Invoice Excise Tax Rules

Invoice Excise Tax Rules

Overview

Depending on the federal and state rules, a retailer may need to pay an excise tax when buying some products. Generally, retailers may need to pay the applicable excise tax when they buy goods directly from a manufacturer instead of vendors. 

In FTx Cloud POS, there are various methods to handle the tax. 


  1. The product price includes the tax(es) when the retailer charges the tax(es) to the customer. These taxes are handled using the POS flag. To learn about taxes using the POS flag, please refer to:
    1. POS Flags  
    2. Tax Groups
    3. Tax Rates
  2. The excise tax is added to the invoice when the retailer needs to pay the tax. The rules for this excise tax are defined using "Invoice Excise Tax Rules."

"Invoice Excise Tax Rules" enables you to:
  1. Add the invoice excise tax rules as per your requirements.
  2. Define department-wise tax rules and apply them to the desired locations. 
  3. Edit or delete the invoice excise tax rules. 

Reaching "Invoice Excise Tax Rules"

  1. Step 1: Log into Control Center
  2. Step 2: Choose Point of Sale
  3. Step 3: Choose Inventory
  4. Step 4: Choose Receiving
  5. Step 5: Choose Invoice Excise Tax Rules

Understanding "Invoice Excise Tax Rules" Layout

  1. Please refer to Figure 0.0 and the descriptions of the buttons and fields below to understand the layout of "Invoice Excise Tax Rules." 

                                                                   Figure 0.0

Column Titles: Each column title indicates the type of information in the column. You can filter the list using any title to search for any specific excise tax rule.

1: Add New: This button lets you add a new invoice excise tax rule.

2.1: Edit: This button lets you edit an invoice excise tax rule. 

2.2: Delete: This button lets you delete an invoice excise tax rule.

1. Adding an Invoice Excise Tax Rule

When you add a new excise tax rule, the system automatically adds the defined tax to the specified department products for the selected vendor for the selected locations.

Please follow the steps below to add a new invoice excise tax rule:
  1. Click "Add New," shown in the top right corner.
  2. The Create Invoice Excise Tax Rule screen will appear, as shown in Figure 1.0 below.
                                                                        Figure 1.0
  1. The Create Invoice Excise Tax Rule screen can be segregated into four sections: 
    1. Vendor Information
    2. Manage Assignments
    3. Manage Departments
    4. Action Buttons 

    1. Vendor Information
    1. Name: Enter a friendly name for the tax rule.
    2. Vendor: Select the vendor. 
    2. Manage Assignments
    1. In this section, you select the location(s) or location group(s) to which you want to add the invoice excise tax rule. The system will select all locations by default. Please follow the steps below to change it. 
    1. Click the "Select Locations" drop-down and select "By Locations" or "By Location Groups" as per your requirements. The "Manage" button will appear, as Figure 1.0 shows. 

                                                           Figure 1.1
    1. Since "By Locations" is selected, the Manage Locations screen will appear, as Figure 1.2 shows. 

                                                              Figure 1.2

    1: Use this Search box to search a specific location.  
    2: Use this drop-down to view the locations that have a specific pricebook zone.
    3: Use this drop-down to view the locations based on three parameters: All Locations, Only Active, and Only Deleted. 
    4: The Results section shows the list of locations. By default, it shows all locations. If you have made specific selections in 1, 2, or 3, it will show the location list accordingly.
    5: Select the locations for which you need to add the excise tax rule. 
    6: Click the green Arrow button to move the selected locations to Selected List. 
    1. The Manage Locations screen will look like the one shown in Figure 1.3.

                                                                     Figure 1.3
    1: If you want to remove the whole selection, click the "Clear Selection" button. You can remove any record from the list by clicking the Remove (x) icon. 
    2: Click "Apply" to apply the selection. 
    1. The system will only apply the new excise tax rule to the selected locations. The Manage Assignment section will look like Figure 1.4. 

                                                                        Figure 1.4
    1. You can follow the same process to select the location group(s). 
    3. Manage Departments
    1. In this section, you select the departments for which you want to add the excise tax rule and define the invoice excise tax rule for each department. Please follow the steps below to complete this process: 
    1. Click the "Manage" button shown in the Manage Departments section, as Figure 1.5 shows.

                                                                          Figure 1.5
    1. The Manage Filters screen will appear, as Figure 1.6 shows. 

                                                              Figure 1.6

    1: Use this Search box to search a specific department.  
    2: Select the departments for which you need to add the excise tax rule. 
    3: Click the green Arrow button to move the selected locations to Selected List. Define the invoice excise tax rules for the selected departments using the three parameters: Tax Type, Tax Value, and Cap Or Additional Fee.
    1. Define the invoice excise tax rules for the selected departments using the three parameters: Tax Type, Tax Value, and Cap Or Additional Fee.

