Tax Table

Tax Tables

To access the Tax Table start the INSTALLATION Workshop program and from the menu select Install|Taxes|Tax Table.

The tax calculator table is used to enter CAPITAL's basic stock item tax rates.

R (Tax Rate)

The tax rate/code. This is a number between 1 and 9999. The first 9 tax rates are fixed and cannot be removed from the system.

Name

The name/description of the tax rate. For example, "30%". The name of the rate can be printed on CAPITAL's forms using form commands such as TAX%. To print the tax code use TAXCODE. For more information on form design see the Visual Builder program.

Tax Formula

The formula used to calculate the rate. The letter I refers to "internal" or the current stock item price as it appears on a transaction.

While the tax rate can be calculated based on a fixed cost or sale amount, i.e., price "F" in Stock Control for example, most tax calculations are typically based on the invoiced amount. The formula I * .10 applied to the amount $100 would result in:

100 * .10 = 10, or 10 per cent of the invoiced amount.

Add (To Total)

Indicates whether to add the tax amount to the invoice total. Wholesalers typically add the tax portion of a billed item to the invoice total. Users that prefer to show a total retail price, and calculate the tax portion as a portion of this price can untick the Add option.

CAPITAL assumes that tax is always added to purchases, stock returns and stock receipts. The Add option has no effect on these types of transactions.

Sub (Subtract ex tax)

This option rarely applies to GST.

Select this option if you want the tax amount to be subtracted from the invoice line item (and hence, invoice total), if the sale is tax exclusive. This option is usually (but not necessarily) used when the Add option is unticked. Consider the following scenario:

Sale price = $100. Tax rate = 10% and Add To Total option is unticked.

In this case the unit sale price (including tax) will be $100, with $10 (10% of $100) as the tax proportion of the total price. (If the Add To Total option had been ticked then the tax amount would not have changed, but the unit sale price would have been $110.)

Now consider the situation where your sale price (including tax) is $100 but your customer had decided to purchase the goods exclusive of tax. In this case, if you do not intend to charge the factored in tax of $10, you would subtract the inclusive factor of $10 from the sale total. Thus: $100 (includes tax) less $10 = $90

If you want CAPITAL to subtract the inclusive tax amount when a customer purchases ex tax, then tick the Subtract Ex Tax option. The tax amount is calculated on your final unit sale price (after discounts have been applied) and the standard tax formula amount will be subtracted.

If there is a Customer Special Price Rule applied to a sale price that also incorporates a custom sales tax formula, then this option will have no effect on the unit sale price. The Customer Special Price Rule sales tax formula calculation will be used instead.

Tax Base

The tax base is the stock item or invoice sell price that represents the base price upon which the tax calculation is performed. This formula or price field is only used by the tax reporting system to assist in presenting "how" or upon what basis, the tax amount of an invoice was arrived at. It does not aid in the actual calculation of tax. If left blank, the invoice line item sell price is assumed the basis of the tax calculation.

The Tax base does not normally need to be set or changed for GST.

For example, if the tax calculation is based on price "C" multiplied by 12 per cent then the actual tax formula would be: C * .12. The tax base would be used to show (during report printing) what the 12 percent was of. In this case, the tax base would be: C

Purchase

This field is normally left blank. If specified, CAPITAL's purchase order, stock receipt and stock return systems will choose this tax formula instead of the standard tax formula.

Sales Tax

This can be useful if you have nominated that a particular stock price field represents the tax amount. Since stock price fields are only updated after a purchase order is delivered, a change in purchase price on a purchase order may not automatically be reflected in a change of tax. Entering a formula in this field will ensure that the correct tax amount is always calculated.

GST

If the pricing you receive from your suppliers is ex GST and the pricing you issue your customers is inclusive of GST, it can be helpful to define an ex GST formula here. For example:

Inclusive GST formula: I / 11 = 10% GST (invoicing)

Exclusive GST formula: I * .1 = 10% GST (purchasing).

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