Arka Inventory auto populates taxes in transactions like Purchase Order, Sales Order, Invoice etc. 


Arka Inventory determines the tax rate based on three parameters:

  • Product
  • Location from which the goods is being supplied
  • Location to which the goods is being supplied


Setting up Taxes in Arka Inventory is a 3 step process: 


Step 1:  Sync Taxes from QuickBooks Online. 

 

To Sync Taxes from QBO, in the main page, Go To More > Accounting Sync > select Tax > click Sync from AI

 

 

Step 2: Add Tax Location 


A tax location is a place of supply based on which applicability of tax is determined.


To add tax locations Go to Set Up > Objects & Fields > Picklist Value Sets >  click on Place of Supply >  Click New in Values sectionwrite all the Tax Location names (one name in one line, new name should be in the second line)  in the  Box > Save


A country wise list for tax locations to be created is given below the article.



Step 3: Create Tax family and add tax family lines

 

A tax family is a group in which applicable tax is prescribed for supply of goods from one tax location to another tax location.

 

To create a tax family, in the main page (not in Set Ups), Go to More > Tax Family > New > Give Tax family name > Save

 

It is advisable to keep the Tax Family Name indicative of the tax name and tax rate like GST 7%, VAT 15% etc.

 

Then add tax family lines:

 

click New in the tax family lines section.

 

Specify Source and destination locations and the tax applicable.


You need to add tax family lines for every combination of to and from tax locations and the applicable tax.

 

Illustration: 


Under the Australian GST law, there is no tax on exports, GST is applicable only on domestic sales. If you are an Australian company, create following tax locations:

  • Domestic
  • International


Then create tax family named GST 7% and create following tax family lines:


Line 1

  • Source Location: Domestic,
  • Destination Location: Domestic
  • Tax Applicable: Select GST 7% (Tax should have been created or synced from QBO before you can select it here)


Click New and add Line 2

  • Source Location: Domestic,
  • Destination Location: International
  • Tax Applicable: Select GST 0% (Tax should have been created or synced from QBO before you can select it here)


Click New and Line 3

  • Source Location: International,
  • Destination Location: Domestic
  • Tax Applicable: Select GST 0% (Tax should have been created or synced from QBO before you can select it here).



Tax Locations to be created for India:


Andaman and Nicobar Islands

Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chandigarh

Chhattisgarh

Dadra and Nagar Haveli

Daman and Diu

Delhi

Goa

Gujarat

Haryana

Himachal Pradesh

Jammu and Kashmir

Jharkhand

Karnataka

Kerala

Lakshadweep

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Pondicherry

Punjab

Rajasthan

Sikkim

Tamil Nadu

Telangana

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

Other Territory