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Flex4: Sales Tax Rules

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Sales Tax

Overview

Each resource type in Flex can have sales tax applied to it. For example, you can have sales tax apply to rental and retail items, but not to labor and travel.

You also have the ability to apply a different sales tax rate for each of your business locations if your Flex subscription includes more than one location. This is especially applicable to customers who have multiple locations in different states.

Setting up a Sales Tax Rule

  1. On the System Settings menu, click Sales Tax Rules.
  2. Double-click Sales Tax.
  3. Enter a percentage value in each category that you want to charges sales tax (example: 5% = 5).

sales-tax-setup.png

Each value will automatically save. There is no save button on this page.

The "Default" column is used to apply sales tax to line items that don't technically belong to a specific resource type, like a Misc line item.

Adding a New Sales Tax Rule

  1. On the System Settings menu, click Sales Tax Rules.
  2. Click New Sales Tax Rule in the Workbench Menu.
  3. Give the new rule a name and a code (For example, Name: New Tax Rules. Code: NEWRULE).
  4. Click CREATE.

After creating a new sales tax rule, you might have to reload the Sales Tax Rules tab in order to see the new rule. Refer to the previous section, Setting up a Sales Tax Rule, to learn how to set the sales tax values for your new tax rule.

Enabling and Setting Default Sales Tax Rules on Project Elements

Each sales tax rule that you create will need to be enabled on the project elements (Quotes, Invoices, etc.) that you want to use them on.

  1. On the Projects menu, click Project Elements.
  2. Double-click the element name that you want to enable a sales tax rule on (Quote, Invoice, etc.).
  3. Click the Accounting Options tab.
  4. Find the Enabled Sales Tax Rules section and check the box next to the sales tax rule that you want to enable.
  5. Click UPDATE.

enable-sales-tax.png

You can also set the default sales tax rule on this page (see the Default Sales Tax Rule section on the Accounting Options tab). For example, if you set a default sales tax rule for your Quote element, that sales tax rule will automatically apply to any new Quote you create. If a contact has their own default sales tax rule, then the contact’s default will override the Quote element default.

Setting a Default Sales Tax Rule for a Contact

  1. Open the contact that you want to set a default sales tax rule for.
  2. Click the Terms/Skills tab.
  3. In the Trading Terms section, choose a default sales tax rule from the Standard Tax Rate drop-down menu.

standard-tax-rate-contact.png

All changes made in the Trading Terms section are saved automatically. There is no save button on this page.

Now whenever you use that contact as the client on a Quote, the default sales tax rule will be used, overriding any global default tax rule set up on the Quote element. Also note that any contact who has the relationship of Employee to a company contact entry will inherit the trading terms of their company.

Sales Tax Categories

You can enable multiple sales tax categories, then have each category show on financial documents. See video for instructions:

 

Sales tax categories are especially useful for companies that need to show a breakdown of multiple different taxes that are being charged. For example, in Canada, you often have to break down taxes by PST and GST.

Deleting a Sales Tax Rule

  1. On the System Settings menu, click Sales Tax Rules.
  2. Double-click the sales tax rule that you want to delete.
  3. Click Delete Sales Tax Rule in the Workbench Menu.

 

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