Tax Management In Orderry

Introducing another update that we announced in the previous article — taxes. 

Previously, tax management in Orderry was presented in the form of a checkbox "VAT payer" and variables in the document templates. Now you can:

  • Enter all tax rates that apply to your company for goods, works, and services into Orderry;
  • Set up the application of one or more tax rates (e.g., VAT and excise tax) separately in order, sales, and posting documents;
  • See the amounts of taxes when creating, viewing, and editing documents.

With these features, you will be able to work in a valid legal field, see correct financial accounting and build up financial reports correctly in the future.

In the coming updates, you will also be able to set different tax rates for individual goods, services, and their categories.

Where To Get Started

On the Settings > General page, you will see the "Taxes" block, where you should activate the "Use tax system" checkbox. If you have previously enabled the "VAT Payer" checkbox, you don't need to do anything.
 
Where To Get Started

When the "Use tax system" checkbox is enabled, the Settings > Taxes page becomes available. Here you can create all the tax rates, set how they apply, and specify what to do with open documents if the company's tax rules have changed.

Creating Taxes

You can create as many tax rates as you need. For example, it can be VAT 20% on sales of goods and services, VAT 10% on goods from suppliers, etc.

Note that there are now two types of taxes:

  • Included Tax is calculated from the cost of goods or services. It does not affect the final cost of the order for the customer, but affects the company's margin;
  • Imposed Tax is paid by the client on top of the cost of the service or product.

 
Creating Taxes
 

Step-by-step instructions for creating, editing, and deleting taxes with a detailed description of the meaning of each you’ll find here.

Applying Taxes

In the "General Rules" block, you can set which taxes apply to orders and sales, and which apply to postings. And if there are several tax rates for the same type of documents, you can also set the order in which they are applied, where the first tax in the list has the highest priority and the last has the lowest.
 
Applying Taxes
 

It is important to set the correct priority of taxes to correctly calculate the amount of each tax.
 
set the correct priority of taxes to correctly calculate
 

Recalculating Taxes in Open Documents

You can't rule out the fact that while you're working on an open document, the tax rules for the company may change. For example, you created a draft of posting when the VAT rate was 10%, and the next time you open the draft, the company's tax rules already show a 20% rate. Therefore, in the Settings block, you can specify what Orderry should do in such cases:
 
Recalculating Taxes in Open Documents
 

If you select the first option, you will see this information block in the Posting Draft or when working with an open order:
 
see this information block in the Posting Draft
 

And, of course, with this update, there are new access rights in the Taxes group of the Settings > Employees page:
 
new access rights in the Taxes group
 

A full description of what each right is responsible for you can find here.

Coming Next

The current version of taxes is the first step towards universal and versatile tax management in Orderry. In the next updates, you'll be able to divide services into categories and set different tax rates for them. This will be useful, for example, when working with individuals and legal entities.

In addition, you will be able to see how much tax your company has paid on each order and their total amount.

And, of course, we look forward to your feedback, because that's what helps us make Orderry better.

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