Tax Rates

Tax Rates

Tax Rates Overview

When a product is sold, the tax will apply and be calculated using the subtotal amount of the product. Different tax rates may be applied to a product in various locations or regions.

How the tax rate will be configured under FTx Cloud POS: Tax Rates > Tax Groups > POS Flags > Departments > Products fall into the specific departments.
You can configure as follows:
  1. Tax Rates: Configure the tax rates, and these rates will be location-specific. 
  2. Tax Groups: Tax rates will be added to the tax group. Whatever tax rates (single or multiple) are applied to the product, they must be assigned to the tax group. 
  3. POS Flags: The tax group, age restriction, and excise tax, if applicable, will be assigned to the POS flag. It is possible that one tax group can be assigned to multiple POS flags.
  4. Department: The POS flag will be assigned to the department, and its products will be classified according to a specific tax group, age restriction, and excise tax, if applicable. It is possible that one POS flag can be assigned to multiple departments.
  5. Products/Items: Only one department will be assigned. The department is to classify the products into specific tax groups, age restrictions, and other options. 

Reaching the "Tax Rates" 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
Figure 1.1 below will help you understand the navigation better.
Figure 0.1

Understanding the "Tax Rates" Main Page

By clicking "Taxes" from the left panel, the Tax Rates page will be redirected by default.

Figure 0.2
Tax Rates List Page Information:
  1. You will see the list of the existing tax rates.
  2. The Tax Groups column displays the tax rates assigned to each group.
  3. Tax rates can be assigned to multiple tax groups. If a tax rate has not been added to a tax group yet, it will be shown as N/A.
  4. Min and Max columns are the minimum and maximum taxable rates of the tax.
Action Buttons:
  1. Add New: This button allows the user to add a new tax rate.
  2. Edit Tax Rate: This button allows the user to modify the details of the tax rate.
  3. Delete Tax Rate: This button allows the user to remove the tax rate.
  4. Manage Tiered Tax Configuration: This button opens the configuration screen for setting up tiered taxes, explained below in section 4. Managing Tiered Tax Configuration.

1. Adding a New Tax Rate

Follow the steps mentioned below to add a new tax rate:
  1. Click the "Add New" button that is highlighted in Figure 0.2 to add the new tax rate.
  2. After clicking the "Add New" button, the form highlighted in Figure 1.1 will appear on the screen. 

Figure 1.1

Create Tax Rate Fields information: 
You will see the fields of the tax rates as shown in Figure 1.1 above. 

1. Name: Enter the name of the tax rate. (The tax rate name would be similar to taxes that are applied to selling the products, so it will be easy to identify the tax.)

2. Account Number: Select an existing Pricebook Zone from the drop-down selection. This field will copy the settings of the selected Pricebook Zone for the new Pricebook Zone, i.e., the product’s cost and price.
This will help to avoid manual entry with the common settings to reduce the time for the new Pricebook Zone.

3. Rate Locations (Change All): Enter the specific tax rate value for all the locations (stores) with just one click. The Change All section is explained individually. 
  1. Change All: You can enter the common tax rate for all the locations, so you will not require all the tax rates manually. This is the bulk updating option for the tax rates.
By clicking on the "Change All" button, you will see the pop-up with the Apply For and Rate Value fields. See Figure 1.2.
  1. Apply For: You can select the tax type from the drop-down selection to enter the tax rate value.

 Figure 1.2
  1. Rate Value: Enter the applicable tax rate value as per the tax type selection (percentage or flat value). See Figure 1.3 below, i.e., here, the Rate Value type is selected, and the 5 (%) tax rate value is entered.                                                                                                                                                                                                                  Figure 1.3
4. Tax Rates (Location-Wise): You will see the lists of the locations (stores) with the Tax Rate value (%), Flat Tax value, and Occupational Tax value (%). Enter the applicable tax rate values manually.
NotesThe Tax Rate and Occupational Tax values will be expressed as percentages (%), while the Flat Tax value will be described as a flat amount.


5. Tiered: This button opens the configuration screen for setting up tiered taxes. Tiered taxes allow you to define tax structures that change based on quantity, price ranges, or levels, which is useful for locations that use tier-based calculations. 

