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Assigning Alternative Tax Rates for QuickBooks Enterprise

Last updated 08/09/2020

How to assign Alternative Tax Rates automatically or manually to transactions.

Overview


Once you have downloaded your Alternative Tax Rates from QuickBooks Enterprise, you will need to decide how to assign them.

The ultimate goal here is to set up a logical system, so that the line items you import into QuickBooks Enterprise are taxed at the correct tax rate.

You will find documented below each possible way of automating Alternative Tax Rate assignments. It is also possible to manually override Alternative Tax Rates, and we have documented this underneath.

Because it is only possible to assign one Alternative Tax Rate to a line item, Cin7 has a system of prioritisation, explained at the bottom of this page.

Downloading Alternative Tax Rates 


  1. On the right hand side of screen, hover over your username
  2. Click Settings
  3. Select Accounting
  4. Click Get Classes, Tax Rates and Accounts

You can view the Alternative Tax Rates in the general settings in Cin7. 

Automating Alternative Tax Rate Assignments


Customer

You can apply Alternative Tax Rate to individual customers.

  1. From the left navigation, select CRM
  2. Select the customer by clicking on the contact name
  3. Under the accounting section, choose the tax rate from the Tax Status dropdown

When adding a customer with an Alternative Tax Rate to a transaction, the specified tax rate will automatically apply to all the products in the transaction.

This means that unless otherwise specified, all products within this transaction will be taxed at the same tax rate.

Branch

You can apply Alternative Tax Rate so that sales from different branches are taxed with the same tax rate. This is particularly useful if you have multiple retail stores.

To apply an Alternative Tax Rate at a branch level:

  1. From the left navigation, click CRM
  2. Using the Contact Type dropdown, select Branches
  3. Select the branch by clicking on its name
  4. From the Tax Status dropdown, choose the Alternative Tax Rate

Each sale is taxed based on the Tax Status setting in the branch contact. This happens at time of import - so unlike customers above, it is not visible in the actual transactions within Cin7. Branch level Alternative Tax Rate are applied unless otherwise defined at the customer level. See priorities below.

Manually Assigning Alternative Tax Rates


You may choose to assign Alternative Tax Rate manually at the time of sale, either to override automatic assignments or just to apply the Alternative Tax Rate on a case by case basis.

There are two places you can do this:

Assigning at the Order level

To apply an Alternative Tax Rate to an entire order, click on the Alternative Tax Rate dropdown and choose from the list. This will apply one specific tax rate to all line items in the order.

Assigning to a line item

In a transaction, you can choose an Alternative Tax Rate for each line item by clicking into the Account column and then selecting from the dropdown list that appears.

Priority


When an Alternative Tax Rate is applied in multiple places, the Tax Rate that is ultimately applied is decided by the priority below (1 being the highest):

  1. Line item
  2. Transaction/customer
  3. Branch
  4. Default Account

Lets say you have assigned Branch X to the Tax Rate 'GST (15%)'. You also assigned Customer Y to Tax Rate 'GST Free 0%' prior to this. When you sell to Customer Y from Branch X Tax rate 'GST Free 0%' will be applied, because ultimately the customer has a higher priority.

FAQs

I can't see the entire Tax Rate name from the dropdown list?

This may happen if your Tax Rate name is too long; the best thing to do is use a naming scheme that allows you to easily see the right account from the first few characters e.g. "GST" "No GST".