Automatic Tax Rate Hierarchy

When you enter a transaction, the tax rate is determined by a hierarchical structure. The user can accept this setting, or override it.

This diagram depicts the hierarchy for automatically selecting a transaction’s tax rate:

For example, when invoicing a debtor, the tax rate is selected using this hierarchy:

1. Account - the tax rate of the Debtor account is used if explicitly specified on the Debtor account.

2. Stock - if no tax rate has been set on the Debtor account, then the rate applicable to the stock item is selected if explicitly set on the stock item.

3. Default Rate - if no tax rate has been set on the account or the stock item, then the default Debtors rate from the MYOB Exo Business Configurator is used.

In the case of a Creditor’s Invoice that uses General Ledger (GL) codes instead of stock items, if the Creditor’s account default rate is not set, the rate from the GL account is used. If a rate is not set on the GL account, the default creditor tax rate in Exo Business Configurator is used.

Once the tax rate is chosen, you can override this rate and set the tax rate number and tax rate using the periscope function.

Overriding Function

Use these options to override the automatically-selected transaction tax rate and amounts:

• Line periscope – to view line detail, and to set the tax rate and amount.

• Tax Toggle – to change amount to inclusive or exclusive of tax.

• Tax Rates button – to compare calculated tax against default hierarchical tax rate.