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Overview
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The Office System allows the user to create various combinations of Tax and Service Charges that can be applied at multiple levels. In this guide, we will learn how to set up Taxes, Service Charges, make Tax percentage changes, set up items to point to the correct Tax and Service Charges, apply Tax Code overrides, and review the variables impacting the Tax application. Tax and Service Charge have two layers in the Office System. Tax Code Items are where the user sets up the individual Tax and Service Charge rates. Tax Codes are where the user sets up the combinations of Tax and Service Charge to apply to an item/area. Use Case(s)
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Content
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Important: The system applies Tax and Service Charges on the Price of the item, not the subtotal.
Accessing Tax Code Items
To access Tax Code Items,
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When setting up a tax, complete the following information as shown/listed below.
Name - Give the Tax Code Item a name. The name you give the Tax Code Item should be a distinctive description, especially if there is more than one percentage or rate.
Example:
- Sales Tax
- Liquor Tax 1.5%
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- 5%
Description - Enter an optional description for internal purposes.
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Continue populating the Default fields as needed.
Rules - Click the drop down arrow and select the rule that applies. Options include:
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- Base - will tax the total of each taxable item not including Service Charge.
- Base + Service Charge - will tax the total of each taxable item including the Service.
- Charge - both item and service charge will be taxed.
- Service Charge - will only tax the service charge total and will exclude all items taxable and nontaxable.
Percentage - Enter the Tax Percentage (if this is not a percentage leave blank and go to Rate).
Rate - Enter the Rate if applicable (this is a flat dollar amount).
Minimum Sales Amount to Tax - Use if tax is not to apply to an item price less than a specified amount. Example: if the minimum sales amount to tax entered is $20.00, the system will not tax items less than $20.00 ($19.99 and less).
Maximum Sales Amount to Tax - Use if tax is not to apply to item price greater than a specified amount. Example: if the maximum sales amount to tax entered is $20.00, the system will not tax items over that amount ($20.01 and greater).
Ledger - Browse to the General Ledger and select the ledger account the tax will post to.
This Tax is Exemptible - If this tax can be exempted or waived, check the box. If the box is not checked, tax will be calculated even if the member or item is flagged as Tax Exempt.
Only Apply Tax Rate to the amount beyond the minimum sales amount - This works in relation to Minimum Sales Amount to Tax. This box would be checked for states that only tax an item over a certain dollar amount. For example, a clothing item is taxed only if it exceeds $150. If a jacket is purchased for $200, sales tax would be applied on $50 ($200 - $150 = $50).
In this example $150 should be the Minimum Sales Amount to Tax.
Service Charge Setup
When setting up a service charge, complete the following information as shown/listed below.
Name - Give the Tax Code Item a name. The name you give the Tax Code Item should be given a distinct description, especially if there is more than one percentage or rate.
Description - Enter an optional description for internal purposes.
Tax Type - Click the down arrow and select Service Charge.
Percentage - Enter the Service Charge Percentage (if this is not a percentage leave blank and go to Rate).
Rate - Enter the Rate if applicable (this is a flat dollar amount).
Minimum Sales Amount to Tax - Does not apply to a Service Charge Tax Code Item.
Maximum Sales Amount to Tax - Does not apply to a Service Charge Tax Code Item.
Ledger - Browse to the General Ledger and select the ledger account the tax will post to.
Service Charge Override
This is used when certain Members or Areas have different Service Charge rules than the normal setup. There are a few different ways in the system to have automatic Service Charges applied at different rates depending on the club rules. Contact Clubessential Support to help you decide the best setup for your club policy.
Before creating the Service Charge Override, the user must first apply the Service Charge Group Type in System Settings and create a Service Charge Member Group to set up the override; as described below.
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The first step is to apply the Service Charge Group Type in System Settings. To do so,
1) Navigate to System across the top toolbar and select System Settings.
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Set Up Service Charge Member Group
The next step is to set up the Service Charge Member Group. All Members who should receive the Service Charge Override should be selected in this Member Group.
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3) The Member Group setup screen will launch. Enter all relevant information shown/listed below:
- Name - Give the Member Group a name.
- Description - Enter an optional description for internal purposes.
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2) Click Add New Rule and enter the appropriate information shown/listed below:
- Member Group - Select the Service Charge Member Group. Please note that only Member Groups with a Service Charge Group Type will be displayed in the lookup.
- Area - Select the Area the override applies or select All Areas if the override should occur at all Areas in the club.
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3) Select Save & Close AFTER you have selected Save Rule Edit.
Tax Codes
As previously mentioned, Tax Codes are where the user sets up the combinations of Tax and Service Charge to apply to an item/area.
Accessing Tax Codes
To access Tax Codes,
1) Navigate to System across the top toolbar and select Tax Codes.
2) The Tax Codes grid will launch.
3) The primary functions associated with managing Tax Codes are embedded in the Tax Code setup screen, which can be accessed by clicking the New button or double-clicking on an existing code.
Best Practices
When ticket splitting is required, ensure to enter Items as normal, and then hit the Split Ticket button to launch the Ticket Splitting screen.
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