Different ways to handle sales tax.

People are sometimes confused by the different methods of collecting tax in SP-1.   SP-1 is capable of handling five different tax rates with in our standard (non-Canadian) version.  We then setup the taxable items in the Menu Group file.   As a reminder, Menu Groups are main categories.  For example, Coffee, Tea, Pizza, Sandwich, Beverages etc.

In the menu group, you can distinguish further by having a different taxable rates by the order type.  Each Menu Group can have a different rate for Carry Out, Dine In, Pick up and Delivery.    For example.  You might have 8.5% for carry out coffee and 9.5% for dine in coffee etc.  There is also the ability to set a Menu Group to the 0 tax rate.  That will indicate that this is a non-taxed item.  This is different than a tax exempt sale however.

Tax exempt sales happen when you sell an item that is usually taxed to a  customer that does not pay sales tax.  This is handled by creating a customer record and then setting the taxable switch for that customer to non-taxable.

Not to take this too far but we also have the ability to handle the GST / PST tax rates in Canada.   Lastly, we handle a VAT (Value Added Tax) ability and the ability to add a PIF (public improvement fee).

Any questions?  Just let us know!


January 26th, 2012 by