Tax Mappings allow you to automatically distribute the cost of your taxes to other line items on your invoices.
** Note - To start, you will need to ensure at least one tax has been created under Accounting>Credits, Charges & Taxes to apply your mappings to. The tax will need to either be calculated based on tax mappings or use a distribution option that refers to Tax Mappings.
Please refer to Credits, Charges & Taxes if you need assistance creating Taxes. **
Creating Tax Mappings
To Create a Tax Mapping, navigate to Accounting>Tax Mappings in Books. Then select "+ Add Tax Mapping".
From the pop-up modal, start by choosing if you want this mapping to apply to all platforms or if you want it only for a specific platform from the platform drop-down menu.
** Note - Selecting all will limit your types to Credits or Charges.**
Then, choose the type. You can choose between Category, Item, Charge, or Credit. Choosing a Category will ensure the tax is applied any time an item from that Category is added to an invoice. You can further filter by selecting a subcategory as well.
Once the type is selected, click "+ Add Tax" to choose what Tax you want to apply for this mapping.
Finally, select "+ Add Tax Mapping" to save the mapping.
Tax Mappings on Invoices
Tax mappings will apply to items added to invoices based on the distribution method set within the Tax that was set.
Let's look at a couple of examples to show you how it works.
Distribution methods in subtotal
First, we have a tax that uses the distribution method "Tax Mapping and Amount".
Notice the tax "Sales Tax" is listed in the subtotal for $20.00. Any Charge, Credit, or Tax that has been set with a distribution option is to be listed in the subtotal like this.
We can check the distribution method by selecting Actions>Update Invoice Totals.
This distribution method uses two functions.
- It will only apply the tax to line items with a tax mapping
- It will distribute the tax by the amount of each applicable line item (Higher costing line items will be allocated a larger part of the overall tax entered into the invoice subtotal)
When we look at the line items on the invoice, we can see which items have the tax applied and for what amount. In this example, the tax only applied to lines 1 and 2 since they were both items in a category that had a tax mapping.
Applying the Tax percentage directly to the item
In this example, we are using a tax that applies tax directly to the line item as a percentage rather than distributing the tax as a whole amount from the subtotal.
Notice the tax "St Tax" is greyed out in the subtotal. This means that the tax is being applied directly from the items and can't be edited or adjusted under "Update Invoice Totals".
When we look at the line items that have a tax applied, you can see the tax amount applied and the tax percentage that was used.
