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AvoAdmin
Post  Post subject: Taxes and Tax Groups in AvoBase  |  Posted: Wed Apr 30, 2014 7:26 am
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Taxes in AvoBase are stored under "Groups" because taxes can be based on a number of things. In some places, taxes are straight up a single number - so between $0.01 and $99,999.99 - it is simple tax at 6.25%. But some places each bracket of money - say $0.01 to $50.00 is 6.25 - but $50.01 through $100.00 is 7.25. And in addition to this in Canada they have compound tax which takes the invoice, taxes it - then taxes it again by the compound rate.

Tax Groups and Rates

Taxes in AvoBase are broken down into two categories. One, a Tax Group, and two, a Tax Rate.

Tax Groups contain Tax Rates. You can have as many Tax Groups as you want, and as many Tax Rates within those groups as you need.

Clicking on the New Button brings up the Tax Group Editor.

If the Tax Group is active, you will be able to select it from Orders and Products.

The Sales Tax Name can be any name you wish to distinguish your Tax Group. Tax Rates

Taxes in AvoBase are broken down into two categories. One, a Tax Group, and two, a Tax Rate.

This is the Tax Rate Editor. It allows you to maintain as many Tax Rates you need for your Tax Group.

Click on the New Button to create a new Tax Rate or Edit to edit an existing Tax Rate.

Enter a Tax Name. Examples are "State Tax", "Local Tax", "GST Tax", "PST Tax"

You can enter anything you want for Tax Description.

The Tax Type can be either Simple or Compound.

Simple Tax Rate: Individual fees, shipping and line items are taxed by this rate.

Compound Tax Rate: After all taxes are accounted for and an Invoice Total is created, the Invoice Total is then calculated against this Compound Tax Rate - and the Invoice Total is updated to add the new Tax.

The Starting Amount must be at least a number starting with 0.01 or greater (you can do 1.50, or 100.50) and the Ending Amount must be a number with 0.01 or greater.

How this works. AvoBase will first check which Tax Group the Line Item, Fee or Shipping is using. It then compares the amount of the Line Item, Fee or Shipping against the Starting Amount and the Ending Amount. If the Item total is within those parameters then the Item is taxed at that rate. Compound Tax Rates are calculated after the whole Invoice has been totaled.

Example 1:

Tax Rate 1 - Simple - 0.01 to 99999.99 - 1.0%

Invoice would taxed at 1.0%.

Example 2:

Tax Rate 1 - Simple - 0.01 to 99999.99 - 1.0%
Tax Rate 2 - Simple - 0.01 to 99999.99 - 2.0%
Tax Rate 3 - Simple - 0.01 to 99999.99 - 3.0%

Invoice would be taxed at 6.0% (a total of ALL the items).

Tax Rate 1 - Simple - 0.01 to 99999.99 - 6.85%
Tax Rate 2 - Compound - 0.01 to 99999.99 - 3.25%

Invoice would be taxed at 6.85%. After Invoice is fully calculated, it would be then re-taxed at 3.25% Compound Tax.


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