Including Tax on Purchase Orders?

LumenzLumenz Member Posts: 2
edited January 2018 in Products & Inventory
I'm having trouble getting my purchase orders to display and include tax in the total. Is there a solution to this that I'm missing? It does display a sub-total and a total, but both are the same number.

4 comments

  • thebrakeroomthebrakeroom Member Posts: 1
    I literally just solved this problem today.

    I'm making assumptions based on my scenario, but maybe you'll be able to extrapolate my details to use with your system.

    First make sure that every item is set to 'taxable'. This will make sure that lightspeed knows to charge tax for it, and log that tax was paid. Seems obvious.

    Second, go to SHOGO and go to your accounting settings. Under the PO settings, map 'Other' to GST/HST Payable.

    Third, from now on, add the total tax paid to the "Other %" option.

    Done!

    I wish I started this from day one.
  • LumenzLumenz Member Posts: 2
    edited January 2018

    I literally just solved this problem today.

    I'm making assumptions based on my scenario, but maybe you'll be able to extrapolate my details to use with your system.

    First make sure that every item is set to 'taxable'. This will make sure that lightspeed knows to charge tax for it, and log that tax was paid. Seems obvious.

    Second, go to SHOGO and go to your accounting settings. Under the PO settings, map 'Other' to GST/HST Payable.

    Third, from now on, add the total tax paid to the "Other %" option.

    Done!

    I wish I started this from day one.

    Thanks for the reply! I don't have SHOGO, but I tried adding the tax using the "Other %" option. Strangely, it doesn't show up on the purchase order. SubTotal and Total remain the same when printing or exporting the order. It does all display correctly when I'm editing the purchase order. I'm not sure if maybe it's an issue with the template that I'm not seeing...
  • Gabriel GivensGabriel Givens Moderator, Lightspeed Staff Posts: 19 moderator
    Lumenz said:

    I literally just solved this problem today.

    I'm making assumptions based on my scenario, but maybe you'll be able to extrapolate my details to use with your system.

    First make sure that every item is set to 'taxable'. This will make sure that lightspeed knows to charge tax for it, and log that tax was paid. Seems obvious.

    Second, go to SHOGO and go to your accounting settings. Under the PO settings, map 'Other' to GST/HST Payable.

    Third, from now on, add the total tax paid to the "Other %" option.

    Done!

    I wish I started this from day one.

    Thanks for the reply! I don't have SHOGO, but I tried adding the tax using the "Other %" option. Strangely, it doesn't show up on the purchase order. SubTotal and Total remain the same when printing or exporting the order. It does all display correctly when I'm editing the purchase order. I'm not sure if maybe it's an issue with the template that I'm not seeing...
    This solution suggested by "thebrakeroom" is a perfect solution for most cases. However, if you are using Shogo with Xero, this mapping won't work. You should instead map to a tax holding account you create yourself, then manually debit and credit the funds from this holding account to your GST/PST/VAT Payable account (this is more applicable in Europe really where Xero is more prevalent.)

    But, otherwise, yes, this suggestion is perfect!
    Gabriel Givens
    Senior Frontline Support
    Lightspeed HQ
  • Gabriel GivensGabriel Givens Moderator, Lightspeed Staff Posts: 19 moderator
    Lumenz said:

    I literally just solved this problem today.

    I'm making assumptions based on my scenario, but maybe you'll be able to extrapolate my details to use with your system.

    First make sure that every item is set to 'taxable'. This will make sure that lightspeed knows to charge tax for it, and log that tax was paid. Seems obvious.

    Second, go to SHOGO and go to your accounting settings. Under the PO settings, map 'Other' to GST/HST Payable.

    Third, from now on, add the total tax paid to the "Other %" option.

    Done!

    I wish I started this from day one.

    Thanks for the reply! I don't have SHOGO, but I tried adding the tax using the "Other %" option. Strangely, it doesn't show up on the purchase order. SubTotal and Total remain the same when printing or exporting the order. It does all display correctly when I'm editing the purchase order. I'm not sure if maybe it's an issue with the template that I'm not seeing...
    Also I'll add that at this time, Purchase Orders aren't designed to accommodate sales tax for now. So tax charges won't show in purchase orders in Lightspeed innately. You can use the OTHER field under COSTS to specify tax if you wish. This also only works if your products are tax exclusive. So if your vendor is able to, I recommend that you request invoices from your vendor in a Tax-Exclusive format to ensure you can see before tax and after tax costs and totals. If you vendor will only issue invoices as tax inclusive and won't accomidate you, then you'll have to manually adjust your invoice's totals and figure out the base price plus tax by hand, then put those entries into the PO under Cost.

    An example of this:

    I buy an item from a vendor for 10.00 and this includes 10% GST. If I wanted to find out what the total tax was, you would use the formula listed here: https://www.accountingcoach.com/blog/calculate-sales-tax (Warning, this is a 3rd party site, and we are ultimately not responsible for it's content and you visit it at your own risk, please consult your CPA/Accountant if you require more personalized advice for your situation)
    Gabriel Givens
    Senior Frontline Support
    Lightspeed HQ
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