If you use multiple price levels, the suggested selling price of an item can be taken from different price levels depending on system configuration.
If using… the suggested price for each item listed will be taken from…
default (no special options) the currently active price level in inventory.
price-based stores the price level specified for the selling store. (Refer to Appendix
B. Preferences for more information.)
customer price levels the price level designated for the billing customer. (Refer to
Chapter 9. Customers.)
comparison pricing the price level specified for the comparison prices. The actual selling price will be Rcpt P$ or Rcpt P$T$. (Refer to Technical
Supplement E2. International Features.)
price level retention between receipts
the price level used on the previous receipt.
W/S PREFERENCES h DOCUMENTS h RECEIPTS:5Retain the same price level between receipts.
quantity pricing the price level designated for the quantity listed. (Refer to Chapter
4.)
promotional pricing the assigned promotional price if listed quantities qualify. (Refer
to Chapter 4.)
an SO and listing items from the SO the SO P$ or SO P$T$.
Preferences: Defining Price Levels
SYSTEM PREFERENCES h MERCHANDISE h PRICING: Define names for up to 240 price levels. 5 Select SECURE to restrict selecting or viewing a price level to users given that security right in Security
Administrator. Use the Prices field in inventory (Form View) to assign item prices for each defined price level.
Price-Based Stores
The Main station can make receipts, vouchers, and slips against any store's inventory and can order merchandise to be drop-shipped to any store. Using price-based stores, the prices suggested on the document will be automatically drawn from the price level designated for the specified store.
Likewise, when receiving merchandise into a particular store's inventory and updating inventory prices, only prices in that store's designated price level will be affected.
POS stations can make documents only for the local store and will use the price level designated for that store.
Preferences: Price-Based Stores
SYSTEM PREFERENCES h STORES h STORE ASSIGNMENTS h5 USE PRICE BASED STORES: Select to
allow price-based stores.
Preferences: Defining Store Assignments
SYSTEM PREFERENCES h STORES h STORE ASSIGNMENTS h A DEFAULT STORE TO USE FOR: <store
number>. Assign a store number to each document or record type (Receipts, POs (Ship To), POs
(Bill To), Vouchers, Customers, SO – Sell From, SO – Process At, Transfer Orders, Out Slips, In Slips, Adjustment Memos, SO Originating Store, Inventory). That will be the default store used when that type of document/record is made at the Main.
Preferences: Assigning Price Levels
SYSTEM PREFERENCES h STORES h STORE ASSIGNMENTS h PRICE BASED STORES: Assign price levels
Taxes
Retail Pro® supports the use of four different taxing methods as well as offering several options for the calculation, display, and printing of tax collected in conjunction with the sale of
merchandise. The amount of tax charged for any item is determined by two factors: the item's tax code and the tax area(s) designated for the sale.
A tax code is assigned to every item in inventory. The tax code defines categories of merchandise, such as clothing, food, and jewelry, which may be taxed differently within any given tax jurisdiction.
Tax areas define the specific taxing instructions to be applied to items with each tax code. The
tax code might designate an item as clothing, but the actual tax rate applied to clothing would be specified by each tax area. A retailer operating in one locality may only require a single tax area. Typically, you will need a tax area for each tax jurisdiction in which you make sales. Stores in different jurisdictions would use different tax areas. Tax areas can also be used for special tax circumstances, such as when making sales of normally taxed items to tax-exempt organizations or for collection of two taxes when using Retail Pro®'s multi-tax feature.
Using the specified tax method, tax codes, tax areas, and other options the program automatically calculates and suggests the correct amount of tax on receipts and SOs. If tax areas have been assigned to customers, then the computed tax amount for the correct area will automatically be suggested when a Bill To customer is added to a receipt or SO. The suggested tax can be overridden for special situations.
Configuring Taxes
The following basic steps are necessary to set up and use taxes in Retail Pro®: 1. Select a tax method and other options.
2. Define tax codes.
3. Define tax areas and assign them to your stores. 4. Assign tax codes to inventory items.
Preferences: Taxes
SYSTEM PREFERENCES h TAXES. Select tax method; define tax rates, codes, and areas; and set other options as applicable.
Selecting a Tax Method
There are four tax methods available in Retail Pro®.
