3.2 How to configure Sales Tax

1. Click on Accounting
2. Click on Configuration
3. Click on Settings
4. By default, Fiscal country is set the same as Company's Fiscal Localization.
5. Default Taxes accounts are automatically created based on your localization.
6. Select applicable Tax as default
7. Select relevant rounding method
8. Click on Configuration
9. Click on Taxes
10. List of all available taxes, Active & inactive.
11. Select Tax to ammend
12. Fill in desired Tax Name
13. Select Tax Type.
There are 3 types: Sales, Purchase & None
14. Select Tax Scope
Select relevant scope of the tax. There are 3 types: Services, Goods & blanks for both
15. Fill in tax percentage
16. Select Percentage from Tax Computation
17. Details for DISTRIBUTION FOR INVOICES
Here you can set distribution of taxes to separate/multiple accounts if applicable.
18. Details of DISTRIBUTION FOR REFUNDS
Here you can set distribution of taxes when refunding to separate/multiple accounts if applicable.
19. Click on Advanced Options
20. Label on Invoices is will be displayed in the invoice line
21. To set a description of the taxes if applicable
22. The placement in this list is the order in which the tax will be displayed on your invoices
By dragging the selected tax from up or down.
23. Activating or Deactivating taxes

Applying tax rates to the products

24. Click on Customers
25. Click on Products
26. Select relevant product. For example, Bagel
27. Sales Taxes can be set for each product
28. Purchase Taxes can be set for each product
29. Click on 10%P
30. Click on Save manually

Example of taxes in the invoice

31. Click on Customers
32. Click on Invoices
33. Click on New
34. Click on Bagel
35. Taxes applicable per line
36. Total Taxes applied on this invoice
37. Click on Journal Items
38. Entry for Tax is automatically created with the invoice