How do taxes in AYS work?

Taxes that you have to collect on goods and services that you provide can be complex. AYS has a flexible configuration that will help you meet the requirements of your business.

Taxes can be applied globally, by region (such as State or Province), and on a per-customer or per-invoice basis. You can apply taxes to portions of your charges, such as parts, labor, handling, shipping and travel.

Provinces/States

You can enter provinces or states in this area, and each one will have independent rules. as shown to the right. Each Province or State can have a different Registration number, rate, and tax rules. Whenever you enter the corresponding Province or State in a Repair Order or Sales Invoice, the corresponding rates and rules will be copied to that record.

Important

It is important to note that the rates and rules are copied to the new record. If you save the Repair Order or Sales Invoices, and then later change the tax values or rules, they will not automatically be displayed in the Invoice. You will need to manually change the invoices or perform batch tax updates on all of the open invoices.

In addition, you can enter one default (or blank) State/Province, you can use this for the taxes of the location of your business, and is useful for quick entry of walk-in customers. This rate will be applied if no State/Province is entered in a new Repair or Sales Invoice. To create this default tax, leave the entry box blank and click the “New” button. A new record named “[None]” will be created in the list, and you can apply the default tax rules to that record.

You may have certain customers that merit a certain tax rate different from the region, perhaps non-profit or government employees. To set unique tax rates for these customers, first select the option to “Allow user to edit tax rules on individual records” in the Setup Taxes screen:

Next, in the customer record, select the “Billing Address/Info” tab and edit the tax rules for that customer. The global tax rules will not be affected.

Whenever you create a new Repair Invoice or Sales Invoice for that customer, the customer’s tax rates – and not the global tax rates are copied to the new Invoice record.

Invoices can also have unique tax rules, similar to the Customer record. On the Invoice tab of a Repair Order or Sales Invoice, you can select or deselect which tax to apply, and adjust the tax rate for that invoice only. Any changes will not affect either the global or the customer’s default tax rate.

Taxes can be charged on specific line items on your invoices, and not simply the entire subtotal. To configure which are taxable items, under Setup – Taxes, choose the appropriate Province/State and adjust the checkboxes to the right:

As shown above, you can choose to charge tax on parts, labor, shipping, handling or travel.

If you want to adjust tax rules for individual records (such as for Customer or Invoice records), you will have to make one extra step, as the interface is hidden. With the cursor in the Tax rate (percentage) field, press “Alt+Right Arrow”. You should see a small dialog that will let you change the rules for that record.

As with all of the individual records, any changes made will not affect the global tax rules for that area.

AYS Versions: All
AYS Editions: All
Operating Systems: Any
Databases: All