Auto-selection of Taxes in ApprovalMax for Xero

Auto-selection of Taxes in ApprovalMax for Xero

In Xero, you can set default Taxes for:

  1. Contacts
  2. Inventory Items       
  3. Accounts in the chart of Accounts    

ApprovalMax follows the same logic as Xero and applies your default Taxes for Bills, Invoices and AP/AR Credit Notes in the following order of priority:

1. The default Tax rate for the Contact used in a transaction
2. The default Tax rate for the Inventory Item used in a transaction line (if an Inventory Item is being used)
3. The default Tax rate for the Account code used in a transaction line

For Purchase Orders* only, the Inventory Item's Tax rate is used in preference to the Contact's Tax rate.

Depending on the settings and the priority of what's added to a request, different options can be achieved:

Case Purchase Order Bill
Contact and Item have Account and Tax specified First - Inventory Item is added
Second - Contact is added		 Item’s Tax rate Item’s Tax rate
First - Contact is added
Second - Item is added 		 Item’s Tax rate* Contact’s Tax rate 
Contact has Account and Tax specified, Item doesn’t have either
 First - Inventory Item is added
Second - Contact is added		 Contact’s Tax rate  Contact’s Tax rate 
First - Contact is added
Second - Item is added 		 Contact’s Tax rate  Contact’s Tax rate 
Contact doesn’t have records, Item does First - Inventory Item is added
Second - Contact is added		 Item’s Tax rate Item’s Tax rate
First - Contact is added
Second - Item is added 		 Item’s Tax rate Item’s Tax rate




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