Sales Tax V1

Overview

The GoldFinch Sales Tax module can be used to calculate Sales Tax on sales orders and sales invoices.

Default “NoTax” Setups

Most companies do not charge Sales Tax. GoldFinch Sales Tax module is pre-configured to have a 0% sale tax rate using a "NoTax" Tax Area and a "NoTax" Tax Group.

1. If you are a B2B wholesaler, assign "NoTax" as Tax Area for all customers and alternating shipping addresses, and "NoTax" as Tax Group for all items.

2. If you use a B2C E-Commerce platform, assign "NoTax" as Tax Area for all customers and alternating shipping addresses, and "NoTax" as Tax Group for all items. 
   Set up sales tax in the e-Commerce platform, and then configure the E-Commerce integration module to download the sales tax as a separate line item.

Taxable Setups

If you would like to calculate sales tax in GoldFinch, follow the following steps.

Tax Areas

Open the App Launcher. Search for Tax Areas.

Click on the New button to create new tax areas. Tax Areas are codes used to group multiple Tax Jurisdictions to define the combined tax rate. It is linked to a customer account or alternate shipping address.

Tax Jurisdictions

Click on the Tax Area you want to add a new Tax Jurisdiction to.

In the Tax Jurisdiction section, click on the New button to create tax jurisdictions associated with a Tax Area.

One Tax Area could have multiple Tax Jurisdictions.

For example:

NJ charges 7% sales tax. To set up Sales Tax for companies in NJ, you want to set up a Tax Area named “NJ”, and under NJ, set up a Tax Jurisdiction named “NJ.”

New York City charges 8.875% in Sales Tax. There are three different tax jurisdictions in NYC:

• New York State (NYS) charges 4%

• New York City (NYC) charges 4.5%

• Metropolitan Commuter Transportation District (MCTD) has a surcharge of 0.375%.

To set up sales tax for companies in NYC, you want to set up a Tax Area named “NYC, NY”, and under NYC, you could set up one Tax Jurisdiction named “NYC” with a combined tax rate of 8.875%, or you could set up 3 Tax Jurisdictions named “NYS”, “NYC”, and “MCTD” with their respective rates.

Tax Details

Click on the Tax Jurisdiction page. On the Tax Detail section, click on the New button to configure tax rates associated with a Tax Jurisdiction.

Choose a Tax Group. Tax Group can be Material, Labor, Freight, or No Tax. In some Tax Jurisdictions, the sales tax rates for Material, Labor, and Freight could be different.

Enter a Tax %.

Click Save.

Assigning Tax Area

You can assign Tax Area to Accounts or to Alternate Shippings within the Accounts.  

Click on the App Launcher. Search for Accounts.

Click on the Account you want to assign a Tax Area to.

In the GoldFinch ERP section, you may assign the Tax Area. If the Account is taxable, check the field Tax Liable.

In the Alternate Shippings section, click on the New button to add an Alternate Shipping address. You may also click the Edit if the Alternate Shipping already exists.

Specify the Tax Area you want to assign. If Alternate Shipping is taxable, check the field Tax Liable.

Assigning Tax Group

You can assign Tax Group(Material, Labor, Freight, or No Tax) to an item.

Click on the App Launcher. Search for Items.

Click on the item you want to assign a Tax Group.

Calculating Sales Tax on a Sales Order

1. Tax Area and Tax Liable for the Sell-to Customer Account are copied to the Sales Order.

2. If Alternate Shipping is not blank, Tax Area and Tax Liable for the Alternate Shipping will be used instead. The Tax Rate for the actual shipping address overrides the Tax Rate of the Sell-to Customer’s address.

3. Tax Group for Items is copied to the Sales Line.

4. GoldFinch will calculate the Sales Tax upon saving the Sales Order based on Tax Area, Tax Group, and Tax Liable flag.