Configure multiple tax types and tax rates

Owned by Rose Eliff (Unlicensed)
Last updated: Jul 04, 2017
4 min read

Summary

Tax types are created to apply taxes to taxable menu items. Each enabled tax type has a tax rate.

Example: 

  • Tax type = sales tax
  • Tax rate = 8.75%

By default, each taxable menu item is automatically configured with a sales tax. Additional tax types can be configured for a site and applied to any menu item as needed, e.g., liquor tax, city tax, etc. 

Each tax type is configured with a tax rate. 

Configuration

Configure a tax type

Pre-condition: The current user must have ECM permission to create/edit adjustments. 

Configuration is done in four areas of ECM: 

  1. Financial - Create tax types (account level) 
  2. Site - Enable tax types; establish tax rates (site level) 
  3. Menus - Enable tax types per menu 
  4. Menu items - Enable taxes for specific menu items; set any tax exemptions (account level) 

FINANCIAL - CREATE TAX TYPES (ACCOUNT LEVEL)

  • In the primary navigation, go to Financial > Tax Types
    • Note: Sales tax is the default tax type. The name cannot be edited. 

Add Tax Type

  • Click Add Tax Type
  • A new blank entry will be created. Enter the name of the new tax type
  • Click Save Changes to save or Cancel Changes to cancel
  • External code - leave blank unless needed for third-party integration 

Edit Tax Type

  • Click the edit icon (pencil)
  • Edit the name or external code in the pop-up window

  • Alternate: Click in the name field or external code and field to edit

  • Click Save Changes to save or Cancel Changes to cancel 

SITE - ENABLE TAX TYPES; ESTABLISH TAX RATES (SITE LEVEL)

  • Select a site

  • Select Tax Rates
  • Checkmark the taxes to be enabled for the selected site 
  • Uncheck to disable a tax

  • To enter or edit a tax rate %, click in the field and enter changes
  • To enter or edit a display name, click in the field and enter changes 

  • Save, Cancel or Apply the changes (Apply will save the changes and remain on the page; Save will save the changes and close the page) 

MENUS

  • Go to Products > menus
  • Select a menu (pencil icon) 
  • Select the taxes applicable to the selected menu and Save

MENU ITEMS - ENABLE TAXES FOR SPECIFIC MENU ITEMS (ACCOUNT LEVEL)

  • Go to Products > Menu items
  • Select a menu item (pencil icon)

  • Select Taxes tab
  • Checkmark the taxes to be enabled for the selected menu item
  • If a menu item is to be taxed for takeout, checkmark the box Taxed for Takeout? 

  • Tax Exemptions
  • Taxes that were enabled for a site can be exempted for a menu item at the site level
    • Select a site from the drop-down menu
    • Select a tax to be exempted for this menu item at the selected site

Combos

  • Combo types that are configured to have a single combo price (prevailing single, reduced single) will display a Taxes tab, which will display the same taxes page as above.  
  • Combo types that are configured to have a discount to each item in the combo (prevailing discount, reduced discount) will not display a Taxes tab, as their taxes are inherited from the child menu items and applied to the parent.

  • Save, Cancel or Apply the changes (Apply will save the changes and remain on the page; Save will save the changes and close the page) 

Operation 

  • Order a taxable menu item 
  • The Payment screen will display the taxes that apply to the menu item 

 

Receipt example:

Tax Types - Archive

Tax Rates - archive

Multiple Tax Rates displayed on the On Screen Check

Example of multiple taxes displayed separately on a receipt