Extra Charge should be applicable on an AR Booking, AR Invoice, or All.
- Location – Select a Location associated with this Extra Charge.
- Customer – Select the Customers who will receive this Extra Charge.
- Product – Select the Products to be assessed this Extra Charge.
How to Use Extra Charges Options
- At Hub / Setup / Company Preferences on the Product tab, add a Unit called % if one does not already exist.
- Add an item in the inventory that represents the charge to be applied. If the tax is based on dollars, make the Inventory Units set to Each, the Billing Units set to%, the Billing Divisor set to100 and the List Price the percentage to be accessed (1.5% would be entered as1.5 when the Billing Divisor is 100). Set the Unit Weight to1. Make the name of the item descriptive (i.e. Underground Water Tax) so the Customer understands the Extra Charge. If the tax is calculated on% of Nitrogen or Quantity, then the Extra Charge Product should be set up with the same Units and Billing Divisor as the applicable Products.
- In Accounting, at Setup / A/R / Extra Charges, select Add and enter the Extra Charge ID. Double-click in the Product Name field to select the inventory product entered in Step 2, and choose the correct Rate for this particular charge –Dollars, Quantity, or % of Nitrogen. This determines whether the tax is based on the quantity of the taxable line items, the dollars sold, or the percent of nitrogen. Save the Extra Charge.
Note: If an Extra Charge is based on Quantity or% of Nitrogen, then each Product (including the Extra Charge Product) must also have a valid Unit Weight on the item's Profile screen. - At Accounting / Setup / Locations on the Preferences tab, select Extra Charges. Double-click the Extra Charge ID heading to select the appropriate Extra Charges for this Location.
- For the tax to be applied automatically, all inventory items for which this charge applies must have the charge selected by choosing Extra Charges at File / Open / Products on the Sales Activity tab. The Customer involved must also have the Extra Charges selected by choosing Extra Charges found at File / Open / Customer on the Miscellaneous Info tab.
Note: Select the Do Not Print Zero % Line Items option at Accounting / Setup / Location Preferences on the Invoice Printout tab so the extra zero % tax items do not print. - When invoicing or booking, after selecting the Products, select Extra Charges and the applicable charges calculate. They will appear as separate line items on the Invoice or Booking.
