Work 365

Work 365 Tax Services and Categories

33 views October 7, 2019 October 24, 2019 0

Tax services

Tax services enable the tax calculation on invoices in Work 365. Within Tax services, there are two standard methods for tax calculation which are the Rate-Based Tax & No Tax Calculation.

Create the Tax Service:

  • Filling out the mandatory fields- Type and Name, save it.
    • Name: Name of the Tax Service.
    • Type: They’re the method for calculating taxes in Work 365. We have a standard method for tax calculation which is the Rate-Based Tax & No Tax Calculation.
      • Rate-Based Tax Service will allow you to calculate tax based on pre-defined tax rates from the system.
      • No tax Calculation does not do any calculation and shall be useful in cases where certain customer invoices are not taxable and you can overwrite the same.

  • Enter the Primary Address, Write- In and Default Tax Categories.
    • Primary Address: Address of the Headquarter’s location.
    • Write-In Tax Category: Tax category for write-in subscriptions. Tax category is defined on the product form. See more details below on tax categories.
    • Default Tax Category: Tax category for products that do not have a default tax category defined. See more details below on tax categories.
  • Calculate tax based on: Billing Address or Shipping Address
  • Use rates directly:
    • Yes- Use ‘Tax Group’ setting on parent (eg: Billing Contract, Invoice) – taxes on all items are calculated using this.
    • No- Calculate tax at line item using the Write-In or Default Tax Service Categories
  • Tax Region: Applies tax based on the Country or State
  • Round to decimal: Refers to the decimals that are included in the calculation of the tax
  • Apply Tax to overseas transactions:
    • No- Calculate tax when primary address country is the same as the target country
    • Yes- Calculate tax when primary address country is different from target country

 

Tax Categories

Tax categories are ways to classify your product catalog based on a specific tax rate. It can be based on the region your business operates. They can be defined based on a specific tax rate and then associated with relevant products or services.

For instance, Office 365 Business is assigned the ‘Software- SaaS Downloadable’ tax category on the Product form in CRM.

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