Taxes & Other Charges (Master List)

There are a huge number of Taxes and Other Charges that various federal, state, provincial, county, and municipal governments require service businesses to collect and remit. And there are many ways those governments would like you to calculate those charges. The software has a Taxes and Other Charge authoring tool. The software's invoicing system automatically calculates these Taxes and Other Charges during invoice generation, then handles your remittances.

Taxes and Other Charges are an integral part of the software's General Ledger, as are all the software's financial transactions.

You may also define and automatically pass on to your customers the cost of shop supplies used to repair vehicles, based on any criteria you choose.

You use the Other Charges (Master List) dialog to define all these other charges that are added to invoices, such as sales or other taxes, environmental disposal fees, flat rate charges for shop supplies, etc. Each other charge is labeled with a letter (* is reserved for shop supplies) and each invoice detail line item will show what other charge is being applied. All other charges are sub-totalled using this letter at the bottom of the invoice.

Once defined for the business Enterprise, the list of charges that apply at each business Location can be specified using the Other Charges - Location dialog. So each business Location will activate a subset of the Master Other Charges list.

Toolbar Buttons

Other Charge Option Tabs

Box - The box contains the letter (short symbol) you wish to use for the other charge.
Alternate - Beside the box containing the letter short form is a field where you would enter number (1-9) to configure an alternate calculation for the same other charge. * See example at the bottom of this topic.
Full Description - The full name or description of the other charge.
Percent of Marked Item - Charges a set percentage to any item that is chosen (marked) to have this other charge applied.
Fixed Amount per Marked Item - Charges a set amount to any item that is chosen (marked) to have this other charge applied.
Fixed Amount per Invoice - Charges a set amount to each invoice.
Percent of Labor Items - Charges a set percentage of the invoice's total labor.
Percent of Total Invoice - Charges a set percentage of the invoice's total.
Tip: If you will have instances where items will need to be exempt from this other charge, percentage of total invoice will not provide that ability. We recommends using marked item methods for this circumstance.

Minimum Amount per Item - Charges a minimum dollar amount per item when that item is marked.
Maximum Amount per Item - The maximum amount to be charged per item when that item is marked.
Minimum Amount per Invoice - The minimum amount to be charged on all invoices.
Maximum Amount per Invoice - The maximum amount to be charged on the entire invoice.
Only Apply to Invoices $> - Specifies the total of the invoice required before the charge is to be applied.
Calculate on Pre-Tax Amount + - Allows you to specify if the charge is to be applied after an other charge has been applied. (Tax on Tax)

Report As Taxes Owing (Liability) - Specifies that the other charge is to be setup in the general ledger as a liability account.
Report As Other Charges Sale (Revenue) - Specifies that the other charge is to be setup in the general ledger as a revenue account.

By Default, Apply to All Parts Sold - The charge will be applied to all material items sold.
By Default, Apply to All Labor Sold - The charge will be applied to all labor sold.
By Default, Apply to All Invoices Generated - Each invoice will receive this charge by default.
Apply to All Returned Cores - Some states and provinces retain the taxes sold on cores. Checking this box will provide a method to adhere to this scenario.
Tax Like Labor - The charge is itself subject to tax and will be taxed like labor.
Tax Like Materials - The charge is itself subject to tax and will be taxed like materials.
Tax Like [User Defined] - Enter the tax codes to be applied if different than labor or materials.

CAUTION: When the Other Charge is taxable be very careful on choosing the correct setting. If you choose tax like labor or materials and the other charge is set to charge to all parts or labor by default, the other charge has the potential to be charged on itself. To avoid this scenario, use the Tax Like [user defined] option and explicitly specify which tax codes to charge on the other charge.

There are cases where there may be different rates of the same other charge for special cases. For these cases you can either build an entirely separate other charge but this will force you to set exemptions on each and every contact you create. You can also setup alternate calculations for the same other charge. Here is how it works: