Tax management in Alice.
With the latest build of Alice POS, we have made some changes to how taxes work in order to make them as flexible as possible:
Tax options
- Default item: This tax will be used by default for all transactions.
- Mandatory: This will make the selected tax mandatory whether it is assigned to an item or entity in the current invoice.
- Overrides default: This means the selected tax will override the default tax.
- Apply on Supplier Invoice: Selected tax will be applied to supplier orders and purchases.
- Apply on Membership sale: The selected tax will be applied when selling membership activations
- Nothing checked: The regular taxes will be applied to all transactions.
How the options work
Taxes are now based entirely on tax groups. Every item and entity is assigned a built-in default tax group that uses the default taxes. Alternatively, you can also use the built-in Without tax option if the item or entity isn’t taxed. Taxes are calculated as long as both the entity and the item have that same tax. A tax that is only applicable to an entity or an item will not be displayed. This rule is overridden by the Mandatory option explained above.
If a Mandatory tax is only applied to an item, it will be calculated on the invoice. Override default option will replace the default taxes if they are all accounted for. If not all default taxes are present, then the remaining default taxes will be calculated even if only assigned to the entity or item tax group and the override tax will not be calculated.
In this case, the tax with the Override default option enabled will not be calculated. Taxes applied to an entity will be displayed on the invoice even if not calculated, whereas the items’ taxes will not display at all when ignored. Taxes applied to supplier-related invoices use a different tax system. Supplier transactions (orders and purchases) disregard tax status (default, mandatory, and overrides) and will only be calculated if the entity and the item have the same tax assigned and it's a Supplier tax. Membership taxes will also disregard status and are only calculated if the entity has the tax and it's a Membership tax.
Examples
| Applied taxes | Item 1 (Default 1, Default 2) | Item 2 (Default 1, Mandatory 1) | Item 3 (Override taxes Regular 1) | Item 4 (Override taxes Mandatory 2) | Item 5 (Default 2, Default 2) |
|---|---|---|---|---|---|
| Client 1 (Default 1, Default 2) | Default 1, Default 2 | Default 1, Mandatory 1 | Override | Override, Mandatory 2 | Default 2 |
| Client 2 (Default 1, Mandatory 1) | Default 1, Mandatory 1 | Default 1, Mandatory 1 | Default 1 | Default 1, Mandatory 1, Mandatory 2 | Mandatory 1 |
| Client 3 (Override, Regular 1) | Override | Default 1, Mandatory 1 | Regular 1 | Mandatory 2 | Default 2 |
| Client 4 (Override, Mandatory 2) | Override, Mandatory 2 | Mandatory 1, Mandatory 2 | Mandatory 2 | Mandatory 2 | Default 2, Mandatory 2 |
| Client 5 (Default 2, Regular 2) | Default 2 | Mandatory 1 | Default 2 | Default 2, Mandatory 2 | Default 2, Regular 2 |