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Setting Up Alternative Tax Rates

Last updated 26/08/2019

This article explains how to set up alternative tax rates.

Overview


Alternative tax rates alter the tax rate applied to your sales or purchases. If you have alternative tax rates set up in Xero, these can be downloaded into Cin7. For information on how to set up these rates in Xero, please see Xero's Help Documentation.

Alternative tax rates can be applied manually to a Sales Order or applied to a contact in the CRM so that the correct tax rate is applied automatically to their transaction. 

Downloading Tax Rates from Xero


To import tax rates from Xero:

  1. Login to Cin7 using an administrator account.
  2. From the left navigation, select Accounting, then click Xero.
  3. The tax rates will have successfully downloaded from Xero to Cin7.

Although it is possible to manually create or update Tax Rates in Cin7, we recommend creating these Tax Rates first in Xero to ensure that they are set up correctly. If you do make any changes to your tax rates on Xero you will need to repeat the process above to re-download them from Xero. Alternatively, you can use the Xero Setup Wizard.

Applying an Alternative Tax Rate to a Contact


Tax rates can be applied to contact in the CRM so that the correct tax rate is applied automatically to all of their transactions.

This can be useful for several reasons. For example, a customer may be located in a particular US state with its own tax rates, or they may be a charity that does not pay GST or VAT.

To apply a tax rate to a customer:

 

  1. In the CRM module, locate the contact you would like to edit.
  2. Click on their Name or Company.
  3. In the Accounts section, select the correct tax rate from the Tax Status dropdown.
  4. Click Save

The tax rate will now be automatically applied to the customer, meaning that you will no longer need to apply it manually to each of their Sales Orders.

Applying an Alternative Tax Rate to a Sales Order


To apply an alternative tax rate to a Sales Order simply select the correct rate from the Alternative Tax Rate dropdown.

You will see the newly applied tax rate at the bottom of the Sales Order, above the Total.

Applying an Alternative Tax Rate to a Purchase Order


To apply an alternative tax rate to a Purchase Order simply select the correct rate from the Alternative Tax Rate dropdown.

You will see the newly applied tax rate at the bottom of the Purchase Order, above the Total.