Creating Sales Tax Items, Groups, and Suppliers

The basis of Sales Tax setup in RIMSS are the Sales Tax Items and Sales Tax Groups.  Ensuring you have enough detail in this setup will simplify reporting and paying Sales Taxes.  In this document, we review the setup required to add new taxes to your existing setup.  

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Sales Tax Supplier Setup

Creating Sales Tax Items

Creating Sales Tax Groups

Sales Tax Supplier Setup

When creating the Sales Tax Items, you will be assigning the Revenue Agency where you pay the taxes.  This will be a Supplier that is set to Supplier Type of Sales Tax Agency.  Open or create your Revenue Agency Supplier and navigate to the details tab to set the Supplier Type.

Once you have set the Supplier Type to Sales Tax Agency, you will have the option to designate the State for which this agency represents.  This field is required for the TaxJar integration only.

The payment terms will determine the due date of Sales Taxes collected within the Sales Tax Detail Report.  Set the payment terms to COD to ensure that the sales tax report will pull the information correctly.  There are special situations in which a dealer may use a different payment term for their sales tax supplier.  We recommend that you consult with RIMSS prior to changing the payment terms of a Sales Tax Supplier to ensure that you do not break the process of reporting and paying Sales Tax.  Click one of the Save Options once you have set your Sales Tax options on the Details tab.

Creating Sales Tax Items

Sales Tax Items are the individual jurisdictional rates that must be collected and reported in your sales tax filings.  Sales Tax Items can be created as individual items for the State, County, and Local taxes when you must report each of these taxes separately.  They can also be created as a total rate to include all State, County, and Local taxes when you do not need to separate them in your reporting.

We recommend separating your local and state taxes into individual jurisdictions to ensure you have the detail required for reporting, paying, and auditing your Sales Tax.  

We will display examples of setting up Sales Tax Items that include a State, County, and City rate where the 3 jurisdictions are separated into different Sales Tax Items and where they are combined into one Sales Tax Item.  

Our examples will show both options for setting up the jurisdicational taxes listed below.  This example is for demonstration purposes only and does not accurately represent tax setup for the jurisdictions shown.

To set up new Sales Tax Items, navigate to:

Company > Sales Tax > Sales Tax Items

Click on "Add New" at the top left of the screen to prompt for the New Sales Tax Item pop-up.

In the pop-up for a new Sales Tax Item, complete the following information:

Item Name: Name of the Jursidiction

Sales Tax Agency:  Select the correct Sales Tax Supplier from the dropdown

Rate: Sales Tax Rate charged by the jursiction

As Of Date:  Start date of the sales tax rate**

Apply Limits:  Select this box if there is a limit on the sales amount to charge the tax

Taxable Limit:  If Apply Limits is checked, enter the Limit where the Sales Tax changes

Rate After Limit Exceeded:  Rate to charge after exceeding the Taxable Limit

Print on Invoice:  Check this box to print required detail on Canadian invoices

Tax on Tax: Check this box if you must charge and collect tax on the Sales Tax

Inactive: This box should not be checked on Sales Tax Items.  Checking Inactive on a Sales Tax Item may cause errors in opening existing Invoices containing the Sales Tax Item.

** You may add new rates with a future As of Date and the new rate will be applied once the date arrives.  Two lines should not be given the same As of Date or duplicate taxes will be applied.

Creating Individual Sales Tax Items for each Jurisdiction

In our first example, we are looking to set up sales tax items for State, County, and City taxes individually.  The screenshots below match the individual Jurisdictional setup per the chart above.

Creating a single Sales Tax Item to include all jurisdictional taxes combined

In this example, all taxes are combined into one Sales Tax Item.  In this setup, there will not be detailed reporting on each jurisdictional tax.

Creating Sales Tax Groups

A Sales Tax Group allows you to add one or more Sales Tax Items to create a combined rate that will be calculated and collected on Invoices.

To create a Sales Tax Group, navigate to:

Company > Sales Tax > Sales Tax Groups

Click Add New at the top left of the page to prompt for the pop-up for a new Sales Tax Group.

In the pop-up for a new Sales Tax Group, complete the following information:

Group Name: Name to identify the Sales Tax Group on Invoices

Group Description: Longer name to identify the Sales Tax Group on Invoices

Selected Sales Tax Items: Select included Sales Tax Items in the box on the left, then click add.  Continue this process until all included Sales Tax Items have been added.

Inactive: Click this box if you no longer want this Sales Tax Group to populate on Invoices.

Default: Check this box to make this Sales Tax Group default on all Invoices in the current location. The Sales Tax Group must be created in the location where it will be marked as the default.

Example of a Sales Tax Group with Individual Jurisdiction Sales Tax Items

In this Sales Tax Group, we have all three jurisdiction Sales Tax Items that are applicable in the City of San Antonio.  The Group will calculate and charge the combined rate of 8.25% on all Invoices while still providing detailed reporting for each jurisdiction.

Below is how the Sales Tax Detail Report will populate the sale with individual rates.

Example of a Sales Tax Group with Combined Jurisdiction Sales Tax Items

In this Sales Tax Group we have a single Sales Tax Item that combines all three jurisdictions. The Group will calculated and charge the rate of 8.25%, but there will be no detailed reporting for each jurisdiction.

Below is how the Sales Tax Report will populate the sale with the combined rate.