Last updated 18/01/2021
U.S. Sales tax can be complicated, especially when you have to handle multiple states, counties, and cities. To make things easy, Cin7 has a special feature that allows you to preserve the fidelity of tax calculated on orders imported from integrated channels.
In order for this to work, you must meet the following prerequisites:
It is also likely that you will use a separate tax filing/reporting automation software to ultimately figure out what you owe and to whom.
To set this up:
When an order is downloaded, the tax will be correctly preserved based on the ecommerce or marketplace's calculation. The appropriate tax will appear in the Alternative Tax Rate field in the Sales Order. The tax amount will be considered when calculating the total of the order.
Upon importing the order to Xero, the tax will be split and posted to the specified liability account.
Modifying Tax Rates
Please note that if you modify a tax rate in the Alternative Tax Rate field at any stage and save the transaction, you will not be able to recreate the unique tax rate. Please modify this field with care!
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