Resolving Common Tax Calculation Issues in Current RMS
Tax calculation errors can occur in Current RMS due to incorrect configurations in tax settings or product tax classes. Below is a comprehensive guide to identifying and resolving these issues.
Overview of Common Issues
Incorrect tax calculations may happen due to:
Default product tax classes being assigned instead of specific ones.
System Preferences being incorrectly set to calculate taxes based on delivery origin, billing address, or delivery address.
Failure to update and recalculate settings after adjusting configurations.
Improperly combining tax rates such as city, state, and county taxes.
Correcting Tax Class Assignments
For individual products or opportunity items showing incorrect taxes:
Go to the affected opportunity.
Use the drop-down menu for each product to edit its tax class.
Assign the correct tax rate, such as a combined rate (e.g., city + state rate). Avoid leaving items in the default tax product class, as this often leads to calculation errors.
Configuring System Preferences
If the tax calculation issue persists after updating tax classes, ensure the following settings are configured correctly:
Navigate to System Preferences > Tax Calculations.
Confirm that taxes are calculated based on the desired criteria (e.g., delivery address, billing address, or delivery origin). Updating this setting often resolves discrepancies. For example, to apply sales/rental taxes, ensure the correct address type is selected.
After making any changes, click on the Recalculate option inside the opportunity or quote to update the totals.
Special Cases: Combined Tax Rates
For regions requiring combined tax applications (e.g., city, county, and state taxes):
Determine the total applicable tax rate by combining the individual rates.
Apply the combined rate to relevant products or items. This ensures accurate and consistent tax calculations.
Handling Invoicing Tax Errors
If taxes on invoices are miscalculated:
Open System Setup and verify the tax class for part invoicing.
Update the tax class to "exempt" and test the calculation again.
If "exempt" is not available, create a new tax class specific to your needs.
Frequently Encountered Errors and Resolutions
Tax Column Deducting Instead of Adding Taxes: - Adjust product pricing settings in System Preferences to include or exclude tax.- Recalculate the quote to apply updated settings.
Tax Not Calculated Correctly on Subtotals: - Ensure correct tax classes are assigned to every opportunity item.- Prevent future errors by double-checking tax classes during item addition.
Key Takeaways
Always verify and update tax classes for accurate calculations.
Configure System Preferences properly and use the recalculation feature after making adjustments.
Combine multiple taxes into a single rate for clarity and consistency.
By following these steps, you can resolve most tax calculation issues in Current RMS efficiently and effectively.