Sales Tax Questions
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Sales Tax Questions
We have a 2.5% sales tax but it is only up to the first $500 of a purchase. How can I set this up? How do you manually add sales tax to an order?
- ricmorin
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Re: Sales Tax Questions
I wish I could help.I have little experience here since NH has no tax. Anyone shed some light on this?
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com
I find my life is a lot easier when I use Special Orders
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com
I find my life is a lot easier when I use Special Orders
Re: Sales Tax Questions
Hi Alaskatech,
Based on your post it sounds like your area has a sales tax (part sale) of 2.5% up to $500 and then 0% anything higher than $500. The best way to handle this requires setting up a few areas in Manager SE.
For starters, create a material tax in [Configurations -> Standard Tables -> Tax Rates] at 2.5% with the default box checked. This will make it so all customers and vehicle use this 2.5% tax rate for part sales. This should have already been done.
Then, create a unique GL code that will be assigned to the inventory part we create in the next step. This will make it easier for your accountant come tax season. [Configurations -> Standard Tables ->Account Classes]
Next create a part in inventory with user entered sale Price of $12.5 (500x0.025), Account Classes created from the previous step and make the part non-taxable. This part will be used anytime the part sale meets or exceeds $500.
So now anytime an order exceeds $500 in part sales, add this part to the order. In the order tab, go to Options -> Tax Rates Applied and set the order to non-taxable. When the order is posted, you'll use the Revenue By GL Code report to see the funds collected for this tax.
Hope this helps!
Based on your post it sounds like your area has a sales tax (part sale) of 2.5% up to $500 and then 0% anything higher than $500. The best way to handle this requires setting up a few areas in Manager SE.
For starters, create a material tax in [Configurations -> Standard Tables -> Tax Rates] at 2.5% with the default box checked. This will make it so all customers and vehicle use this 2.5% tax rate for part sales. This should have already been done.
Then, create a unique GL code that will be assigned to the inventory part we create in the next step. This will make it easier for your accountant come tax season. [Configurations -> Standard Tables ->Account Classes]
Next create a part in inventory with user entered sale Price of $12.5 (500x0.025), Account Classes created from the previous step and make the part non-taxable. This part will be used anytime the part sale meets or exceeds $500.
So now anytime an order exceeds $500 in part sales, add this part to the order. In the order tab, go to Options -> Tax Rates Applied and set the order to non-taxable. When the order is posted, you'll use the Revenue By GL Code report to see the funds collected for this tax.
Hope this helps!