Thursday 25 October 2012

How Tax works in Dolphin - 2 Assigning a Default Tax to Clients and Suppliers

Following on from our previous post : How Tax works in Dolphin - 1 Setting up Tax types, we will now go through the process of assigning a default tax to a specific client and a specific supplier.

When a new client , or a new supplier is captured if no Tax Code is specified , the new client or supplier will save with a Default Tax assigned to them.

In a standard system , this will be either GST 10%, or VAT 14% ( or the main local tax for your region) .

You can however edit this -  for example to specify a client as GST / VAT exempt.

This is how you edit the tax percentage assigned to a client or supplier.

Changing the Default tax assigned to a client 

Select the Setup Tab, and click on the Client Icon in the Companies Group 

Once the Screen opens, you will see a list of clients and a list of the contacts . 

Once you select a specific client , click on the Edit button at the bottom of the List of Clients : 
This will open an edit screen , which will have a drop down for you to select a different default tax for this client: 

Once you have select the tax , click on the OK button to save the changes, and exit the client screen. 

How to update a Supplier 

Click on the Supplier Icon to the right of the Client icon : 

A list of supplier will open on a tabbed screen , select the Supplier that you wish to modify and click on the Company Details Tab

On the details screen , select the Tax Code from a drop down in the same way as editing a client , and click on the OK button to save the new details. 

What will happen to the documents for a changed client or supplier? 

All new quotes, invoices, and jobs will be associated with the new tax that you have assigned. 

All existing quotes, invoices and jobs will still have the old tax on them. We will not go back and automatically change old quotes based on a tax change on a client or a supplier. 

This is a safety feature, and is designed into the software, so that  if someone accidentally changes the tax on a client or a supplier to an incorrect tax code, you do not have to deal with old documents being updated incorrectly. 

There are ways to get quotes to update if a tax code was originally incorrect on a client, we will cover this scenario in our final post of the series.

Our next post will be How Tax works in Dolphin - 3 Assigning a Default Tax to Stock and Service Items

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