As part of the Accounting Integration package, you can create taxes, set the rate, and assign them to items on invoices. This allows you to track the amount of taxes you’ve paid on any purchases/product coming into your venue.
Depending on the supplier, the prices on their invoices may be tax inclusive or tax exclusive. By setting the tax rates and indicating how the tax is presented, you'll get the true item cost for reporting purposes.
If you’re using supported accounting software, any taxes that you’ve set up in it are imported into WISK when the integration is complete.
You can assign tax rates to invoice items manually, or have them fill automatically based on an item’s properties.
You can then export invoices with the reported taxes to supported accounting software.
Note: Tax rates and reporting requirements vary depending on your country / region. The steps outlined in this article are for the purposes of adding taxes to your account, but provide no guidance on specific tax rates for your location. Please consult with your accounting team when setting up your rates to be in accordance with your local tax laws /reporting requirements.
To add taxes on the WISK Web Portal:
Hover your cursor over your username on the bottom left and click “Venue Settings”
Note: If you can’t see this tab, please contact WISK Support and they will enable it in your account
Click “New Tax”
Enter the name of the tax and click “Save”. If you're integrated QuickBooks Online, see the section below.
Linking with Accounting Software
If you have integrated your accounting software with WISK (currently only Quickbooks Online), you’ll see a “Tax name in accounting” field. Click the drop-down menu to select from the taxes already in your accounting software.
When you select this, the tax name field updates automatically to your selection. Selecting the correct “Tax name in accounting” is important because it links the tax in WISK to the tax in your accounting software. If they aren’t linked, invoices won’t export to your accounting software.
Enter Tax Rate
After creating the tax, you need to assign the rate.
Depending on your country/region, there are many types of taxes that can be applied; local / municipal, provincial / state, and federal.
There may also be items that you purchase that are exempt from some or all taxes.
When adding a tax rate, you’ll indicate whether it’s the following:
Tax Exempt / Zero Rated
For more information about each, see the sections below.
Note: If your accounting software is integrated, make sure that you are entering the same tax rate % as it appears there.
A single or simple tax applies just one tax rate to an item. Something such as a state tax or federal sales tax (GST, HST, or VAT).
Enter the name of the tax, and make sure that “Single tax” is selected
Enter the tax rate in the “Rate” field. The “Computed rate” updates to reflect what you entered
The Tax has been set up and can now be assigned to items. If you need to edit a tax rate, click the “Details” column
A compounded tax, or stacked tax applies more than one tax rate to an item. In this case you’ll add each tax rate, and indicate whether they are all applied equally to the subtotal.
For example, in some provinces in Canada, there is both a Goods and Services Tax (GST) and a Provincial Sales Tax (PST) that are applied equally. In the United States, there may be a state sales tax, and a city / county tax.
When items with this tax are exported to accounting software, it shows the breakdown of how much was paid for each tax rate.
To set up a compounded tax:
Enter a name for the tax that represents each component and select “Compounded taxes”
Click the “+” button that appears under the “Compounded taxes” modal
Enter the name of one of the taxes and enter the rate. The priority is set to 1 by default. Click the checkmark to add the tax. For more about priority, see “Setting the Priority”
The tax rate gets added to the compounded tax, and the “computed rate” updates. Add additional taxes as required
Once all of the taxes are added, you’ll see the total computed rate
The Tax has been set up and can now be assigned to items. If you need to edit a tax rate, click the “Details” column.
Setting the Priority
Depending on your region, multiple taxes may:
Apply equally to the subtotal, or
One tax rate is designated the primary rate, and the other tax is applied to the subtotal + the primary tax
If they all apply equally, set each tax as the same priority.
In the example above, the GST and PST are applied to the subtotal equally. If the cost of goods purchased is $100 before tax, $5 will be paid from GST, and $7 will be paid from PST for a total of $112 including taxes.
If one tax is considered the primary tax, set its priority to 1, and set the other tax to 2.
Note: The number of selectable Priorities increases depending on how many taxes you have added.
In the example above, the GST has a priority of 1, and the PST has a priority of 2. If the cost of goods purchased is $100 before tax, the GST of $5 is applied first.
The 7% tax rate of the PST is then applied to the original subtotal + the primary tax ($105). The amount of PST paid is then $7.35 ($105*0.07). The total including taxes is $112.35.
Note: The "computed rate" updates to reflect this, showing the rate as 12.35% instead of 12%.
Tax Exempt / Zero Rated
You may purchase items from your suppliers that are tax exempt or zero rated. Make sure to create a tax rate to account for either of these that you can assign to your items (if this needs to be tracked).
