Tax

The selection made here will determine a default item Tax for applying to new Customers. Item tax will use the tax defined on the item, which can be set to use the "item group" tax.

Default labour tax code

Select the defaulted labour tax code, this can be overridden at customer level.

Select the defaulted contract tax code, this can be overridden at customer level.

Select the defaulted prepay tax code, this can be overridden at customer level.

When selected, Quote/Sales Order/Invoice lines provide a "Tax Code" field that can be used to edit the tax code for products added to these entities.

(Accounts Codes module must be enabled) Tax rates can be set per accounts code and will be disabled on the Item screen. This setting can be found in both Item settings and Billing Settings.

Decide how to calculate tax, either: "Calculate Tax per Item, round to 2dp and then sum" or "Calculate Tax from the total price, round to 2dp at the end". From v2.252+, the option to "Calculate Composite Tax using totals instead of lines" will be available here. 

Tax rules can be created, there is an option to set a tax code based on criteria. You can give a sequence to the rules as well. 

Currently, you can filter on: Top Level, Customer, Site, Product, Product group, Supplier, and whether it's a purchase entity (PO or Bill.).

Tax rules work on POs, SOs, Quotes and Invoices.

When enabled, the composite tax will be calculated separately for each rate and each line, adding the tax from each individual rate that contributes to the total composite tax rate.

When disabled, the total composite tax rate will be applied to each line as a single amount. For more accurate tax calculations we recommend having this setting turned on.

From v2.252+, this setting has been move to the "Method for calculating Tax" dropdown.