EventPro User Manual

Define and Adjust Taxes

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Define and Adjust Taxes

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Define and Adjust Taxes

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1.Select Setup | Taxes from EventPro's main menu to open the Taxes screen.
2.Click the New button in the upper right corner of the screen.
3.The Setup Taxes [New] window appears.

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Click to expand/collapse textEffective Date
1.Enter the Effective Date.
2.Assuming that you do not plan to enter details about events prior to the initial setup, you can enter the current date. However, if you do enter events that occurred before you set up EventPro, the date entered here should be a date prior to the earliest event entered in EventPro.
3.If you are entering a new tax that will take effect at a future date, enter the date on which it is scheduled to come into effect. Doing so allows EventPro to correctly calculate the taxes charged on future events.
Click to expand/collapse textTax Definition & Naming
1.Enter the Name of each tax or service charge.
2.Check the box to indicate if there are Taxes Charged on Tax, e.g. taxes you must apply to service charges. If you want to charge a tax or taxes on another tax, select the relevant checkbox(es) to the right, under Taxes Charged on Tax. For example, if you want to charge Tax 1 on Tax 2, select the 1 checkbox to the right of Tax 2.

This concept can get a bit complicated.  Sometimes it is easier to understand when demonstrated with numbers.

Scenario 1

1.Tax 1 Rate = 10%.  Tax 2 Rate = 10%.  Tax 1 is charged on Tax 2. (In the Setup Taxes window, the 1 checkbox to the right of Tax 2 is checked.)
2.Item price = %100.  Total with Taxes = $121
3.Tax Breakdown: Tax 1 = $11. Tax 2 = $10.  To get these numbers, you...
a.Take 10% of $100 as Tax 1, resulting in $10.
b.Then take 10% of $100 as Tax 2, resulting in $10.
c.You then apply Tax 1 on the amount resulting from Tax 2 (10% of $10 is $1) and add it to the amount of Tax 1 to get a total of $11 for the amount charged as Tax 1.

Scenario 2

1.Tax 1 Rate = 10%.  Tax 2 Rate = 20%.  Tax 1 is charged on Tax 2.
2.Item price = $100.
3.Tax 1 = $12 (10% of 100 = 10, plus 10% of 20 from Tax 2 = 2).
4.Tax 2 = $20 (20% of 100).
5.Total plus taxes = $132.00
3.Check the box to indicate whether the tax is Inclusive.
a.If the tax is built into the price, it is Inclusive, and you will check the Inclusive checkbox.
b.If you will add tax to the price, it is not Inclusive and you do not check the Inclusive checkbox.
4.Check the Before Discount checkbox if this tax will be charged on before-discount amounts.
5.In the Abbreviation fields, enter the abbreviated name for the tax, which will appear on EventPro's various screens.
6.In the Invoice Indicator fields, enter a number or letter identifying each tax. Invoice indicators are printed on the event invoice reports to show the taxes you applied to each detail of an event.  Leave these fields blank if you do not want tax indicators to appear on the event maintenance reports or invoices.
Click to expand/collapse textTax Rates/Accounts/Departments
1.Enter a Tax Rate for each tax you named above.  Tax Rates are percentages (e.g. “7” means 7%).
2.From the drop-down lists, select the Account to which the Tax belongs.  Review Setup | General Lookup Tables | Accounts to check how you set up these Accounts.
3.Enter the appropriate Department for each tax.  Check Setup | General Lookup Tables | Department Codes to review how you set up these Department Codes.
4.When you have entered all the information you need, click Save.
5.If you need to adjust taxes for a future tax increase or decrease in your jurisdiction, you may be tempted to go into Taxes Setup and simply edit the existing rates, but do not do this!  It will change the taxes applied to existing events, which have occurred or may still occur before the tax change comes into effect. You must create a new Effective Tax Date and recalculate booked events.
Click to expand/collapse textAdjusting Taxes for Future Increase or Decrease
1.Create a new Effective Tax Date following the instructions above.  EventPro will automatically start applying the new tax rates to events you book after the Effective Date. However, if you have already booked events that will occur after the Effective Date, you will need to recalculate them.
2.To recalculate events, select Utilities | Recalculate Events from EventPro's main menu.
3.Click the Set Filter button in the lower left corner. Set a filter so that the Start Date of the events to be recalculated is the same day at the Effective Tax of the new tax rates.  To review how to set filters, see Introduction: Common Function, Setting a Filter.
4.Click the Recalculate button in the lower right corner of the Recalculate Events window.
5.Choose the All (Filtered) Events recalculation option and click OK.