For taxable entities, AMSHub offers the ability to have sales tax automatically added to the cost of individual items added to inventory. Enabling this feature will ensure your case costing, reporting and analytics reflect the true cost of materials including sales tax. You can exclude individual items from having sales tax applied, but if you turn sales tax on it will automatically apply to all items by default. You can edit any individual item’s properties to exclude it from taxes.
When sales tax is enabled by entering a value into your Facility Settings that’s greater than 0, AMSHub will prompt you to choose whether you want to update item costs to include sales tax going forward, or if you’d like to update all items, including all old, existing, used, etc. If you choose “New Orders Only” all future item costs will include sales tax throughout the entire AMSHub platform. If you choose “New and Old Orders”, the system will go back through the entire history of your facility and update all item prices since you started to include sales tax on item costs.
Let’s look at an example: you have an item that costs $100. You set your sales tax to 7%. Throughout the entire AMSHub system, the item cost will appear as $107. If you chose to only have sales tax apply to new orders, and you’ve had these items in your inventory in the past, you would have some that appear as $100 and all new ones would appear as $107.
To implement sales tax you must have a role that is able to modify facility settings. Go to your user icon at the top menu, click to expand the sub-menu and select Facility Settings. You’ll see the Sales Tax % field where you can input your sales tax rate (please verify your tax rate prior to entering this figure). After adding or changing this value you will see some information appear regarding sales tax and two options on how to apply your sales tax: New Orders or New and Old Orders. Selecting new orders only makes sense if you’ve been using sales tax and are simply updating your tax rate to reflect a change. If you’ve never used the sales tax feature and want AMSHub to apply sales tax retroactively to all of your old items and their respective reports and analyses, select old and new orders.