Invoice Excise Tax Rules

Invoice Excise Tax Rules

Invoice Excise Tax Overview

Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol that primarily businesses pay. This module explains how the excise tax is applied to items in the POS system.

Before understanding Invoice Excise Tax Rules, you need to understand how excise tax is configured in the POS system.
Understanding Excise Taxes:
In the POS system, there are two forms of excise taxes:

1. The one paid by the customer on a transactional basis (POS Flag).

Accessing the POS Flags Page: You need to configure the excise tax under the POS Flag.

To reach the POS Flags module:

  1. Step 1: Log into Control Center
  2. Step 2: Choose Point of Sale
  3. Step 3: Choose Maintenance
  4. Step 4: Choose Taxes
  5. Step 5: Choose POS Flags
  6. Step 6: Choose Edit POS Flags
                                                                                       Figure A

(See Figure A) In the tax form, there's a field for "Excise Tax" set up to apply the excise tax to the cost or the price.

As the item is rung up on the POS, whatever percentage is set for the excise tax, that amount is added to the transaction, and the customer pays the excise tax. You can apply tax types as a percentage or as a flat dollar amount.


 2.  The other one is when the retailer pays these excise taxes at the time of purchase from the vendor.

This situation occurs in the tobacco industry, especially for cigars, and generally, these taxes are paid by the vendor, but since the vendor is being skipped here, the retailer must pay taxes.

There are different excise tax rates applicable in different regions, states, or locations. You can configure the excise tax calculation (rule) by selecting the department(s) for the vendors. Let's understand how to configure the Invoice Excise Tax Rules.

Invoice Excise Tax Rules Overview

Invoice Excise Tax would be the area where the retailer pays the excise tax on items from a manufacturer rather than a vendor. So, if you add an item from the selected department on that invoice, 10% (for example) of that item’s cost will be added as an excise tax.                                                                      
Figure B below highlights the Invoice Excise Tax Rule main page. All the created invoices will appear here, with the ability to edit and remove entries accordingly.

Reaching the Invoice Excise Tax Rules Module

To reach the Invoice Excise Tax Rule module:

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

Understanding the Invoice Excise Tax Rules Module Layout

Please see the image below labeled Figure B for a description of the buttons and fields that appear on the screen.


                                                                          Figure B

Adding New Invoice Excise Tax Rule

Follow the steps mentioned below to add a new invoice excise tax rule:
  1. Click the “Add New” button highlighted in Figure A above to add a new invoice excise tax rule.
  2. The form highlighted in Figure C will appear on your screen.

                                                                                   Figure C
This part of the document describes the fields and buttons provided on the form highlighted in Figure C.
Fields:
  1. Name: This part of the document describes the fields and buttons provided on the form highlighted in Figure C.
  2. Vendor: This part of the document describes the fields and buttons provided on the form highlighted in Figure C.
  3. Select Locations: This part of the document describes the fields and buttons provided on the form highlighted in Figure C.
  4. Manage Departments: This part of the document describes the fields and buttons provided on the form highlighted in Figure C.
Buttons:
  1. Save & Close: Click on this button to “Save” the changes and exit the Invoice Excise Tax Rules form. 
  2. Save & New: Click on this button to “Save” and open a new Invoice Excise Tax Rules form.
  3. Save: Click on “Save” if you wish to stay on the same Invoice Excise Tax Rules form.
  4. Cancel: Click on “Cancel” to discard changes. 
  5. Manage: This button helps you manage the departments of the items/products that would be on the invoice with tax rules. See (Figure D).

                                                                               Figure D

Editing Invoice Excise Tax Rule

Follow the steps mentioned below to edit the invoice excise tax rule:

  1. Click the “Edit” button highlighted in Figure A above to edit an invoice excise tax rule.
  2.  The form highlighted in Figure E will appear on your screen.

                                                                    Figure E

Deleting Invoice Excise Tax Rule

Follow the steps mentioned below to edit the invoice excise tax rule:

  1. Click the “Delete” button highlighted in Figure A above to delete an invoice excise tax rule.
  2. The dialog box highlighted in Figure F will appear on your screen.

                                              Figure G
  1. Click “Yes, Delete” to continue the process of deleting the invoice excise tax rule.
  2. Click “Cancel” to close the pop-up and skip the deletion process.

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