Embedded Files
This section refers to creating a tax rate that will apply to your buyers. If you are looking for a way to apply tax to your sellers please visit the Seller Tax section of the guide.
To add a new formula click the New Formula button in the top right corner of the Formulas screen.
The first thing that you'll see on this Formula Details window will be the three descriptive fields.
Formula Code: This field can be edited as you wish. It is the unique identifier for each formula. No two formulas can have the same Formula Code.
Description: This field is used to state how this Buyer Tax looks when you select it from your drop down menus throughout the system.
Settlement Description: This field is what will be stated on the buyer's settlement.
Underneath the descriptive fields you will see two line items. These are the functional parts of the formula.
The first line item refers to any item that is either marked as a Tax Exempt item OR if the buyer of the item is Tax Exempt.
The second line item refers to items that will be charged tax and buyers who will be charged tax.
Since the first line will not be changing functionally the only thing to change is the Description. To do this click the Pencil Icon to the left of the 7% No Tax description.
From the window that appears change the description from 7% to your preferred tax rate. We're changing it to 6.5% for our example. When finished click the Done button.
Once that line item is edited click the Pencil Icon next to the second line item.
Change the Description line to your new tax rate. We're using 6.5% for our example.
Skip the Apply If and Account fields because these fields are already applying the tax correctly.
Click the Pencil Icon next to the Calculation field.
When clicking the Pencil Icon on the calculation field a window will appear to edit the calculation. Using the red X button, remove the incorrect percentage (7% in this example.)
Next click the Values button. This will display several editable fields.
Enter your new percentage into the Percentage field and click the blue Plus button. This will add your percentage to the end of the calculation formula.
When finished click the Done button.
After you've changed the Calculation field your Edit Formula window should appear and reflect your changes.
The taxable amount by default will be the Total Price Plus Buyer Premium.
The Nontaxable Amount will remain at 0
The Exit If field will remain at True
If you do not want to tax your Buyer Premium, click the Pencil Icon next to the Taxable Amount field.
This will display the Edit Calculation window.
Use the red X button to remove the value that states "Total Price Plus Buyer Premium", click the Keywords button followed by the Common button.
Click the word Total Price to add it to your Calculation line.
When finished click the Done button.
When you've finished making changes to your Edit Formula window click the Save button. This will direct you back to the Formula Details window and you will see the line items showing the newly corrected tax rates.
To test your tax rate click the Test Formula button.
This will display the Test Calculation window.
Change the Clerk Status field to Sold.
Change the Tax Exempt and Buyer Tax Exempt fields to False.
Enter a test dollar amount into the Total Price Plus Buyer Premium field.
Click the Test button.
The program will calculate the tax based on your formula and yield results allowing you to confirm that it is working properly.
It is also advised to run a test with the Tax Exempt and Buyer Tax Exempt fields set to true. If either field is set to true, the test results should yield $0.00.
Make sure to save before navigating away from the Formula Details Window using the Save button on the bottom of the screen.
Once the tax rate is finished and operating correctly you can leave the Formulas section of the software and enter the details of your auction.
Create a Buyer's Premium
Enter Your Auction Details
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