Products: Partial Taxes on Products and Packages
Some operators have the need to only partially tax a particular product. The best way to do so is to split each product into two; a taxable and a non taxable product. The following example demonstrates this process step by step: The sales tax in a certain area is 8.25% however, on each product, the first $25 is tax free. The most commonly sold product in this area is a monthly product with a fee of $49.99.
Step One: Setting up tax free product. Follow the screenshot below to set up your tax free portion of your product. You must give a meaningful code and description, these will appear on your client's invoices. The correct price must be set along with a 0% tax rate as per figure 1-1.
Fig. 1-1: Tax Free Product
Step Two: Adding taxable portion of product.
Next, you will need to add the taxable portion of your product. In this case, you will need to make sure that you choose the suitable tax rate. In this example, the zone has an 8.25% tax rate and a tax mode of "flexible". You will achieve the same result by selecting a default tax mode if your default tax is set to 8.25% under your global WISP settings. Similarly, you can use "fixed" and enter the amount manually. (For more information on setting up tax zones, please click here). See fig. 2-1 for details on setting up this taxable product.
Fig 2-1: Add taxable product
Step Three: The next step involves grouping these two products as a package so that they can be added to a customer's account in one click rather than two. To do this please, follow the below guide:
a) Navigate to the packages tab under the main products tab and click add as per Fig. 3-1.
Fig. 3-1: Add Package 1/2
b) Add your package giving it an appropriate code and description as per fig. 3-2.
Fig. 3-2: Add Package 2/2
c) Select the products you will need to assign to the package and they will appear in a table at the bottom of the screen. Click on the update button. (As per Fig. 3-3)
Fig. 3-3: Assign Products to Packages
Step Four: Assigning Packages to Customers.
You will now need to navigate to your customer's page and to their subscription details under the billing section. Click on modify to take you to the subscription page. (See fig. 4-1)
Fig. 4-1: Modify Subscriptions
Now, simply select your package from the drop down menu and click add package as per Fig. 4-2. You can ignore the products selection on this occasion unless you have any extra products to add.
Fig. 4-2: Add package as subscription.
Your subscriptions will now appear in the table but will not register until you click update subscriptions (as per fig. 4-3).
Fig. 4-3: Update Subscriptions.
Step Five: You will now see the correct price including taxes, appear for your invoice under Invoices --> generate first invoices as seen in fig. 5-1.
Fig. 5-1: Generate First invoices
Step Six: On your customer's invoice, the taxes and charges should now be clearly stated as per Fig. 6-2.
Fig. 6-2: Packages displayed on Invoice
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