Detailed Field Information Related Information Examples & Tutorials
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Tax

The Tax form stores your tax rates. Tax is calculated on the commission you receive from your clients when you post debtor payments. Whenever you post a payment transaction with a commission amount, the settings in the Tax form will be used to calculate any tax charges.

Up to four tax rates may be set on the account. Breakdown settings enable you to apply separate tax rates to various types of transactions. Please see the Tax and Breakdown example at the end of this document for details.

Accessing And Setting Tax Rates

You can view tax rate settings from the Financial Detail form or from the Client Settings form, if you have set the rates at the Client level. You can also set a Tax Rate for a particular Transaction or a particular Transaction Type.

The Tax form is accessed from the Client form by selecting the ADVANCED button to open the Client Settings form. It is recommended that you set the rate in the Client Settings form, if possible.

The Tax form is accessed from the Debtor form by selecting the Rate field or by tabbing into the Rate field and pressing F2. Select the Tax tab when the Financial Detail form is displayed. You can set the rate at the Debtor level if you have different rates for Debtors belonging to the same Client.

When you view a Transaction Type or a Transaction, you will also see the Tax tab. It may already have values in it "inherited" from the Client or Debtor settings. You can set the rate here, if needed, for special types of payments.

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Tax 1

If you charge tax on commissions that you earn, enter a percentage tax rate here. (e.g. Enter 7.0 for 7%) This is the tax charged on any commissions that you receive for debtor payments. This rate is automatically written into the Tax Rate field for any transaction posted for this debtor when there is a commission amount. Tax is calculated on the commission amount only and is displayed in the Tax field of the transaction.

This field must contain a value if you are calculating tax on commissions for this debtor.

When a new debtor is entered, this field is filled automatically from the Client Settings Tax Rate field. You can change the rate for this particular debtor to override the rate used generally for the client.

Select the type of transaction to apply this tax to by placing a check mark in the appropriate box in the columns next to this field.

Please refer to Tax and Breakdown below.

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Tax 2

You can enter a percentage here if you need to charge a different tax rate for the breakdown type that is check marked for Tax 2.

Please refer to Tax and Breakdown below.

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Tax 3

You can enter a percentage here if you need to charge a different tax rate for the breakdown type that is check marked for Tax 3.

Please refer to Tax and Breakdown below.

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Tax 4

You can enter a percentage here if you need to charge a different tax rate for the breakdown type that is check marked for Tax 4.

Please refer to Tax and Breakdown below.

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Principal

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Principal.

Please refer to Tax and Breakdown below.

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Interest

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Interest.

Please refer to Tax and Breakdown below.

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Fees

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Fees.

Please refer to Tax and Breakdown below.

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Legal

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Legal.

Please refer to Tax and Breakdown below.

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Misc

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Misc.

Please refer to Tax and Breakdown below.

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Other

Select a Rate or Rates that you wish you apply to any portion of the Transaction that goes to Other.

Please refer to Tax and Breakdown below.

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Don't Calculate Tax

Switch this ON to prevent the calculation of tax for this debtor or transaction. This switch is visible only when you are viewing Financial Details, Transaction Type or Transaction form.

tip.gif Set this switch BEFORE you enter your payment amount in the To Us or Direct fields. If you fail to do this, and you see an amount in the Tax field, simply delete it to remove the calculated Tax.

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Client Is Tax Exempt

If you switch ON "Client is Tax Exempt" in the Client Settings, Tax will not be calculated even if you have set tax rates at the Debtor level.

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Total Tax

Summary calculation of all tax charged on this transaction. This field is visible only when you are viewing a Transaction.

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Tax And Breakdown

Collect! enables you to calculate up to four tax rates in the Tax settings. These rates may be applied to different categories of monies posted on the account. We will demonstrate all of Collect!'s settings.

Below is an example of a Debtor's Tax Rate settings using all the available settings, just to demonstrate how Collect! calculates tax with multiple rates and breakdown. You may not require this level of complexity in your tax calculations. Use only what you need.

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Tax Rates Settings

For our example, this Debtor owes $210 posted in the following way. We have posted an amount to each one of Collect!'s Financial Types to demonstrate.

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Debtor Screen with Transactions Posted

Next we ensure that the Financial Types breakdown order in the Transaction Type suits our demonstration's purposes. This order can be changed as needed in your use.

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Transaction Type with Breakdown

Now, we post a payment for the entire amount, $210. Notice that Collect! has copied into the Transaction, all of the settings from the Debtor's Commission Rates. Collect! has also performed the calculations and has arrived at the total commission owing. We see all the rates and the commission amounts.

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Payment Posted with Commission Calculated

Notice that Collect! has also copied into the Transaction, all of the settings from the Debtor's Tax Rates. Collect! has also performed the calculations and has arrived at the total tax owing on the Commission Amount. We see all the rates and the tax amounts.

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Payment Posted with Tax Calculated

When we select the Breakdown tab in the payment we just entered, we see the totals for each category. We see the dollar amount for each Financial Type and the commission and tax amounts.

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Amount Posted to Each Financial Type

This short example shows you the impressive amount of flexibility Collect! offers for managing your accounts and calculating your commission and tax.

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See Also

- Financial Detail

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