In this video, I explain how to set distinct tax rates for parts and labor accounts, specifically for warranty companies.
Setting Distinct Tax Rates for Warranty Companies
Key Steps
1. Verify Company Status as Warranty Company 0:00
Ensure the company is classified as a warranty company.
2. Enable Warranty Company Checkbox 0:15
Navigate to the customer profile.
Check the 'Warranty Company' checkbox to classify them as a warranty company.
3. Set Labor and Parts Tax Percentages 0:34
Locate the fields for Labor Tax Percentage and Parts Tax Percentage.
Input the desired tax rates (e.g., 20% for both labor and parts).
4. Save Changes 0:44
Click 'Save Changes' to apply the tax rates to the warranty company.
5. Create a Service Request 0:56
Initiate a service request to apply the tax rates.
6. Edit Service Request 1:05
Click the edit field in the service request.
Choose between 'labor and parts' or 'limited parts' under warranty.
7. Select Warranty Company 1:19
From the drop-down menu, select the newly created warranty company (C&M Parts).
Click 'Apply' and then 'Save'.
8. Add Miscellaneous Labor Item 1:32
Add a miscellaneous labor item to the service request.
Click 'Done' to finalize the addition.
9. Review Effective Tax Rate 1:42
Check the change price icon to view the effective tax rate applied (20% in this case).
Cautionary Notes
Ensure that the correct customer is selected to avoid misclassification.
Double-check tax percentages before saving to prevent errors in billing.
Tips for Efficiency
Use templates for frequently used warranty companies to speed up the process.
Regularly review and update tax rates to reflect any changes in tax legislation.