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Alternative GL Accounts and Tax Rates

Last updated 01/02/2021

How to address special requirements for Tax Rates received or the General Ledger Accounts to which sales are recorded.

Alternative General Ledger Accounts


Alternative General Ledger Accounts direct sales to different accounts in your accounting software. When applied to a customer in the CRM, the Alternative General Ledger Account automatically appears in the Sales Order when that customer is chosen.

This is a great feature if you always record sales to a specific customer to a specific account, and need to automate this process.

This article assumes that you have already set up your accounting software, and that you have created Alternative GL Accounts. If not, see the Setting up Alternative General Ledger Account Help article for additional information.

To Apply an Alternative GL Account to a customer:

    1. In the CRM module, select the customer name in the Company column that you would like to update.
    2. In the Accounts section, choose the correct account from the Alternative GL Account drop-down.
    3. Select Save.
In a new Sales Order, the Alternative GL Account is applied to the whole order when the customer is selected.

Alternative Tax Rates


Alternative Tax Rates alter the Tax Rate applied to your Sales. These can be applied to customers so that the correct Tax Rate is applied automatically in a Sales Order.

There are several reasons a customer may be assigned an Alternative Tax Rate:

  • They are not charged GST or VAT (e.g., they are a charity).
  • You do not charge Tax by default and would like to include Tax for certain customers (e.g., U.S. State-based Tax rates).

Alternative tax rates must be set up correctly before they can be applied to customers. See the Setting up an Alternative Tax Rates Help article for additional information.

To apply an Alternative Tax Rate to a customer:

    1. In the CRM module, select the customer name in the Company column that you would like to update.
    2. In the Accounts section, choose the correct account from the Tax Status drop-down.
    3. Select Save.
In a new Sales Order, the Alternative Tax Rate is applied to the whole order when the customer is selected.

FAQs

If I apply an Alternative GL Account to a customer, but also apply a GL Account to a product, which GL Account ultimately takes precedence?

The priority order, with 1 being the highest priority, is as follows:

  1. Line Item
  2. Order
  3. Branch
  4. Default Accounts as per the QBO/Xero settings
Do Customer-assigned Alternative GL Accounts apply when using the POS?

No, and for a very specific reason. When you close a register, batches are created which consolidate all transactions. This means that individual POS sales don't get posted to your accounting software at all.

Do Customer-assigned Alternative Tax Rates apply when using the POS?

No. However, it is possible to change the Tax Rate in the POS. See the Using Multiple Tax Rates in the POS Help article for additional information.