This page is setup to help you pull back sales tax numbers and totals. As a friendly reminder, the sales tax values (settings and percentages) are tied to the locations. The word "Location" is a corp-wide setting and may be changed to fit your business needs (stores, departments, clinics, cost centers, etc.). In order to sale an item or service you use a tool called an invoice. The invoices are then tied to locations for inventory tracking and tax settings. The invoices hold the sales tax that is collected on a per line item basis. This allows the system to be very flexible and allows for multiple different taxing options (certain taxes for certain things). Once all is said and done, the sales tax collected will remain as a sub piece of the invoice line items. This page, the sales tax report, pulls back grouped values from the invoice line items for a specific date range and for a specific location or store.

The page is capable of showing four different report types. The reports start out very general and slowly drill-down to more and more details (if needed). The different report types are: Level 1 - General Grouped Totals (default report type), Level 2 - Daily Groups (what happened day by day), Level 3 - Invoice Groups (what happened per invoice), and Level 4 - Invoice Line Items (actual details).

To use the sales tax form and report, simply choose a report type, a search type, a location, and enter the report dates. The application will look for all invoices during that time and will return the correct report (based on the level you asked for). If the search form is hidden, use the show/hide button to interact with the search criteria.

Each search type will return different records. All reports will have links to the main invoices and the stock/units (if applicable). The totals will be at the bottom of the report. The only exception to this is for the invoice groups report. Those totals will be at the top of the page due to the possibility of a large number of individual invoices that could be displayed based on the corporation and the date range.

Another common question about sales tax is how do I pay the state or other entity? This is done through a thing called an "expense/receipt". An expense/receipt is how you record money that goes out from your corporation. Expense/Receipts are tied to banks, vendor/payees, and also help with things like payables and outstanding liabilities. If you need more step-by-step instructions about paying sales tax, please contact Adilas support and they can help you walk through the process.

Quick sales tax process - Without getting super technical, sales tax is collected by your corporation as invoices are created and paid for. That money, from the invoice payments, is then deposited into a bank or other financial institution. The problem is that only part of that money is yours. You technically still owe that sales tax portion to some outside entity (usually a government agency). As the sales tax sits there and virtually stacks up, you technically have a thing called a "liability" or you "owe" someone something. That liability gets recorded on a thing called a "balance sheet" so that you make sure you know that you still owe for the monies already collected. Once taxes get paid off, they lower the amount owed and actually take money out of your bank (hence an expense/receipt). Inside of Adilas, some of these steps are automated and some are manual steps that need user interaction to make them happen. Once again, this is just a quick walk through of what happens. If you need more information, please feel free to contact Adilas support.

Another common question is how are sales tax numbers figured. To answer this, we will tell you how each invoice line item figures the correct taxes. First off, we get the total extended price per line item. This is the quantity times the price. This creates the extended price. We then do a look-up to see what kind of item we are dealing with. This could be any number things and deals with main types, sub types, item/part categories, or special internal line items. Basically, we match the item up to the tax settings stored on the location and tax settings page. We then add up the total tax rates to be collected. For example: Say we had 2.9% for state, 2% for county, 2% for city, and a special tax rate of 1.75% for a specialty tax. The total of the tax rates would be 8.65%. We would then take the extended price times the total tax rate. This number is what we call the end goal. We then figure out the smaller pieces by taking the extended price times each smaller percentage. Each value gets rounded to the nearest cent. When we get all done, we add up all of the smaller values that we got during the calculations. As a final check, we check for a difference between the "should be taxes" and the "actual taxes". If there is a difference (rounding errors) we alter the state tax field as the common denominator. What this means is basically we force a match to the total taxes that should be applied. So, in a nut shell, the one possible value that will flex (go up or down) is the state tax calc. That value will be adjusted by the rounding error if any. Anyways, we hope that helps your understand how the taxes are calculated on a line by line basis.

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