Sales Tax A tax method in which inventory prices (Inven P$) do not have tax added. With this
method, sales tax is added at point of sale to items defined as taxable. Tax rates vary from one area to another. You must define instructions for each tax area in which you sell.
VAT (Value Added Tax) A tax method used in many countries, in which a tax is included in
the purchase price of items. VAT rates vary from one country to another. Selecting VAT as your tax method changes many Retail Pro® activities to automatically display, process, and/or track prices with tax (P$T$) instead of price without tax (P$). VAT can be rebated to the customer in certain situations. (Refer to Technical Supplement E2. International Features for more
information.)
ICM Alternative VAT mode used in countries such as Brazil where the VAT percentage is
applied to P$T$ rather than P$.
Sales Tax - Multi This method allows the application of two sales taxes for situations where the
two taxes must be collected, tracked, or reported separately. Alternatively, allows the first tax to be included when calculating the second tax.
To define a tax method and tax options:
1. From Retail Pro®’s Home Screen, select OPTIONS h SYSTEM PREFERENCES h TAXES h TAX OPTIONS.
2. Select a method in the Tax Method field. 3. Select other options as necessary.
Tax Options
The tax method you choose will determine the available tax options. The following table shows the tax options available for each tax method. A check mark indicates the option is available for that tax method.
Option Description Sales Tax VAT ICM Sales Tax -
Multi
Item Tax Decimals
to Display Enter the number of decimal places used for displaying tax amounts in document item lists.
Receipt Item Price
Decimals with VAT Enter the number of decimal places used for displaying P$T$. Round Ext Tax $
Up tax amount up to the next possible = Round each item’s extended number, based on the number of tax and price decimals used.
Tax Code subtotal calculation
= Calculate VAT for all items in each tax code group. The total T$ for a group is then distributed proportionately among the items in the group.
Eight Tax Codes
compatibility mode to 8, ensuring compatibility when = Limit the number of tax codes using an 8-Series Main station with 7-Series remotes
Tax Area-specific tax codes
= Enable the creation of tax codes that are specific to a tax area. Include 1st tax
when calculating 2nd tax on price.
= Include the first sales tax in the subtotal when calculating a 2nd sales tax.
Round Tax at
Rcpt/SO level the receipt or SO to the next whole = Round the total tax amount on number. Select to always round up, always round down, or have the program decide (normal). Document Total
Taxable Threshold Enter a total document amount under which no sales tax will be applied. Can be entered separately for both tax areas if Sales Tax-Multi is used as tax method.
Note: Value-Added Tax (VAT) and Price Levels
In countries using sales tax, you simply define one price for an item in inventory and set up the
Defining Tax Codes
Each item in inventory is assigned one of the tax codes defined in system preferences (by default the first code in the list). The tax code identifies the item as belonging, for tax purposes, to a particular merchandise category. The three default tax codes are Taxable, Exempt, and Luxury, but you can change these and/or add more.
To define tax codes:
1. From Retail Pro®’s Home Screen, SELECT OPTIONS h SYSTEM PREFERENCES h TAXES h TAX CODES.
2. In the Name column, enter the names of up to 1000 tax codes (examples: clothes, jewelry, food, exempt). Each tax code can be a maximum of 12 characters.
3. Save your changes.
Note: Every tax area must assign a value to all tax codes defined
Even if a tax code is specific to only one tax area, every tax area identified in your system must assign a value for every tax code you define. For example, if one tax area has a clothing tax but your other tax areas do not, they all still need to assign a value to the clothing tax.
Note: Eight Tax Codes Compatibility Mode
Only eight tax codes can be defined in Retail Pro® 7-Series. If your company uses an 8-Series Main station but one or more Remotes are using 7-Series, select the EIGHT TAX CODES COMPATIBILITY MODE
option in System Preferences. Selecting this option restricts the Main station from defining more than eight different tax codes. It also limits each tax code to seven characters.
Preferences: Eight Tax Codes Compatibility Mode
SYSTEM PREFERENCES h TAXES h TAX OPTIONS: EIGHT TAX CODES COMPATIBILITY MODE. Select to
restrict to eight (8) the number of tax codes that can be defined. This ensures compatibility when sending tax information between the 8-Series and 7-Series stations.
To change tax codes in inventory:
Retail Pro® automatically assigns the first tax code defined on the preferences Tax Codes page to each item in inventory. If that code is acceptable, there is no need to do anything. If you wish to change the code, use the following procedure.
1. From Retail Pro®’s Home Screen, select merchandise from the top menu and inventory from the side menu.
2. Make sure the Tax field is added to your inventory page design. (For more information on designing pages, refer to Appendix A. Interface Design.)
3. Select a tax code from the drop-down list in the Tax field. All tax fields defined in preferences are available from the list.
4. Save your changes.
Tax Areas
Tax areas define precisely how the tax will be calculated for merchandise with each tax code. You must either assign one of your tax areas or manually enter an override tax percentage on every SO and receipt.
Notes about Tax Areas
How many tax areas are necessary: If all your sales are made within one tax jurisdiction, you
may need only one tax area. If you sell under several jurisdictions, each with different tax reporting requirements, you will need tax areas for each.
Tax exempt sales: If you make sales to tax-exempt organizations such as schools and churches,
set up a tax-exempt tax area with zero tax for use on those sales. You will then be able to quickly select that tax area at POS and track receipts by tax area on reports. You can also apply the tax code to the customer record for quick reference.
Defining tax VAT rates: The rates for VAT are defined the same as for sales tax by simply
entering the percentage in the first Rate column. Sliding taxes and luxury taxes should not be used with VAT.
Sliding and luxury taxes: Some jurisdictions use special types of sales tax known as sliding taxes
and luxury taxes. A sliding tax applies a different tax rate depending on the item’s selling price. A luxury tax applies the specified tax rate to only the portion of the item's selling price that is above a defined threshold amount.
Item Tax Threshold Condition: Tax rates can optionally change at retail price thresholds or at
quantity thresholds. You can specify in the tax area table the condition to use when defining your rate thresholds.
Editing, copying, and deleting tax areas: Tax areas can be edited, copied, and deleted from the
To define tax areas:
1. From Retail Pro®'s Home Screen, select OPTIONS h SYSTEM PREFERENCES h TAXES h TAX AREAS.
4. Select ADD, enter the Tax Area Name you want to define, and select OK. 5. If the tax is a luxury tax, select the Luxury column.
If rebates are allowed, select the Rebate column.
Select RETAIL in the Condition field to set rates based on retail price level(s). Select QUANTITY to set rates based on quantity sold.
Enter the threshold amount (or quantity) at which the rate is applied in the At/Above field, and the tax rate in the Rate field. The default entry in each field is zero.
1. Select OPTIONS h SYSTEM PREFERENCES h STORES h STORE ASSIGNMENTS. 2. Select a tax area for each of your stores in the Tax Areas section.
3. Save your changes.
Note: Consolidating Items when Applying Quantity-Based Sales Taxes
When a sales tax is subject to a quantity threshold, you must consolidate all occurrences of the item on the receipt for the tax rate to be applied correctly. For example, suppose a tax area is set up so that tax is applied to an item if the quantity is at/above six. Listing the item on the receipt with a quantity of six results in the tax being applied correctly; however, listing the item on the receipt six times with a quantity of one will not apply the tax unless the items are consolidated.
To define tax area-specific tax codes:
In some areas, different tax jurisdictions assign different names to what are essentially the same tax codes: For example, one tax jurisdiction might use the code coffee for all coffee and tea items. Another jurisdiction might use the code tea instead.
1. Select SYSTEM PREFERENCES h TAXES h TAX OPTIONS, and select TAX AREA SPECIFIC TAX CODES.
2. Select the TAXES h TAX CODES page and enter tax codes. The tax codes you enter here should be general terms that you want to be common among all tax areas.
3. Select the TAXES h TAX AREAS page. The tax codes you entered in the previous step are listed in the Tax Items column.
4. Enter new tax codes in the Tax Code field, and then save your changes.
Notes on Specific Types of Tax Rates:
Flat Tax Rates
To specify a flat tax rate that applies to the price of an item: Enter a percentage in the first Rate
column of the appropriate Tax Code row. In the following example, an item that costs 50.00 would cost 52.50 with tax.
