In Helm CONNECT, taxes are a separate billable item applied to charges on an invoice, and they must be defined separately from your contracts and tariffs. In Version 1.12, we added a new Tax Types tab to Invoicing, on the Setup menu, to allow you to manage your tax types.
How to create a new tax type
To create a new tax type
- From the Setup menu, select Invoicing.
- Click the Tax Types tab.
- Click the New Tax Type button (Figure 1).
- In the Name field, type a name for the tax type (Figure 2).
- Determine whether you want an external system to calculate the tax or Helm CONNECT to handle the calculation.
- External System If you select the Uses External System for Calculation check box, the bottom half of the page will be left blank and Helm CONNECT will not perform any tax calculations for this tax type. In this case, enter the appropriate values in the External System Code and Accounting Code fields. This will allow the system to provide these values when billing information is exported for use by an external accounting system (Figure 2).
- Helm CONNECT If you leave the Uses External System for Calculation check box clear, Helm CONNECT will calculate the tax amounts based on the conditions defined in the bottom half of the window (Figure 3).
- If Helm CONNECT is performing calculations for this tax type, define the new tax type rules as required. See the What you need to know when creating tax type rules section below for more information.
Note Tax types can be applied as conditions to individual rules within tariffs and contracts or to the entire tariff or contract. Helm CONNECT will apply the tax type to any new rule but will not apply it to existing rules. You must manually apply tax types to existing rules.
- Click the Save Changes button.
Figure 1. Tax Type tab list view
Figure 2. Creating a tax type when an external system is used for tax calculations
Figure 3. Creating a tax type when Helm CONNECT will make the tax calculations
How to edit an existing tax type
To edit an existing tax type
- From the Setup menu, select Invoicing.
- Click the Tax Types tab.
- Click the line item of the tax type you want to edit.
- The main information window for the selected tax type will appear (Figure 4).
There are several tasks you can perform at this point:
- Deactivate the tax type: This allows you to turn a tax type 'off' without deleting it. Since this is a toggle button, you can also reactivate the tax type if you need to. A deactivated tax type won't appear in any lists, and it won't appear on any new invoices. Deactivating it won't affect existing invoices where it's been applied.
- Duplicate the tax type: This is useful if you need to create another tax type that is similar to but not exactly the same as an existing one, and using this feature can same you some time. You can duplicate and then modify an existing tax type instead of having to create a new one.
- Delete this tax type.
NoteYou can't delete a tax type that is in use by a contract or a tariff item.
- Continue to edit mode for the tax type.
- To edit the selected tax type, click the Edit button.
- The main fields for the tax type become editable (Figure 5).
- To edit detail sections, click the pencil icon for the section you want to edit.
- Edit the tax type details as required (Figure 6).
- Save changes
- To save changes for a detail section, click the check mark icon.
- To save all changes for the tax type, click the Save Changes button.
Figure 4. Tax type main information window
Figure 5. Edit tax type name and calculation type
Figure 6. Edit tax type details
What you need to know when creating tax type rules
On the Tax Type tab, the Add Condition tools for defining business rules are similar to the tools used in tariffs and contracts. However, the business rules that can be defined for tax types differ from the business rules that can be defined for contracts and tariffs in the following ways:
- The Rate field is a pared down version of the Rate field in contracts and tariffs.
- There is only one group (you cannot add another group or subgroup).
- Account, location and area are not available as a rule condition.
- There are no extra fields for rate (e.g. applicable types)
- There is no rate table function.
- The tax type cannot switch between per order, per job, etc.
- There is no 'Billing Type' field.
- The Quantity field has three options: Flat Rate, Percent, and Formula.
NoteWhen the Quantity field = Formula, you can use a calculation with variables like you can with business rules for contracts and tariffs. This means you can base taxes on order-specific, potentially billable items such as Number of Tugs, Fuel Used, etc.
- If a tax type is attached to a rate rule in a contract or tariff item, then the tax will be generated when billing is generated.
Rate adjustment rules for tariffs or contracts do not use tax types. If rate adjustments are used, Helm CONNECT will apply the tax types to the final rate after any adjustments are applied.
- Taxes are calculated after all other calculations are done and will appear in the billing details.
A bit more about the tax type feature
- Users who have permissions to set up tariffs and contracts will be able to use any tax types by selecting a tax type from a list in the Tax Types field (Figure 7).
Figure 7. Example of where the Tax Types field is used on the Tariffs tab
NoteIf you select a tax type in the header of a tariff or contract, it will automatically be applied to each new rule created for that item. For existing rules, the tax type will have to be applied manually to each rule.
- Tax types can also be used when defining Billing Settings in Invoicing on the Setup menu (Figure 8). You can apply one or more tax types to the divisions and/or areas.
Figure 8. Where the Tax Type Field is used on the Billing Settings tab
NoteIf you apply a tax type at a division or area with other areas nested within it, Helm CONNECT will apply the tax type to all nested items except when the division or area has an existing tax type. If you make changes to tax types, Helm CONNECT will apply the tax type to any new contract or tariff for that division/area but will not apply it to existing contracts or tariffs. You must manually apply tax types to existing contract/tariff rules.
- Taxes calculated by Helm CONNECT appear in Billing on the Jobs menu and on any invoices generated by the system (Figure 9).
Figure 9. How tax types appear in billing
NoteWhen a tax type line is generated in a transaction, you can click the information icon to view the tax calculation (Figure 10). If the Uses External System for Calculation check box was selected when the tax type was created, then only the value entered in the External System Code will appear.Figure 10. View the tax calculation information in a transaction
How to manage permissions
If you have access to the Invoicing, Tariffs, and Contracts menu items in Helm CONNECT Jobs, then you will be able to use tax types.
To create and edit tax types, a user role will need permission to Tax Types under Invoicing for Jobs in the Setup menu (Figure 11). You can choose whether a user role can edit tax types, or has read only access.
Figure 11. Permission for Tax Types under Setup