Creating a Tax Rate

Learn how to create, edit, and delete taxes and what types of taxes are available in Orderry

Amalia avatar
Written by Amalia
Updated over a week ago

If your company is a taxpayer, you can set up and apply tax rules to goods and services added to orders, sales, invoices, and postings in Orderry.

Be guided by your company's activities and create tax rules under the laws of your country.

Creating a New Tax

You first need to enable the use of the tax system on the “Settings > General” page. Tick the checkbox and this will activate the “Taxes” section in your account settings.

1. Go to the “Settings > Taxes” page and click the “+ Tax” button.

2. In the dialog window, fill in all the necessary information.

Name. In this field, you should specify the internal tax name, which will be displayed in orders, sales, and postings.

Name for document. Here, you can type in the additional tax name, which will be displayed in printed documents.

Code. Specify a tax code in this field (no more than 4 characters).

The code is unique within your account and is displayed when you hover over the item in the order, sale, and posting.

Type. Select a type of tax to be created. Choose between “Included” or “Imposed” taxes.

The included tax is a tax that is added to the cost of goods. When using this type of tax, you need to specify the purchase price of the goods with this tax taken into account during the posting procedure.

The imposed tax is a tax that is paid additionally and is calculated from the final cost of goods/services. With this type of tax, the final amount of the order/sale will differ from the total amount of items in that order/sale as the tax will be calculated from the final sale amount.

Rate. In this field, specify the tax rate.

Please note, if you select the included tax type, you can specify only the percentage (%). With the imposed tax type, it is possible to choose between the percentage (%) or a fixed amount.

Important: the percentage value for taxes can be no more than 100%.

Location. Here, you can choose for which locations the tax will be applied if there are several of them.

For example, in one location you are selling as a sole proprietorship, and in another location you are ordering as an LLC. In this case, each location should have its own tax rates in a certain order.

Important: if you have different tax rates for different locations, Orderry will offer to recalculate taxes when you change the status of a work order or make any changes to it.

3. Click “Create”.

Done! The tax is created and displayed in the table. Learn more about how to apply and in what order taxes should be calculated in this article.

Group Actions With Taxes

To perform a group action, check the required taxes in the table, click the “More actions” button and select the required action.

Enable. Change the status of taxes in bulk to “Enabled”.

Disable. Change the state of taxes in bulk to “Disabled”.

Group. This is an action for creating a group of taxes. Created groups are displayed on the next tab.

Tax Groups

To work with different tax rates you can create tax groups in Orderry.

Option 1. Creating a Group on the “Taxes” Tab

1. On the “Settings > Taxes” page, check the taxes that should be included in the group.

2. Click the “More actions” button and select “Group”.

3. Name the group and set up the order of tax applying.

The tax order works as follows: the very first tax in the list has the highest priority. To change the priority, press the vertical triplet and move the tax in the list.

4. Click the “Create” button.

Done! The tax group has been successfully created and is displayed on the next tab. Now you will be able to quickly apply a set of taxes to the required documents.

Option 2. Creating a Group on the “Tax Groups” Tab

1. On the Settings > Taxes page, click the “Tax Groups” tab.

2. Click the “+ Tax Group” button.

3. Add the taxes, adjust their order, and save your changes.

Done! The tax group is successfully created and appears in the list.

Editing and Deleting Taxes

To edit a tax/tax group, double-click its name, make changes, and click “Save”.

To delete a tax/tax group, double-click its name and click the delete button.

Note that after editing or deleting a tax, you can configure how to recalculate taxes in already created, but not yet closed documents (draft postings, invoices, or orders in an unclosed status).

To do this, select the required value at the bottom of the “Taxes” page in the Settings section.

Ask for every document. Set this by default to select the recalculation method in the documents each time.

For example, you created an order, added work and materials from stock, and then changed the tax rate. When you open the order again and make any changes to it, a pop-up will appear while saving the order. In there you will be able to select:

  • Recalculate by the new rules. The new tax rate will apply to all items in the document;

  • Don't recalculate. The old tax rate will be applied to all positions in the document.

Don't recalculate and don't ask. Set this by default so that the old tax rates remain unchanged in the already created documents.

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