Figure 1.4
  1. Select the State name associated with the city to configure the tax rate.

  2. Clicking the Manage button will allow you to edit/update existing tiered tax values or add a new tiered tax configuration. This is explained in section 4. Managing Tiered Tax Configuration.
Action Buttons
  1. Cancel: The tax rate will not be added (saved), and you will be redirected to the list of Tax Rates page.
  2. Save & Close: Click on this button if you want to save the tax rate details and close them.
  3. Save & New: Click on this button if you want to save the tax rate details and create another new tax rate.
  4. Save: Click on this button if you want to stay on the tax rate details page after saving it.
Once the tax rate details are saved, the new tax rate record will be listed on the Tax Rates page. See Figure 1.5 below.
    1. The newly created tax rate has yet to be assigned to the tax group, so it shows N/A.
    2. The minimum tax rate (%) in the example below is 4, and the maximum tax rate is 5 for the different locations, respectively.
 Figure 1.5

1.1 Assigning Tax Rate to Tax Group

Once you create the new tax rate, the admin user can assign it to the tax groups where the tax rate is applicable. See Figure 1.1.1.
Info
Information on how to assign tax rates under the specific tax group is provided in the individual KB article on tax groups.


 Figure 1.1.1

2. Editing Tax Rate Details

Follow the steps mentioned below to edit/update the tax rate details:
  1. To edit the tax details, click the Modify button that is highlighted in Figure 0.2 or simply click on the tax rate name from the list.
  2. In both cases, you will be redirected to the Tax Rate details page. See Figure 2.1 below.

Figure 2.1
1. You can see the existing tax rate details.
2. Delete: By clicking on the "Delete" button, you can delete the tax rate record and remove it from the system. If you click, a warning message will pop up on the screen to confirm the deletion.
3. Print: By clicking on the "Print" button, the tax rates will be downloaded in PDF and then printed out as needed. 

Other Buttons:
  1. Cancel: The tax rate will not be added (saved), and you will be redirected to the list of Tax Rates page.
  2. Save & Close: Click on this button if you want to save the tax rate details and close them.
  3. Save & New: Click on this button if you want to save the tax rate details and create another new tax rate.
  4. Save: Click on this button if you want to stay on the tax rate details page after saving it.

3. Deleting a Tax Rate

Follow the steps mentioned below to delete the tax rate: 
  1. Click on the "Remove" button highlighted in Figure 0.1 to delete the tax rate. You can delete the tax rate record from its editing page as well.
  2. In both cases, the confirmation pop-up will be asked. See Figure 3.1 below.

Figure 3.1

3.1 Deleting an Assigned Tax Rate

You cannot delete the tax rate if you have already been assigned to one or multiple tax groups. If you try to delete it, you will see the notification message as shown in Figure 3.1.1. Make sure to remove any tax rate you wish to delete from any tax group prior to deleting the rate to avoid the error.


Figure 3.1.1

4. Manage Tiered Tax Configuration


Figure 4.1

The Add Tier Tax Configuration screen allows you to set up tiered tax rules for a specific state. Tiered tax lets you define different tax amounts based on ranges of taxable amounts instead of using a fixed percentage.

Fields Description:

1. State Dropdown: Select the state for which you want to create the tiered tax configuration. Each state can have its own independent set of tiers.

2. Add New Tier: Click this button to add a new tier row.

Each tier includes:

  1. Range Start: Configure the lowest taxable amount at which the tier becomes active. If an item’s taxable value is equal to or higher than this amount, it falls into this tier.

  2. Range End: Configure the highest taxable amount covered by the tier. If an item’s taxable value is equal to or lower than this amount, it remains within this tier.

  3. Tax Amount: Configure the fixed tax amount that will be applied instead of the percentage rate, but only when the taxable value falls within the defined Range Start and Range End limits.

You can add multiple tiers to fully define how tax should be applied across different taxable ranges.

3. Action Buttons
  1. Cancel: Close without saving changes.
  1. Save: Save the tier configuration for the selected state.
  1. Delete All Tier Config: Remove all existing tier tax configurations for that state. 

    1. Delete Single: When tiered tax is configured, click here to remove that specific tier row from the tax configuration.  

Figure 4.2

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