Use Multi-Rate Tax if any of the following are true:
1.You use a Central Acme and have stores in more than one tax location.
2.You deliver goods into more than tax location.
3.You have certain items at different tax rates than others, for example candy and liquor.
We are going to run some examples to illustrate how Multi-Rate tax works.
For this tutorial we are going to set up some taxes for Minnesota. Note that these percentages are only examples!
Make a list of the taxes we need to collect, and who we collect them for…
6.5% general sales tax for State of Minnesota.
0.5% additional general tax for City of Rochester with. (6.5 + .05)
9% ICE Melt tax (Minnesotan's love ice so they tax anything that melts it.)
Delete any existing sales tax setup records. To do this, Click Maintenance > Sale Tax Setup and use the Delete button. Repeat the process on all three tax setup tabs, Tax Rate, Tax Class and Tax Locale.
If it is not already, set Sales Tax Type to Multiple Location / Multiple Rate. This is done on the Tax Rate tab:
Enter in needed Tax Rate Codes, similar to shown above.
Tax Rates identify the PERCENTAGE and WHO the tax is being collected for, not who it is being collected from.
Set up second Tax Rate record:
Tax Rate Code = ROCH-GEN
State = MN
Description = Rochester General
Tax Rate % = .5 (it gets added to the 6.5 later)
Set up the third Tax Rate record:
Tax Rate Code = MN-ICEMELT
State = MN
Description = Minnesota Ice Melt
Tax Rate % = 9
Add in two Tax Class records, the first of which would look like this:
Tax Classes identify the ITEMS or SERVICES that get taxed. Classes are assigned to items and services in Inventory Maintenance.
Setup a second Tax Class Code:
Tax Class Code = ICE
Description = Ice Melt
Short Desc = Ice Melt
Add in your Tax Locale (location) Codes. Since we have two locations that come into play, Minnesota and Rochester we need two Tax Location Codes.
Tax Locales identify the location the tax is collected for. Locales are assigned to customers addresses in Customer Maintenance.
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On the Tax Locale tab, click the [New] button and type in your Tax Location Code (MN) and a description (Minnesota). Then use the drop down lists to choose Tax Class code "General".
Click Edit and select "MN-GEN" Tax Rate. Your form should look like the one shown below. Click Save.
Click Edit and change the Tax Class Code "ICE".
Click Edit again and choose Tax Rate Code "MN-ICEMELT".
Click Save and your form should look like this:
At this point we have the tax tables set up to tax people in Minnesota 6% when they buy General Merchandise and 9% when they buy Ice Melt.
Next we will set up some additional taxes for residents of Rochester Minnesota.
Click the New button and type in your Tax Location Code (ROCH) and a description. Then use the drop down lists to choose "GEN" Tax Class Code. Click Save.
Click Edit again, and select "MN" Tax Rate #1 Code.
For Tax Rate #2 pick "ROCH-GEN"
Click Save and your form should look like below.
Note how the total tax 7.00 displayed above is the sum of 6.5 and 0.5. All general merchandise purchased in Rochester Minnesota is taxed at 7%.
Click Edit and choose Tax Class Code "ICE".
Click Edit and choose Tax Rate Code "MN-ICEMELT".
(there is no Rochester add-on for Ice Melt, but if there was you could add it.)
Your form should look like this:
Sales Tax Cap -Acme has ability to cap sales tax at the Tax Local or Tax Class. The amount entered is the maximum dollar amount that will be collected per transaction. See Sales Tax
Setup customers: One with Tax Location Code MN because he that lives in Minnesota, but not the city of Rochester. And a second customer with code ROCH because he lives in the city of Rochester.
In POS Terminal Setup Customers tab, set Walk-in Tax Location so it matches the store's location.
Setup Items: -Perhaps item "Ice Melt 5# bag" a Tax Class Code of ICE. And one general rate item with a Tax Class Code of GEN.
Run a few sample tickets:
Rochester customer buys general merchandise.
Rochester customer buys Ice melt.
Minnesota customer buys general merchandise.
Minnesota customer buys Ice Melt.
Rochester customer buys general merchandise AND Ice Melt.
Now Ticket Entry can match up the item, customer and Tax Locale and use the correct Tax Percentage. Note you must mark the transaction as delivery and choose an address associated with different locale, otherwise the stores locale will be used.
Check out the tax calculations during Ticket Entry, and how they are printed on the receipts.
Run the Sales Tax Report.
