How to create and edit tax codes and rates | ParagonERP

How to create and edit tax codes and rates

In order to set up taxes in Paragon, the tax code and rates must be entered. The following document explains how to perform these two steps.

Step 1: Go to attribute setup

Tax is set up as an attribute in Paragon. So, to add tax codes you need to go to attribute setup.

Hit the settings button located in the top-right corner of your page to access the settings menu.




Click on attributes setup, which is found under the attributes card.


Step 2: Add attribute values to the tax attribute

This step consists of adding tax codes (VAT, HST, GST, etc.) in Paragon. These are going to be attribute values of the tax attribute.

In the list, find tax attribute and hit the edit button.


The tax attribute window will open. Click the next button.


The attribute type window will appear. The default for tax is set on list to choose from, so hit the next button again.


This is where you enter the tax codes you want to have in your system. To add a new tax code, hit the add new attribute value button.

Once you're done, click the next button located at the bottom right corner of your page and follow the prompts to save and continue.


Step 3: Enter tax rates

Now that the tax codes have been created in the system, it is time to enter the different tax rates that will be used.

Click on the settings button located in the top-right corner of your page to access the settings menu


Click on Tax setup.


On the right-hand side, click edit button.



Click the add a new tax code button on the grid to add a new rate and select the tax code from the drop down list.


rate -  Enter the tax percentage.

compound - Indicate whether the tax calculation can be accumulated with another tax rate.

type - Select the type of tax that is being used.

  • If you're entering taxes that are being applied to customers when creating transactions and are based on their location, select location.
  • In some provinces in Canada children's clothing has a special tax. In this case, the tax being charged on children's clothing would be an item tax.
  • If your customer is part of a particular tax program, for example they're a federal agency, they may have a special tax rate. In that case select company.

calculation order - If the tax is accumulated enter the order in which it will be calculated.

start date  - Indicate when the rate becomes effective. Any transaction after this date will be using this rate.

end date - Indicate when the rate is no longer effective. Any transaction after this date will not be using this rate.  This field is mandatory.

country - Indicate the "ship to" country that will use this rate. You must enter the Google long description, e.g. United States instead of USA.

state/province - Indicate the "ship to" state or province that will use this rate. This field is not mandatory.

city - Indicate the "ship to" city that will use this rate. This field is not mandatory.


Once you're done, click the save button located at the bottom right corner of your page.


Example

Once you set up your taxes, when you go to create a transaction such as an order or invoice, the rate will automatically populate. The system will know which rate to pick up based on the country, state and city that is entered on the ship to of that transaction.

See below for an example. The products on the invoice are shipped to Quebec so a 5% GST and 9.975% QST is applied.



Recalculating taxes after they have been edited

Based on your transaction configuration, you also have the ability to override the system tax calculation, which uses the tax setup and ship to address to automatically calculate taxes.

Manually edited taxes on a transaction are indicated by a blue asterisks.

This can be seen at the bottom of a transaction:



To revert back to the original taxes, hit the question mark bubble next to 'Tax'.



This screen will appear, where you will have the option to add, remove and edit taxes, as well as the option of recalculating taxes.

To cancel and exit the screen, hit the red close button.



To save your changes and apply the changes made to your taxes, hit the green accept button.


 


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