Tax groups are used to settle taxes on various goods in our everyday lives.
The tax groups can be found under
Lager/Maintenance/Tax groups
Note! To use the tax groups, you must enable the tax module under
Company/Maintenance/Turn functions on/off
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After creating a tax group, it must be assigned to an item.
NOTE: If you want to exempt a debtor or creditor from the tax, you can create a debtor/creditor group for them.
Read more under debtor groups or creditor groups
NOTE: If you create a credit note by reversing the sign on an invoice with taxes, remember to remove the tax, otherwise it will count twice.
How should the tax be shown on the invoice?
The tax can be calculated as "Amount per unit", "Fixed amount", "% of line net amount", "% of line cost amount" and "Weight". You then enter the "Factor", which is either an amount or a percentage, depending on your selection.
In the "show on invoice" field, you can decide how the tax is displayed on the invoice:
"
Order line" means that a new order line is created with the tax on the invoice. If the "Item number" field is filled in on the tax, the order line will be assigned this item number and the posting will follow this item number as if you had entered this item on the order line yourself.
"
Incl. in unit price" will increase the unit price by "factor", but will not book it as "revenue". Even if the price of the line is increased, the tax will still be booked separately and the sale will be booked with the increased price including tax.
The tax will be booked by "account" and "counter account", unless you have given the tax an item number, then it will be booked by that item number.
"
Hide" means that the tax will only affect the accounting. It will not change anything on the invoice. The accounting is the same as "Include in unit price", except that the customer will not be charged the tax.
"Only once" means that no matter how many items have this tax selected, only one line of this tax will be added to the order itself. You must use an item without a sales price, as the Factor field represents the tax value.
"Only once (sum)" means that a total tax amount is shown on the invoice if there are multiple lines with the same tax on the invoice.
Finally, there are two fields. Whether tax should be calculated on sales and/or purchases.
Create a tax group
Select
Lager/Maintenance/Tax groups
Click 'Add' in the ribbon or
Ctrl+N to add a new group.
Enter a tax group value and a name for the group. Click 'Save' and then click 'Prices' in the menu ribbon to create the tax lines themselves.
Click 'Add' in the menu ribbon or
Ctrl+N to add a new tax line.
Fill in the fields with the values needed for each tax:
Description of fields (tax group lines)
| Field |
Value |
Field Description |
| Tax calculation |
Amount per unit |
To calculate the tax on a fixed amount per unit on the order line, select this |
|
Fixed amount |
If the fee should be calculated on a fixed amount for the order line, regardless of the number of units, select this |
|
Percentage of net amount |
If the tax should be settled as a percentage of the net amount, select this |
|
Percentage of cost amount |
If the tax should be settled as a percentage of the cost amount, select this |
|
Weight of the item |
If the tax is to be calculated on the weight of the item, use this, select the item in question in the "Item" field, and the weight must be entered on the item card. |
| Factor |
|
Amount, percentage or weight on which the tax is calculated. |
| Tax account |
|
Here you select the financial account to which the tax should be posted (This is only if you are not using a product). |
| Counter account |
|
Here you select the counter financial account to be used for counter posting (This is only if you are not using an item). |
| Item |
|
Set up an item for the tax itself, so you can control VAT and posting via the item groups. If you choose for the tax to form its own order line, it can be given this item number and then it will also be assigned to this item number.
Note! If an item number is used, do not enter prices for this item unless you want both the price of the item and the tax amount posted in the same order.
Note! If a product number is used and a cost price is entered on the product number corresponding to the price of the tax, and the field Show on invoice is filled in with 'Order line', this cost price will automatically be transferred to the invoice line when invoicing sales orders, so that the tax is included in both the cost and sales price on the invoice, and thus the DB/DG on the invoice is more accurate. |
| View on invoice |
Order line |
The tax line appears on the invoice, under the item itself. If you have selected an item as the tax line, this is what is shown.
The tax is posted to the selected item on the order line, or the set up tax item.
Note: Tax account and counter account are not used when selecting "Order lines"
Note: Does not work with Includes in cost
Note: VAT is deducted from the tax |
|
Included in unit price |
The tax is included in the unit price shown on the invoice. Entries are made according to the account assignment that is set up, either on the tax line, or on the tax item, and on the item with the tax in question.
Note: Tax account is debited. Counter account is credited.
Note: VAT is deducted from the tax |
|
Hide |
The tax is hidden on the invoice, but is posted according to the account assignment that is set up, either on the tax line or on the tax item.
Note: Counter account is debited. Tax account is credited.
Note: VAT is not deducted from the tax |
|
Only once |
If you select this option, the tax will only appear once on the order, even if several items have this tax.
Note: Tax account and counter account are not used when selecting "Only once"
Note: VAT is deducted from the tax |
|
Only once (Sum) |
If you choose this option, the tax will only appear once on the order. If multiple items have this tax, the total tax for the items sold will appear at the bottom of the invoice.
Note: Tax account and counter account are not used when selecting "Only once (sum)"
Note: VAT is deducted from the tax |
| Sale of products |
|
If the tax is to be used for sales, check the box.
