When creating an invoice, inclusion of the appropriate tax(es) is an important part of the process. To that end, Atera enables you to create multiple tax types (state, city, hardware, transportation etc.) for automatic (or manual) inclusion in billing batches. You can add taxes within customer contracts, and select a default. Additionally, you can set fixed tax rates on product/service categories. And for complete flexibility, taxes can be adjusted, line by line, on invoices
This article describes how to:
- Add tax types
- Assign product/service tax
- Edit taxes on an invoice
- Create a new 'tax type' on contracts
Add tax types
You can create tax types (state, city, hardware, transportation etc.) for automatic (or manual) inclusion in your invoices.
To add tax types:
1. From Admin, click on Taxes.
The Taxes screen appears.
2. Click on Add tax type.
The Add Tax Type form appears.
3. Give the new tax a name (Type), and set the rate. Then click Add.
The new tax is added, and will appear in the Tax Types list.
Assign product/service tax
Additionally, you can assign a product/service (labor, or specific product and expense category) to a certain tax type (rate).
To assign a product/service to a tax rate:
1. From Admin, click Taxes.
The Taxes page appears.
2. Click on Assign product/service.
The Assign Product/Service form appears.
Note: When assigning a product or expense, the Category menu is pulled from the list of product/expense categories you've created previously. There must be at least two previously created categories for functionality of this module. To create additional categories: Go to Admin > Products & Expenses > Click either Add Product Item or Add Expense Item. > Fill in the parameters (along with a new category) > Click Add. Your new product/expense category is created.
2. Select your parameters:
- From the Product/Service dropdown menu, select either labor, product, or expense.
- If you select a product or expense, the Category dropdown appears. Select the desired category.
- From Tax Type (Rate), select the desired rate.
3. Click Assign. The product/service category is now assigned to the tax rate. When purchased, the tax will appear alongside the item on invoices.
Edit taxes on an invoice
Taxes can be edited, line by line, on invoices, with the ability to either select an existing tax or add a new one. Learn how to create a billing batch and invoices.
Products/Services (labor, product, and expense), as well as their descriptions, appear on invoices, where you can edit the taxes, line by line. Additionally, you have the flexibility to create a new 'tax type' directly on invoices (and even on contracts).
You can also add a new tax type directly on an invoice.
To create a new tax type directly on an invoice:
1. From Billing, on the left-hand panel, click on an invoice.
The invoice opens.
2. From your line item, click in the Tax name field:
- Enter a name in the Tax name field.
- Enter a rate in the Tax rate field.
The tax is calculated and added to the invoice.
3. Click Save and close.
Note: Editing taxes on invoices will not affect or change tax settings in contracts.
To create a new tax type on a contract:
1. From Admin, on the left-hand panel, click Contracts.
The Contracts page appears.
2. Click theedit button to open the contract.
The Contract opens.
Ensure the Taxable box is enabled.
2. Open the tax dropdown menu.
3. Click + Add New Tax.
4.Fill in a name and rate of your choice, and click the icon to save. The new tax type is set and now appears in your tax list.