(50.00 X 5.00% = 2.50 >> 50.00 + 2.50 = 52.50)
Luxury At/Abov
e
Rate
At/Abo
ve
Rate
At/Abov
e
Rate
0.00 5.00 0.00 0.00 0.00 0.00
Luxury Tax Rates
To specify a luxury tax rate: To specify a luxury tax, select the check box in the Luxury column.
Enter the threshold amount above which the tax applies in the first At/Above column. Then enter the tax percentage in the first Rate column. In the example below, 25,000 is entered in the At/Above column and 8.00 is entered in the Rate column, so the 8% tax is applied on item prices $25,000 and above. A 30,000 dollar item would cost 30,400.00 with tax.
[(30,000 – 25,000 = 5,000) X 8.00% = 400.00 >> 30,000.00 + 400.00 = 30,400.00]
Luxury At/Abov
e
Rate
At/Abo
ve
Rate
At/Abov
e
Rate
5
25,000.0
0
8.00 0.00 0.00 0.00 0.00
Sliding Tax Rates
To specify a sliding tax rate: Enter up to three tax rates, each to apply to a different price range.
Enter the selling price above which the rate applies in the At/Above column, and the percentage in the Rate column. Start by entering the lowest price range in the first column. In the example below, a 50.00 dollar item would cost 55.00 with tax. The rate applied to 50.00 will be 10.00% because 50.00 is above the 25.00 "At/Above" range.
(50.00 X 10.00% = 5.00 >> 50.00 + 5.00 = 55.00)
Luxury At/Abov
e
Rate
At/Above
Rate
At/Above
Rate
0.00 5.00 25.00 10.00 0.00 0.00
Tax Rebates
Rebate: To apply a rebate to a code, select the check box in the Rebate column. You must have
enabled the feature in SYSTEM PREFERENCES h INTERNATIONAL h TAX REBATES. Selecting ALLOW TAX REBATES adds the Rebate column to the Tax Area page. (Refer to Technical Supplement E2.
Multiple Sales Taxes
Retail Pro®'s Sales Tax-Multi method is used when you must apply two sales taxes to sales, such as when:
You must collect, report, and pay sales taxes separately to two taxing authorities
You must collect one tax for the entire amount of a sale, and a second tax for the portion of the sale that exceeds a threshold amount
You must collect two taxes where the first tax is applied to the sale price; and then the second tax is applied to the sale price plus the first tax
Example 1: You are required to collect a federal sales tax and a provincial/state sales tax. Each
tax must be reported and paid to a separate taxing authority. Set up a Federal tax area and a provincial/state tax area, assign both tax areas to your stores. When an item is sold, both taxes will be applied and can be tracked and reported separately.
Example 2: You are required to collect sales tax on food at the local level but not at the state
level. Other items may be taxed at both levels. Define and assign to all food items a unique tax code, define a local tax area with the applicable tax rate and a state tax area with a 0% tax for the food code, assign both tax areas to your stores. When a food item is sold both taxes will be collected, but since it is 0% for the state tax, only the applicable local tax will be charged the customer.
Example 3: You are required to collect normal 8.0% sales tax on the full purchase price of boats
you sell, plus an additional 5.0% tax on the portion of the sales price that exceeds $20,000. Set up two tax areas, one could be called "Sales Tax" that applies to the entire purchase price, and the second called "Affluence Tax" (or similar) for the tax that applies to the amount over $20,000. Set the "At/Above" threshold amount of $20,000 for the second tax area when setting it up. A boat sold for $25,000 would be taxed a total of $2,250. Tax = ($25,000 x .08) + ($5,000 x .05) = $2,250.
Example 4: You sell an item that is subject to regular sales tax and an excise tax that is a
percentage of the sale price, each must be reported and paid to separate taxing authorities. Following the examples above, set up a tax area for each, defining the appropriate tax rates.
To define multiple sales taxes:
1. Select sales tax – multi as your tax method in SYSTEM PREFERENCES h TAXES h TAX OPTIONS. 2. Define a separate tax area for each tax in SYSTEM PREFERENCES h TAXES h TAX AREAS. Using
Example 1 above, you might create a tax area called Federal and one called Provincial.