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Tax rates
Martin Le Rossignol avatar
Written by Martin Le Rossignol
Updated over a week ago

View and manage the entity tax rates to be used when creating journals, including tax rates from connected ledgers. Set custom tax rates that will be synced back to your connected ledger.

The tax rates can be found in the settings of your Xero-connected entity.

Tip

You can create new tax rates within the program but it is considered best practice to use Xero as the single source of truth and manage all your tax rates from there

Important

You can only use the tax rates for ledger-connected entities and workpapers.

Manage tax rates

You can manage the tax rates when you go into the entity settings.

You can:

  1. View current tax rates

  2. Edit the order, using the drag-and-drop

  3. Add rates

  4. Edit details (name, account class, Xero tax report, and tax percentage)

  5. Delete rates

  6. Refresh rates

When creating a new tax rate, the name and rate have to be a unique combination. The order that is given to the tax rates is how they will then appear in the drop-down when applying a tax rate to a journal.

๐Ÿ’ก Note

You cannot edit or delete tax rates that have been pushed to Xero or that have been created from Xero.

Tip
When adding a new tax rate in Xero make sure to refresh the tax rates within Cimplico. The order will remain the same with new tax rates being added to the bottom of the list.

Using tax rates

When you go to the entity settings hit the "Refresh" button to pull the latest tax rates from your connected ledger system.

After creating a new journal:

  1. Specify if the tax rate is inclusive or exclusive of the journal amount

  2. Fill out the journal information

  3. Specify the correct tax rate (only shows what is available for the account class)

  4. Save and post (if you have Reviewer or Approver rights) the journal to the ledger

At the bottom of the journal, you can see the breakdown of subtotal and taxes.

๐Ÿ’ก Note

If a new tax rate is created within the application and posted in a journal it will be pushed to Xero as a custom tax rate.

If the journal fails to post because of a mismatch of tax rate types then the journal will be kept as a draft and can be edited for future posting.

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