2/15/2019 Release - Automated Tax, Tax Breakdown

Automated Tax Calculation on Invoice

We implemented an automated tax rate selection when creating an invoice. This functionality will automatically look up the correct tax rate based on the chosen service address. There is

  • no more need to worry of "getting it right",
  • and no more time spend entering tax rates manually into the settings for later use.


How do I use automated tax calculation?

There are nothing to setup or activates, but we suggest to confirm in Settings --> Accounting --> Tax Codes that you do not have configured a default tax rate.

To remove a default tax configuration:

  • Go to Settings --> Accounting --> Tax CodesManualTax-01-Settings.png
  • Simply look for the tax with the "Default" notationDefaultTax-01-Settings.png
  • Click "Edit Tax Code"
  • Remove the "check" for the default boxDefaultTax-02-Settings.png
  • Click "Save"
  • You are ready to use automated taxes on your invoices!


What if I only want to use automated tax calculation some of the time?

We imagined that there might be a use cases for "overwriting" an automated tax rate, so we have it covered. After the automated tax is applied, you can  overwrite the tax rate by using the tax drop-down on the invoice. Simply select a manually configured tax from the list and the tax rate and amount will be updated.

Manual Setup of Tax Codes

We recommend leveraging the automated tax calculation during invoicing.
However we do still support manual entry of tax codes when customization is required.

What are tax codes?

"Tax codes" are groupings of "tax components" that together sum up total tax rate charged on an invoice.

What are tax components?

"Tax components" are comprised of unique information describing what rate a tax agency will expect to collect from a sale.

  • Tax component = tax components name + component agency + component rate


How do I create a manual tax code?

Again, we hope you use our automated tax selection but if your company requires manual creation of tax codes follow these simple steps:

  • Go to Settings --> Accounting --> Tax Codes

  • In the message about Sales tax click on the "add a tax code manually" link
  • In the Add new tax code pop-up enter the tax information.
    The Tax code name MUST be unique.
    The tax component(s) are reusable. Enter an Agency once and reuse it as needed.

Tax Breakdown

All automated tax rates will be broken down into its components in the background. This will allow soon to run reporting by tax agencies. For example gross sales and tax reporting by city, state, county, etc.

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