Note! It is often different how the tax is handled in relation to purchases and sales. It may therefore be necessary to create two lines under the taxes, one with a check mark for purchases and the other for sales. |
| Indkøb |
|
If the tax is to be used for purchases, check the box |
| Include in cost price |
|
If the field is checked, this tax will be added to the cost price of the goods receipt entry.
Remember to check the field Indkøb.
At the same time, you must fill in the Counter account field with the account you want to credit the tax to.
The tax is debited to the purchase account specified on the item group associated with the item to which the tax is added or to the purchase account specified on the vendor group.
Note: Does not work with 'Show on invoice = Order line' |
| Valid from / to |
Date |
The period of the fee. |
| Delivery date |
Delivery date |
Check the box to indicate whether the system should look at the delivery date rather than the invoice date. |
Description of buttons on the ribbon
Below is a description of selected buttons on the ribbon
| Button |
Button description |
| Exempt from tax |
Under the Tax exempt button, you can add lines with the debtors/creditors to be exempt from the current tax. |
Posting with "Order lines"
Note: Tax account and counter account are not used when selecting "Order lines". If you want a different account assignment than the one the item with the tax is set up to use, you must create an item for the tax, as well as an item group with the desired account assignment and select this item on the tax group in the item field.
Note: VAT is deducted from the tax
Example of tax calculation = Amount per unit
Setting up the charge
The example below shows a tax with an 'Amount per unit' and a factor of 10.00.
The tax is used in both sales and purchases.
Simulation of the item on sale of goods
The item has a cost price of 10.00; selling price of 20.00; and the fixed amount per unit at 10.00, as you can see in the simulated records below.
Note: VAT is deducted from the tax!
Invoice layout simulation
Example of tax calculation = Fixed amount
The example below shows a tax with a 'Fixed amount' and a factor of 10.00. A fixed amount is an amount regardless of the number of items sold.
The tax is set to be used in both sales and purchases.
Simulation of the item on sale of goods
The item has a cost price of 10.00; selling price of 20.00; and the fixed amount is set to 10.00.
Cost of goods sold is 3*10.00; sales are 3*20.00 and because the tax is set at a fixed amount of 10.00, the tax is only 10.00
Note: VAT is deducted from the tax!
Invoice layout simulation
Example of tax calculation = Percentage of net amount
The example below shows a tax with 'Percent of net amount' and a factor of 10.00. The tax will be 10% of the net amount of the quantity item* net amount.
The tax is set to be used in both sales and purchases.
Simulation of the item on sale of goods
The item has a cost price of 75.00; selling price of 123.00; and percentage of net amount is set to 10%.
The cost of goods sold is 75.00; the sale is 123.00 and the tax is 10% of the net amount 123.00, namely 12.30 (123.00 is the sales price excluding VAT)
Note: VAT is deducted from the tax!
Invoice layout simulation
Example of tax calculation = percentage of cost amount
The example below shows a tax with 'Percent of cost amount' and a factor of 10.00. The tax will be 10% of the cost price of the quantity of goods* net amount.
The tax is set to be used in both sales and purchases.
Simulation of the item on sale of goods
The item has a cost price of 65.00; selling price of 10.00; and percentage of cost is set to 10%.
The cost of goods sold is 65.00; sales are 100.00 and the tax is 10% of the cost amount 65.00, namely 6.50
Note: VAT is deducted from the tax!
Invoice layout simulation
Example of tax calculation = Weight
The example below shows a tax with 'Weight' and a factor of 5.00. The tax will be 5* the weight of the item.
The tax is set to be used in both sales and purchases.
Simulation of the item on sale of goods
The item has a cost price of 100.00; selling price of 200.00; weight of the item is 3.
The cost of goods sold is 100.00; the sales are 200.00 and the tax is 5, i.e. the tax is 5*3, namely 15.
Note: VAT is deducted from the tax!
Invoice layout simulation
Example of mortgage tax
Here is an example set up with a deposit of 1½ liters of soda.
In this example, the Pant charge is created with an item, Pant.
The tax must be on a separate account, and therefore a product group 'Deposit tax' is created, which assigns the deposit to two accounts in status.
Here the item itself is created, the deposit tax, tax group '1' is selected in the 'Tax group box'.
The tax itself is created under Lager/Maintenance/Tax groups
Here you can see a tax group '1', with the Mortgage tax.
The mortgage tax is created here without VAT, as VAT is deducted from the tax.
The deposit must be shown on the order line in both sales and purchasing, and the deposit must be posted to separate accounts, therefore an item 'Deposit' is assigned
Here the item 'Deposit' has been created and assigned to the item group 'Deposit tax'.
Here you can see the setup of the product group 'Deposit tax'
Accounts 8032 and 8033 are set up in the chart of accounts under status.
The example shows a batch of 10 sodas with a cost price of 8.00 and a selling price of 17.00. The deposit is set to 2.40
The cost of goods sold is 00.00; the sales are 170.00 and the tax is 24, i.e. the tax is 10*2.40, namely 24.00.
Note: VAT is deducted from the tax!
Invoice layout simulation
