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Taxes

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The Taxes page enables you to set up taxes within Unleashed. If you have Unleashed in standalone mode (not connected to an accounting provider) you need to make sure that all tax rates are entered manually. If you integrate with an accounting provider, you can create taxes automatically via your configuration page. If there are component taxes, then Unleashed calculates the effective tax rate.

Points to note

  • You can setup a default tax rate at the Product, Supplier and Customer level, to determine the tax rates that apply in Purchase and Sales Orders. 
  • We recommend setting up a tax rate per tax type (e.g. a tax for Sales and another tax for Purchase). 
  • Tax rates in Unleashed apply based on a Tax Hierarchy; whereby the Product's tax will always override the Supplier/Customer tax rate. If no Product tax is set, the Supplier/Customer tax will override the account's default tax rate. For more details, see What is the Tax Hierarchy?
  • Once you add a tax rate, you cannot delete it. However, you can mark it as Obsolete provided it is not assigned to a Product, Supplier or Customer record. If the tax rate is assigned on open transactions or products, customers or suppliers, an error message will display and you cannot obsolete the tax rate. 
  • An Obsolete tax can be re-instated by unticking the Obsolete checkbox.
  • The first two tax rates (No Tax, NONE) for Sales Tax and Purchase Tax are system taxes and cannot be Obsoleted.
  • Unleashed does not support the Margin scheme tax for Value Added Tax (VAT). 

Functional descriptions

Header functions

  • Add: At the top right corner of the Taxes page you'll find a green Add button, which allows you to manually create new tax rates for your Unleashed account. 
  • Default Sales Tax: Use the dropdown menu to select a tax rate that will automatically apply to Sales Orders if no product or customer tax rate is specified. 
  • Default Purchase Tax: Use the dropdown menu to select a tax rate that will automatically apply to Purchase Orders if no product or supplier tax rate is specified. 
  • Tax Name/Code: Use the free text field to filter the tax rates displayed in the Taxes page by their name or code. 
  • Tax Type: Use the dropdown menu to filter the tax rates displayed by their type: All, Sales or Purchase.
  • Obsolete: Use the dropdown menu to filter the tax rates displayed based on their Obsolete status: All, Yes or No.

Grid column descriptions

The following columns will be populated in the Taxes page, based on the header filters applied:

  • Tax Description/Name: Displays the title given to the specific tax rate.
  • Accounting Tax: Displays a dropdown menu to select the accounting tax the tax rate is mapped to. Only available if integrated with an accounting provider (Xero or Quickbooks).
  • Tax Code: Displays the specific tax rate's unique code.
  • Tax Rate: Displays the percentage tax rate.
  • Sales Tax: Shows a checkbox, which if ticked identifies the tax rate as available to Sales transactions (cannot be edited).
  • Purchase Tax: Shows a checkbox, which if ticked identifies the tax rate as available to Purchase transactions (cannot be edited).
  • Obsolete: Tick the Obsolete checkbox to make the tax rate obsolete and no longer available to use. 

Setting up tax rates

To manually create new tax rates in Unleashed, see the below steps:

  1. From the main menu, go to Settings, Systems and select Taxes. 

  2. In the top right of the Taxes page, select Add button (green). 

  3. An Add Tax window will display, where you should advise the new tax's:

    • Tax Description/Name

    • Tax Code
    • Tax rate (as a numerical value)
    • Sales Tax (tick as appropriate)
    • Purchase Tax (tick as appropriate)

      NOTE: Select either Sales Tax or Purchase Tax for each newly added tax.

  4. Click Add. 

Managing taxes with an integrated accounting provider

If you have integrated your Unleashed account with an accounting provider such as Xero or Quickbooks, you will need to map the accounting provider's taxes with your Unleashed taxes. If an Unleashed tax is used in Unleashed, but the tax does not have an Accounting Tax assigned, an "Unmapped tax" error will appear in the record or transaction and it will fail to update or complete. 

Sync taxes from your accounting provider

To ensure your Unleashed taxes are mapped correctly with your accounting provider and will sync successfully, follow the below steps:

  1. From the main menu, go to Integration, Integration and select either Xero or Quickbooks (whichever is integrated).
  2. Go to the Configuration tab, and find the Setup your Xero/Quickbooks Taxes section.

  3. Click the AUTO SYNC TAX CODES button.


  4. Any tax rate that exists in your accounting provider will be imported to Unleashed's Taxes page.

Create taxes with your accounting provider

When integrated with Xero or Quickbooks, any new tax rate that needs to be added to Unleashed must be created in Xero or Quickbooks first, then synced to Unleashed. Taxes created in Unleashed do not export to create the new tax Xero or Quickbooks. 

To manually create new tax rates in Unleashed, see the below steps:

  1. From the main menu, go to Integration, Integration and select either Xero or Quickbooks (whichever is integrated).
  2. Go to the Configuration tab, and find the Setup your Xero/Quickbooks Taxes section.

  3. Select the "Let me manually do this" hyper link, which will direct you to the Taxes page (also found under Settings, System, Taxes on the main menu).

  4. In the top right of the Taxes page, select Add button (green). 

  5. An Add Tax window will display, where you should advise the new tax's:

    • Tax Description/Name

    • Tax Code
    • Tax rate (as a numerical value)
    • Sales Tax (tick as appropriate)
    • Purchase Tax (tick as appropriate)
    • Accounting Tax (use the dropdown to select the matching tax from your accounting provider).

      NOTE: Select either Sales Tax or Purchase Tax for each newly added tax.

  6. Click Add. 

Manage taxes with your accounting provider

Manually update which Unleashed tax rate your accounting provider's tax maps to via the Taxes page in Unleashed. The Xero and Quickbooks integrations map taxes based on the tax type (Sales or Purchase) and rates provided. If you have multiple taxes with the same type and rates you can therefore select which accounting tax applies to your tax in Unleashed. 

  1. From the main menu, go to Settings, Systems and select Taxes. 

  2. Use the Accounting Tax dropdown menu in the Taxes grid to map the accounting provider's tax to your matching Unleashed tax. 
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