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How to charge sales taxes for rental orders

TPS & TPOS can easily compute sales taxes for rental orders. If you have upgrade from an older version to version 9 or newer, please review the Prior to ProfitSystem version 9 section. If this is a new version 9 or later install, please review the ProfitSystem version 9 & later section.

ProfitSystem version 9 & later

Please visit the store/accounts details tab to enter tax rates.

Prior to ProfitSystem version 9

Please review the topics of: Tax Rates & Tax Groups.

There are some set-up details that are important to diagram for multi-store and/or wholesale production users of ProfitSystem. These details are important when sale taxes should be totaled separately for each store/account to facilitate reporting to the government agencies.

TPS & TPOS utilized rental order Order Types to identify the kind of order that is being created. From this information ProfitSystem can determine the tax (if any) to apply.

Data entry operators assign a user defined order type to the rental order when it is created.

Rental Order Set-up Flow chart is:

  1. A ProfitSystem account number is created in the Chart of Accounts for each sales tax total that needs to be reported
  2. A Sales Tax Rate is created in Taxes for each ProfitSystem® account number in Step 1. The account number is assigned to the Tax rate.
  3. A Tax Group for each store/account requiring tax reporting is created and the tax rate is assigned to the group. The Tax Group name for each store/account can be the same.
  4. An Accounting Class code is created or an existing Accounting Class could be used if available. The Tax Group created in Step 3 is assigned to the accounting class.
  5. A rental Order Type is defined (or an existing one used) for each type of order being created that requires separate tax reporting. The defaults shipped with ProfitSystem® are are Gown & Formalwear for retail pricing. Accounting Classes created in Step 4 must be assigned to each order type.
  6. Operators may assign the correct Order Type to new rental orders. WinTPS® & TPOS will default to Formalwear for the pricing type assigned to the Store/Account. See Store/Accounts form for a pricing types explanation.

Sales taxes will appear on the Revenue Report & the Sales Tax report automatically. Set-up for these reports are not required.