                                                                           Figure 1.7
    1: Tax Type: Select the tax type: Percentage, Flat, Percentage With Cap, or Percentage With Additional Fee.
    2: Tax Value: Enter the tax value.
    1. Tax Type and Tax Value go hand in hand. For example: 
    1. If you select "Percentage" as the tax type and enter five as the tax value, the system will add a 5% excise tax to the invoice of products from this department. 
    2. If you select "Flat" as the tax type and enter five as the tax value, the system will add a $5 excise tax to the invoice of products from this department. 
    3: Cap or Additional Fee: Enter the cap or additional fee, if required. To enable this field, you must select "Percentage With Cap" or "Percentage With Additional Fee" as the tax type.
    1. If you select "Percentage With Cap" and enter five in this field, the system will add the cap of 5% to your entered tax value.
    2. If you select "Percentage With Additional Fee" and enter five in this field, the system will add a $5 fee to your entered tax value.
    3. Once you define the tax rules, the Manage Filters screen will look like the one shown in Figure 1.8.

                                                                                  Figure 1.8
    1: If you want to remove the whole selection, click the "Clear Selection" button. You can remove any record from the list by clicking the Remove (x) icon.
    2: Click "Apply" to apply the selection. 

    1. The system will only apply the new excise tax rule to the selected departments.
    2. The Manage Departments section will look like Figure 1.9. 

                                                           Figure 1.9
    4. Action Buttons 
    1. Cancel: This button lets you cancel the adjustment or the changes made in the adjustment.
    2. Save & Close: If you click the "Save & Close" button, the system will save the excise tax rule and navigate you to the Invoice Excise Tax Rule screen. 
    3. Save & New: If you click the "Save & New" button, the system will save the excise tax rule and open the new Create Invoice Excise Tax Rule screen, where you can add another excise tax rule. 
    4. Save: This button lets you save the changes you have made at any point. 

    2. Editing an Invoice Excise Tax Rule 

    Please follow the steps below to edit an invoice excise tax rule.
    1. Click the Edit (Modify) icon under Actions shown in Figure 0.1.
    2. The Edit Invoice Excise Tax Rule screen will appear as shown in Figure 2.0.

                                                                             Figure 2.0
    1. You can perform actions such as: 
    1. Changing the excise tax rule name. 
    2. Changing the vendor name.
    3. Adding or removing Location(s) or Location Group(s.) 
    4. Adding or removing departments.
    5. Changing the tax rules. Please follow the steps below if you need to change the tax rule.
      1. Click the "Manage" button in the Manage Departments section, as Figure 1.9 shows. 
      2. The Manage Filters screen will appear, as Figure 1.8 shows. Make the required changes and click the "Apply" button. 
    1. Make the necessary changes and click "Save."

    3. Deleting an Invoice Excise Tax Rule

    You can delete the invoice excise tax rule from the Invoice Excise Tax Rules home screen and the Edit Invoice Excise Tax Rule screen. 
    Please follow the steps below to delete an adjustment record from the Invoice Excise Tax Rules home screen: 
    1. Click the “Delete” button shown in Figure 3.0.

                                                                 Figure 3.0
    1. A warning dialog will appear with two related options, as shown in Figure 3.1.
            
                                                 Figure 3.1
    1. Click "Yes, Delete" to continue deleting the invoice excise tax rule. 
    2. Click “Cancel” to close the pop-up and skip the deletion process.

    To delete the adjustment record from the Edit Invoice Excise Tax Rule screen:
    1. Click the Edit icon highlighted in Figure 0.0.
    2. The Edit Invoice Excise Tax Rule screen will appear, as Figure 2.0 shows.
    3. Click the "Delete" button. The warning dialog will appear, as Figure 3.1 shows. 
    4. Click “Yes, Delete” to continue deleting the invoice excise tax rule.
    5. Click “Cancel” to close the pop-up and skip the deletion process.

    4. Applying the Invoice Excise Tax Rule to the Last Cost 

    When you add an invoice excise tax rule, it's recommended to ensure that the excise tax is added to the product's last cost.  


    What is the product's last cost?


    The term last cost denotes the cost at which a retailer purchased the product last time. Generally, the product cost in "Products" is its last cost. It helps make various business decisions, including deciding the product price, the profit margin, and evaluating the available vendor or manufacturer options. 


    FTx Cloud POS offers flexibility to decide whether you want to automatically add the applicable excise tax, misc. fee, and surcharge to the product's last cost. You can do it from the Inventory section of the Settings screen. Please follow the steps below to enable this feature: 
    1. Follow the path "Point of Sale" >> "Maintenance" >> "Settings & Panels" >> "POS" >> "Inventory" and locate "Inventory Settings."
    1. Figure 4.0 below shows the steps that can help you locate Inventory Settings.


                                                                                    Figure 4.0
    1. Scroll down to Advanced Receiving Configuration. As Figure 4.1 shows, you will see the "Auto Apply Excise Tax to Cost Changes" toggle button. Ensure that the button is enabled. 

                                                              Figure 4.1
    1. Similarly, you can ensure that the respective toggle buttons to apply Misc Fee and Surcharge are also enabled. 

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