Sales tax is calculated per line item according to the tax rates/codes that apply to that line. Each line is calculated separately and then those line item sales tax totals are added together for the total sales tax amount that is displayed on the Invoice.
A default Sales Tax Multiplier can be established for each location at Accounting / Setup / Locations on the Preferences tab. At invoicing, the Tax column on any line item that is taxable can be manually selected and it will calculate at the default rate set on the Preferences tab.
Note: If sales tax needs are not addressed by Agvance's standard functions, please contact SSI Support for assistance configuring alternative processes.
How to Have the Sales Tax Automatically Calculated
Two things must be in place for sales tax to automatically calculate – the Customer and the Product must both be marked Sales Taxable. Therefore, if a Customer or Product is ever sales taxable, then mark them as such on the Customer/Product file. Line items may be deselected manually at the Invoice screen if necessary.
Agvance’s standard sales tax options can be controlled per line item on the Invoice.
- Check the Sales Taxable option at File / Open / Products on the Sales Activity tab.
- If the Location Preference to Use Tax rate from Customer and Ship To is selected (found at Setup / Location Preferences), the sales taxable state and a special rate can be set on the Customer file by selecting the Sales Taxable option at File / Open / Customers on the Miscellaneous Info tab, or by selecting Addresses found at the bottom of the Customer file. If a special Sales Tax Rate is set at this screen, this rate overrides the location’s default rate.
- If tax codes exist in the data, the tax calculates based on those codes. To change the sales tax calculated, at the Invoice screen, select the Tax tab and type in a different amount in the Sales Tax column of the grid. If no State/Adjustment Codes exist, to change the tax rate and have the computer recalculate automatically, enter the tax rate in the Rate field in the lower left corner and then choose Apply to all products. To edit the tax on the individual lines, the tax rate may be typed on each line of the Tax tab.
If a customer is tax exempt on a product that is typically taxable, the Exemption reason may be selected by line item on the Tax tab or on the Invoice tab by right-clicking the Tax option at the invoicing screen. This allows a selection from the Tax Exempt Codes that have been entered at Setup / A/R / Sales Tax Exemptions. A summary of the tax exempt sales prints on the Totals page of the Sales Register (Reports / A/R / Sales / Sales Register) and on the Sales Tax Summary report found at Reports / A/R / Sales / Sales Tax Summary.