While it may vary by country, zero rated items are taxed at a rate of 0%, and allows the producer to claim input credits.
Tax exempt items have no taxes applied, and producers cannot claim input credits.
To set this up, give the tax an appropriate name, and leave the “Rate” field blank.
The Tax has been set up with a rate of 0% and can now be assigned to items. If you need to edit a tax rate, click the “Details” column.
Assigning Tax Rates
When adding invoices, you can assign taxes to invoice items manually, or you can assign them to higher level categories to have them populate automatically.
You can assign taxes at the following levels:
Note: When auto-populating the taxes for an item on an invoice, it checks in this priority order: Item > Distributor > Category > Family.
For example, if you assign a tax rate to an Item Family, but have also assigned a tax rate to an individual item, it auto-populates the individual item’s tax rate because it's a higher priority. You can change the tax rate manually if needed.
How you set this up will depend on your preferences and how taxes are applied in your region.
When you assign a tax rate at any of the levels above, it only applies to new invoices moving forward.
To assign a tax rate at the individual item level:
On the “Items” page of the WISK Web Portal, place your cursor over the item and click the pencil icon
Scroll down to the “Tax rate” field and click the drop-down menu
Select the tax rate you want to assign to this item
The tax rate is now assigned to the item. When you add this item to an invoice, it will populate with the selected tax rate by default
To assign a tax rate to a distributor:
From the "Distributors" page on the WISK Web Portal, place your cursor over a Distributor and click the "Details" column
Click the "Tax Rate" drop-down menu and select the rate you want to apply
The Tax Rate is now assigned to the Distributor. When you add an item assigned to this distributor it automatically applies this tax (unless a different tax has been set at the individual item level)
Note: The item has to be assigned to this distributor for the tax rate to populate. It won't automatically assign the tax rate if you create an invoice for this distributor.
To assign a tax rate to an Item Category:
From the Families & Categories page on the WISK Web Portal, place your cursor over an Item Category and click the "Details" column
Click the “Tax Rate” drop-down menu and select the rate you want to apply
The Tax Rate is now assigned to the Item Category. When you add an item of this category to an invoice, it automatically applies this tax (unless a different tax has been set at the individual item or distributor level)
To assign a tax rate to an Item Family:
From the Families & Categories page on the WISK Web Portal, place your cursor over an Item Family and click “Edit Family”
Click the “Tax Rate” drop-down menu and select the rate you want to apply
The Tax Rate is now assigned to the Item Family. When you add an item of this family to an invoice, it automatically applies this tax (unless a different tax has been set at the category, distributor or individual item level)
Taxes on an Invoice
After adding the taxes and assigning them, your setup is rewarded when adding invoices to your venue.
When adding an invoice, the tax rate field for each invoice item populates automatically if you’ve assigned them earlier.
For unassigned items, you can assign the tax rate as you add items to the invoice or modify existing ones.
When adding an invoice, either regular or draft - you’ll need to select the tax setting. This determines how item costs are calculated in your venue. You can select the following options
The option you choose depends on the format that your supplier uses on their invoices.
There are no taxes, or taxes aren’t being tracked on this invoice.
Also called taxes in or tax inclusive, the cost of each item on the invoice includes the assigned tax.
In the example below, we received 10 units of an item at $25/unit. This $25/unit is tax inclusive. Based on the rate of the assigned tax, it calculates the subtotal without tax ($221.24), and the total with tax ($250.00).
The subtotal is used to calculate the cost per unit without tax ($22.12) which is used in various calculations (inventory value, recipe costing, etc).
Also called taxes out or tax exclusive, the cost of each item on the invoice doesn’t include the assigned tax.
In the example below, we received 10 units of an item at $25/unit. This $25/unit is tax exclusive. The assigned tax rate is applied to the subtotal ($250.00) to calculate the total ($282.50).
The cost per unit without taxes ($25.00) is used to calculate inventory value, recipe costing etc.
Items with Assigned Tax Rates
When you add an item to an invoice, if you assigned a tax rate at any level, it populates with that rate automatically. You can click the drop-down to change the tax rate if needed.
Selecting a Tax Rate (Unassigned Items)
If you haven’t assigned a tax to an item beforehand, you can select the tax rate by clicking the “Tax rate” drop-down menu:
Changing an Item’s Tax Rate
If an item has already been added to the invoice, you can click the “Tax rate” field to change the tax on the item.
When adding any additional Charges to the invoice, you can also select a tax rate:
The charges display underneath the line items on the invoice with the selected tax: