Sales Tax Questions

Manager SE Settings, Defaults, Database
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Alaskatech
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Sales Tax Questions

Post by Alaskatech »

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?
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ricmorin
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Re: Sales Tax Questions

Post by ricmorin »

I wish I could help.I have little experience here since NH has no tax. Anyone shed some light on this?
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LazyTurtle

Re: Sales Tax Questions

Post by LazyTurtle »

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]
AccountClasses.jpg
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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.
TaxCapInventoryPart.JPG
TaxCapInventoryPart.JPG (68.62 KiB) Viewed 4312 times
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!
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