Taxation in Current RMS is calculated by using tax rules that apply tax rates based on tax classes.
Categories or classifications that you can set against your products and organizations.
A percentage amount of tax that you’d like to apply in a particular country, state, or zipcode range.
A combination of both tax classes and rates that Current uses to calculate the appropriate tax charge amount.
In this guide, we’ll look at setting up a tax rule that applies a single state tax. We’ll use the example of Florida where there’s a general 6% sales tax at time of writing. Keep in mind this is just for guidance – consult tax guidance for your state or region before proceeding.
Create a tax rate
Head to System setup > Tax rates. Hit the green add tax rate button at the top.
Enter a name for your tax rate, choose the country and state where it applies, then enter the percentage. In our example, we’ve put the name as “Florida Sales Tax”, country as “United States”, state as “Florida”, and rate as 6.00.
When you’re done, click the blue Create Tax Rate button.
Create a tax rule
Once you’ve created a tax rate, go to System setup > Tax rules. Click the green add a new tax rule button at the top.
Give your tax rate a name and tick all of the tax class boxes and the tax rule you just created. This tells Current RMS to apply your tax rule to all products and organizations. We’ve named our example “Sales Tax”.
You can safely ignore the priority and sort order boxes – these are used in cases of multiple tax rates where you might need to compound rates.
When you’re done, click the blue Create Tax Rule button.
Apply to opportunities
Tax will automatically be applied to new opportunities where the address matches your tax rule.
The address used for tax calculation purposes is set in System Preferences. You can choose from:
The organization on the opportunity’s billing address.
The venue or delivery address on the opportunity.
The address of the store set against the opportunity.
Current RMS won’t retrospectively update existing opportunities – in the case of a tax rate change in your region that takes effect after a particular date, you wouldn’t want to update historic orders. To force a re-calculation of tax on an opportunity, find the opportunity and click Recalculate under Actions.