Tax Group Examples

 

Tax Group Examples

 

Example of Beer Purchase with Sales Tax and Deposit

• Beer has GST and a Bottle Deposit applied to the purchase price on the invoice. On the invoice the amount for the beer is $34.40 but this amount includes a Bottle Deposit of $2.40 and GST of $1.00, the Adjusted case cost is $31.00.
  Creating a Tax Group that contains the GST and Bottle Deposit and applying to the item will allow you to know exactly what you Net cost is for that item.

 To Customers in British Columbia, Canada. You will need to create a Tax and Adjustment called Licensee Factor. Then create a Tax Group that includes the Licensee Factor tax and GST. Apply this tax group to your liquor items. This way when purchases are made, you can purchase at Gross amount including tax and discount and then Optimum Control will net out the cost in the invoice window when entering the invoice.

 

Example of Liquor Purchase with Tax, Deposit and Licensee Factor

• In Vancouver Canada, the price for a bottle of Rum is $38.90.  This price includes a licensee factor of 10%, GST TAX and a bottle deposit of $.20. 
  To find out the Net cost of the Rum:
  1. In Taxes and Adjustments, create a GST tax, Licensee Factor of 10% (that is recoverable) and a bottle deposit. 
  2. Create a Tax Group called LZ (any two digit combination is fine). Select GST, Licensee factor and bottle deposit. 
  3. In the Item window, locate the Rum and check Price Incl. Tax Grp. and select the tax group LZ from the Tax Grp. drop down box. 
  4. The Adjusted case cost in the items window will reflect the net cost (adjusted case cost) of $33.65.

 

Example of Sales Tax Added to Products

• Many cleaning products when purchased include sales tax.
  To find out the Net cost:
  1. In Taxes and Adjustments, create a Sales tax (Non Recoverable).
  2. Create a Tax Group called PT (two digit combination). Check Sales tax for the group.
  3. In the Item window, locate the cleaning product and check Price Incl. Tax Grp. and select the tax group PT from the Tax Grp. drop down box. 
  4. The Adjusted case cost in the items window will reflect the net cost (adjusted case cost).