This article explains how to set up the tax code and tax rate when exporting invoices, expenses and purchases.
Under the Export Settings tab of the Configuration screen of the integration application, we will find the following options.
Note: this screen layout is found in the edition for MYOB Live, (2019+), however the old version for MYOB v19 has similar options.
Tax codes for transactions
This is where we will map the 2 distinct tax codes that we will use in our exported transactions.
- MYOB GST Tax Code: Enter the tax code you use in MYOB for taxable items. For example, GST.
- GST Tax Rate: Enter the tax rate that applies to this code. Example: 10%. It's important you enter this value as the integration will calculate taxes based on this value.
- MYOB Tax Exempt Code: Enter the tax code you use in MYOB for tax free items. For example FRE or N-T.
Transactions coming from Connectwise do not come with information on the tax code used or the tax rate, but it does come with an indication on whether or not an amount is taxable. We use these settings to apply the correct tax code and rate used in MYOB.
Tax codes for new items
This section applies if we are exporting Item Sales or Item Purchases.
When a new product is being exported into MYOB, these will be the default tax codes when bought and when sold that will be stored in the item.
In this section you can control how transaction detail lines are taxed. These options can control whether an amount is taxed or not, and how the tax is mean to be calculated before exporting to MYOB.
A setting is found for each transaction type:
There is currently no configurable option. Invoice detail lines come with a mark indicating if the item is taxed. The amounts of all taxed items are treated as exclusive of tax, meaning that the tax is applied on top of them.
When expenses are reported in Connectwise, only an amount is received, but no information is available to indicate whether or not that amount is taxable. With these options we can control that.
Available options are:
- All amounts are tax free: Use this option is none of the amounts are taxed. The MYOB Tax Exempt Code will be used for all amounts exported to MYOB.
- Tax all amounts - Amounts in CW are tax exclusive: Use this option to make all expense amounts taxed in MYOB and if the amounts reported in CW are tax exclusive. Example: if the expense amount is of $100 and the tax rate is of 10%, then with this option the exported amount will be of $100 excluding tax, $10 of tax, and a total amount of $110.
- Tax all amounts - Amounts in CW are tax inclusive: Use this option to make all expense amounts taxed in MYOB and if the amounts reported in CW are tax inclusive. Example: if the expense amount is of $100 and the tax rate is of 10%, then with this option the exported amount will be of $90.91 excluding tax, $9.09 of tax, and a total amount of $100.
- Tax items and freight according to tax options in the P.O.:
Use this option to apply taxes exactly the way they are set up in the original purchase order in Connectwise. That is:
-Products are taxed only if the option to Tax Purchase Order is enabled. See image below. This will affect taxable products only.
-The purchase Freight is taxable only if the option to Tax P.O. Freight is enabled. See image below.
Tax all taxable items regardless of tax options in the P.O. Amounts are tax exclusive:
Use this option to disregard the "Tax Purchase Order" and "Tax PO Freight" options on the purchase order see in the screenshot above.
When this option is selected, we will always tax products, as long as they are defined as Taxable in the Products module.
Also, an option becomes available to indicate whether or not freight is meant to be taxed.
In both cases, whenever something is taxed, the amount that comes from Connectwise is treated as tax exclusive and tax will be added on top of the original amount.
Tax all taxable items regardless of tax options in the P.O. Amounts are tax inclusive:
This works similar to the option above, only taxed amounts are considered tax inclusive.