Streamlining Business Operations with Empress Sales Taxes and Charges

Guides & Tutorials
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Introduction

Introduction

Sales Taxes and Charges is a powerful feature of Empress that allows you to apply taxes and additional charges, like shipping or insurance, to any item in your system. These can be set up through customizable templates which are then used in Sales Orders and Sales Invoices. This feature offers a streamlined approach to managing taxes and other charges, enabling you to configure them in a way that suits your business operations best.

Setting up Sales Taxes and Charges

Access the Sales Taxes and Charges Template by following these steps:

Home > Selling > Settings > Sales Taxes and Charges Template

In this feature, you can create a new template by clicking on ‘New’. To add a new tax or charge, follow these steps:

  1. Name your tax.
  2. Define the ‘type’, which determines how the tax will be calculated and the tax rate. The options include:
    • Actual: Allows you to directly enter the amount for the expense.
    • On Net Total: The tax is calculated on the net total of all the items.
    • On Previous Row Amount: This option allows for compounding charges.
    • On Previous Row Total: Similar to the previous option, but applied on the total bill and not just an item’s amount.
    • On Item Quantity: Tax will be calculated as Tax Rate * Item Quantity.
  3. Choose an account head with pre-set tax rates or create your own.
  4. Select ‘default’ to apply this template by default for new Sales transactions.
  5. Save your settings.

Key Features of Sales Taxes and Charges Template

Sales Taxes and Charges table

The table allows you to configure the tax and includes different fields like:

  • Consider Tax or Charge for: This option allows you to choose how the tax will be applied - to the total of all items, each item, or both.
  • Reference Row #: In the case of taxes based on “Previous Row Total”, you can select the row number to be used as a base for the calculation.
  • Is this Tax included in Basic Rate?: If checked, the tax amount will be considered as included in the Print Rate / Print Amount in the Item table of a transaction.
  • Account Head: This is the Account ledger under which this tax will be booked.
  • Cost Center: If the tax/charge is an income or expense, it needs to be booked against a Cost Center.
  • Description: This is the description of the tax.
  • Rate: This is the tax rate.
  • Amount: This is the tax amount to be applied.

Conclusion

The Sales Taxes and Charges feature in Empress provides a comprehensive solution for managing the application of taxes and other charges to items in your business operations. Through customizable templates, you can define how taxes are calculated and applied, streamlining the sales process and ensuring accuracy in your transactions. This feature plays a pivotal role in enhancing business processes, making it a valuable tool for any business user in Empress.