Tax and Adjustment Examples

 

Examples of Tax and Adjustment Types

• Sales Tax, added to the purchase price - (Non Recoverable) - This type of tax is usually not applied to food items but paper, cleaning supplies and smallwares will have taxes applied and these will affect the actual cost of the item. Bleach for example costs $8.00 per case but there is $0.56 of tax applied so the actual cost of the bleach is $8.56.

• Value Added Taxes – (Recoverable) - These are, for the most part a recoverable tax. You may pay on your purchases but you also get credit on the tax. This will mean that even if the price is included in the price, the net cost without taxes is your real cost.

• Discounts – (Recoverable) - Some inventory items, when purchased, have a discount that is applied. In other words, you may pay $30.00 for an item and on the invoice this would be the line amount, but you receive a discount of $10.00 that is applied as a total discount at the bottom of the invoice. If you select that this tax (or tax group) is applied to the purchase price then the net adjusted case cost in the items window will be $25.00 reflecting the correct net cost for the item.

• Deposit – (Recoverable) - In many cases the cost of the deposit (beer or liquor for example) is included in the purchase price.  You may wish to create different types of deposits like keg deposit, large liquor bottle deposit or 24 bottle deposit etc.

 

Any of these taxes can be Grouped Together and applied to an item cost for net costing. In other words, you can see what an item is really costing you less the deposits and delivery charges or additional sales costs can be calculated automatically and added to the net cost of an item. For more information see Tax Groups