Erplain supports multiple sales taxes. Each tax can be added to your Sales and Purchases and you can select a default tax for each Customer, Supplier and Product.
Within all your Sales and Purchase documents (Sales orders, Invoices, Purchase orders), you will have 2 choices for the Tax type:
- Tax Exclusive: The sales tax is not included in the price of the product. The sales tax will be added on top of the price.
- Tax Inclusive: The sales tax is included in the price of the product. This setting is more typically used in Europe in B2C sales.
To manage and add Taxes, simply follow these steps:
- Go to the Menu 'Settings' > 'Taxes':
- This is your list of taxes:
You can Edit them by clicking on:
You can Disable them by clicking on:
- To create a Tax, click on the 'Create a Tax' button:
- Next: Type the Name, Abbreviation and Tax rate of the new tax:
If you want to group multiple taxes into one, simply check 'Group multiple taxes' and select the taxes included in this group.
Default Taxes
In most cases, default taxes are assigned to customers. You can also assign taxes to products, this can be necessary if the same tax rate doesn't apply to all the products in the same sale (Estimate, Sales order, Invoice). For example, in the same invoice, some products can be tax exempt, and others subject to a 20% tax rate. Setting up taxes in products is optional, but if you assign taxes to your products, this will be prioritized over your selection in the customer and company settings.
The priority order for taxes is the following:
1. Products
2. Customers
3. User settings
4. Company settings
Customers / Supplier: You can assign a default tax to each of your customers and suppliers. This tax will be added automatically in an invoice for example (or other transactions). Make sure to select the customer / supplier prior to selecting your products, it will add the tax automatically to your products.
To assign a tax to your customer or supplier simply Edit the customer / supplier and select the tax:
Products: Each product can also have its own tax settings. This tax will be selected as a priority regardless of the customer tax. For your kits, you can also use different default taxes on components.
Warning: Product taxes only apply to sales.
Changing default tax priorities: In the company settings, you can change the tax priorities between products and clients. If you choose "taxes selected in document", the priority order will be as follows:
1. Customers
2. Products
3. Users
4. Company settings