Invoice Software - Sales Tax on Labor
Settings for Charging Sales Tax on Labor
In some US States, Sales Tax is charged on Labor eg in Texas whereas in other US States eg Oklahoma no Sales Tax is charged on Labor.
On the Itemized Quote and Invoice screens in Amphis Customer you can specify whether Sales Tax is applied to Labor charges.
You can also set a Preference in Options->Preferences so it will default to your selected value and you won't need to change it each time you create a Quote or Invoice.
In the example above, there is an item for $1000 and a labor charge of $200 which comes to a subtotal of $1200 and there is a 10% discount ($120) which brings the subtotal down to $1080. All the totals, subtotals, taxes etc are calculated for you.
The Apply taxes to Labor checkbox is not ticked so we are not applying Sales Taxes to Labor Charges.
There is no Shipping or Postage and Packing so we can ignore those fields.
We have linked the Invoice to a Job and recorded the Sales person who made the sale but these are both optional fields and you can choose whether or not you want to create Jobs and Sales people in the software.
The Sales Tax is calculated for you. It is based on 10% of the Item price less the discount so it is 10% of $880 which is $88. No Sales Tax is applied to the Labor Charges. (The Sales Tax rate(s) appropriate for your location can be set up in the Options->Setup menu).
Note that if you are in a location where Sales Taxes are applied to Labor Charges, all you need to do is click on the Apply taxes to Labor checkbox, and Sales Taxes will automatically be applied to the Labor Charges and the totals will be automatically re-calculated. You'll be able to store this as a Preference so you won't have to click the checkbox each time you create an Invoice.
The Total is automatically calculated as the Subtotal plus the Sales Tax.
We are recording that the customer has already paid a deposit of $500 and the Balance is automatically calculated as $668.
All this information is automatically created and displayed in an Invoice document using Microsoft Word, based on a template which you can customize to add your logo and business details etc. The Word document can be printed or Emailed to the customer, or a PDF version of the Invoice can be created at the click of a button and Emailed to the customer.
This all applies to Quotes as well as Invoices. Quotes are created in the same way. You can also create an Invoice from a Quote at the click of a button.
Amphis Customer works with any single currency.