The primary source of tax information is tax rules in an accounting system.

DEAR doesn't create new tax rules. It just creates “wrappers" around existing rules from the accounting system. The reason for this is to allow users apply inclusive/exclusive flag for the given tax. Also we use our tax rules to create multi-tier tax schemas (as an example in Canada some provinces require reporting two taxes on invoices).

Xero accounting software allows tax components but doesn't return components via API.

So we have to maintain our own tax components. On the following image item 1 is the name of our rule (wrapper), items 2 is the tax rule from Xero.

 

 


How to use tax rules.

1. All tax rules must be created in Xero / Quickbooks Online. DEAR imports tax rules from Xero / QBO and creates "wrappers" automatically.


Xero:

 


QBO:



 

2. User can modify wrapper by changing Tax Inclusive/Exclusive flag, tax % or create new wrapper.

 


 

3. This tax rule will be used when

  • editing suppliers/customers
  • editing sale/purchase order header
  • editing sale/purchase order line items details and additional charges.

 

4. Tax rule used in sale/purchase order header defines if tax will be inclusive or exclusive for the whole invoice.