Adding Taxes, Discounts, or Fees to Sales or Purchase Orders

This video shows the process of adding taxes, discounts, or fees to sales or purchase orders using our software. These flow through the invoicing and reporting modules, but they are edited on the sales order.

Adding Taxes, Discounts, or Fees to Sales or Purchase Orders


See the video below for instruction.  The video has a sale order as an example, the process to add taxes, discount, or fees is exactly the same for a purchase order.

Adding Taxes, Discounts, or Fees to Sales or Purchase Orders

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Video Transcription

Hello, my name is Chris. I’m one of the partners in Finale Inventory. And in this video I’m gonna show you editing taxes, discounts and fees on sales orders. These taxes, discounts and fees flow through to all the invoicing and business reporting modules as well, but they’re edited on the sales order. So first we’ve got a sales order here with five items. I’m going to… The total is $1000 and we don’t have any fees or discounts added. So I’m gonna to click this blue link to go to the screen where these are edited. You’ll note it comes up instantaneously. For the tax, the taxes are pre-configured, so I will select a sales tax based on the ones that I’ve set up. These are all done on, in the Application Settings area and they’re done for each company, gets set up separately, so you just, I’ll show at the end of the video how that’s gonna be configured. I then can add a discounter fee. We’ll add two discounter fee lines. I can just manually enter a fee. So if this was just a feel-good or how about this is a rebate of some sort, a spot rebate, and we’re just gonna give them $125 just on the spot we agreed to. Or alternatively, I can select an existing fee that I’d set up, say, for example, a credit fee. We always charge 2.5% for credit. That gets calculated out. I’ll add another fee here. An example of a non-taxable fee, we’ll add shipping. Shipping is often not taxable.

This is set up as a preset so that they can all be grouped and reported together reliably, but it gets entered, in this case it’s been set up, it gets entered in each order. So our shipping fee is 123.45, and that fee, as you’ll note, is not taxable. The other ones are taxable. When we go back to the sales order screen, now, you’ll see at the bottom of the screen here each of the fees. We’ve got my spot rebate that I just entered, my credit fee. I had forgotten, the spot rebate fee needs to be negative. Well that’s easy to change. Click here, click here. A negative number means it’s a discount, positive number means it’s a fee. So let me go back. That was quickly changed. Okay. Much better.

Now we get $125 off for the rebate, my credit fee is $25.48, for a taxable subtotal of $919.50. Apply my sales tax, shipping is after sales tax for the grand total. And if I clear one of these items out, you’ll note all of the totals and percentage-based amounts, the tax and the credit fee will update as I, immediately. So I just click on that, I zero that out, hit return, you know, everything has now updated. All right. And that appears on, the sales reference has been saved, and then we’ll print the sales order. And there it is. So you see an entire, you see the entire sales order, just zoom in and there’s our subtotals. Comes down to here. I got my rebate, my credit fee, the taxable subtotal line, sales tax, calculated sales tax, and the shipping and then the total amount, just over $1000 for this customer.

So I had mentioned that the fees are set up in Application Settings so they can have presets that are configured. You can easily get there from here. Just click on this link which is on that screen. That directly takes me into the configuration page where they’re configured. I can either rename a fee, so this was a brokerage fee, let’s just say we wanna name the broker. This is, you know, LLT Broker fee. And suppose we separately wanna add another fee, I just pick a blank line and I type SPDY Broker and then those are up and let’s suppose they’re both non-taxable. So it’s very easy to set them up. I’m just typing into this table and adding them. I hit save now, I hit the back button, and immediately that fee is now available to be applied. You can, of course, use user access control options in Finale to prevent some users, like, to prevent users from modifying the preset fees, and it’s one of the options in the user access control. For taxes, it’s similar. Click on here, we get our tax configuration.

Tax in Finale is pretty powerful. You can create individual tax items as well as aggregate or group tax items. And so what that’s for is if you’re in a situation where you’re collecting tax from multiple levels of government, for example, city, county and state ,and need to keep that information separated while still showing a single line on the invoice. You can create an aggregate tax item, for example, Santa Clara’s on a sales tax, which is combination of my Santa Clara county tax and my California sales tax.

Those two refer to the California sales tax and the Santa Clara county sales tax here. So on the invoice it’s gonna come up as 6.875% but I’m going to be tracking each of those amounts separately so that when it comes time to pay my taxes I can pay the correct amount to the correct jurisdictions. And then there’s a further area at the bottom here for the tax authority, so this represents individual jurisdictions. For example, if you have multiple different taxes, tax items for different situations that you want to group. And you can report on each of the combinations of authorities and tax items for your tax reporting. So, but that’s the topic for another video, kind of the depths of that, or you can give us a call and we’ll help you help you set it up. I’m gonna come back to this screen, where we are. And that wraps up this video of adding taxes, discounts, or fees to sales or purchase orders.