The way tax is treated on Purchase Orders and Transfers depends on whether your setup is Tax-Inclusive or Tax-Exclusive.

• Tax-Inclusive: This refers to systems such as VAT in the UK, where the Price of the item in the Point of Sale includes the tax charged to the customer.
• Tax-Exclusive: This refers to systems such as Sales Tax in the USA, where taxable amounts are added on top of the Price of the item when sold.

If you are unsure of your current settings, navigate to Setup > Configuration in the Cloud POS Back Office menu. Scroll down to the ‘Tax Setup’ section, and you will see here if you are set as ‘Tax Inclusive’ or ‘Excluding Tax’. (This is set for you by Citrus-Lime when your Cloud POS account is first created.)

Tax-Inclusive Retailers

Purchase Orders

For Tax-Inclusive Cloud POS groups, items on Purchase Orders will use the tax rate set in the ‘Suppliers' table of the item record. This is the case even if this isn't the primary supplier of the item.

Here is an example. On this item record, we can look at the ‘Suppliers’ table and see that the tax set for the supplier ‘Citrus-Lime’ is ‘T1 - VAT 20%’:

Therefore, when this item is added to a Citrus-Lime Purchase Order, the tax rate on this item is ‘T1 - VAT 20%’:

If you need to change this on a particular Purchase Order, you can click into this ‘Tax Rate’ cell of the table and select a new value. Make sure you then click Save Changes at the bottom of the Purchase Order screen.

Transfers

For Tax-Inclusive Cloud POS groups, items on Transfers will use the tax rate set on the item record.

Here is an example. On this item record, we can see the Tax Rate of the item is set as ‘T0 - Zero Rated’:

Therefore, when this item is added to a Transfer, the tax is zero rated. You do not see this on the individual Transfer lines, but it can be seen from within the Transfer Header:

Please note this is the case for a Transfer to Supplier, a Transfer Out of System and a Store-to-Store Transfer.

Tax-Exclusive Retailers

Purchase Orders

For Tax-Exclusive Cloud POS groups, items on Purchase Orders will use the tax rate set in the ‘Suppliers' table of the item record. This is the case even if this isn't the primary supplier of the item.

Here is an example. On this item record, we can look at the ‘Suppliers’ table and see that the tax set for the supplier ‘Citrus-Lime’ is ‘No Tax':

Therefore, when this item is added to a Citrus-Lime Purchase Order, the tax rate on this item is 'No Tax’:

If you need to change this on a particular Purchase Order, you can click into this ‘Tax Rate’ cell of the table and select a new value. Make sure you then click Save Changes at the bottom of the Purchase Order screen.

Transfers

For Tax-Exclusive Cloud POS groups, tax will not be charged when items are added to Transfers. Please note this is the case for a Transfer to Supplier, a Transfer Out of System and a Store-to-Store Transfer.

Here is an example. On this item record, we can see that the item is subject to the ‘Store Default’ tax rate when sold. Clicking ‘View Store Taxes’ shows us that this would mean tax of 6.25% in the Boston Store and 9.1% in the Tucson Store. (Please note these rates are purely for demonstration purposes.)

However, when the item is added to a Transfer, no tax is added. You do not see this on the individual Transfer lines, but it can be seen from within the Transfer Header: