VAT on Sales Orders

Tax codes on manually entered orders

Every product in Brightpearl is assigned a tax code. When the product is added to a sales order the product tax code is used. However, if the customer has also been assigned a tax code, this will override the product. It is possible for each tax code on an order to be manually changed.

When a tax code is assigned to an order row, the tax amount is automatically calculated using the tax code rate. It is possible to manually type in a different tax amount, which will override the Brightpearl calculation. This is called "Manual Tax". Manual tax is indicated with a yellow tax amount field on the order.

Tax codes on downloaded orders

When an order is downloaded from a sales channel it will use the Tax Rules to decide which tax code should be assigned to each order row. The Tax Rules will use the following details to calculate which tax code should be assigned to an order row:

  1. Customer
    If the customer has a tax code it will be assigned to the order. If they do not have a tax code then the following things are considered:
  2. Country
    If the order country falls within a tax zone, the tax code from the zone will be assigned to the order. If there is no tax zone, or the tax zone has no tax code, then the following things are considered:
  3. Product
    If the item on the order can be linked with a product record, that tax code from the product will be assigned to the order row. If no product record can be linked, a misc item is created and the company default for your account will be assigned.

Note that the value used on the order may be that calculated by Brightpearl, or that from the sales channel. Please refer to your developer or channel documentation for channel specific rules and settings.

Manual tax

Manual tax is where the tax amount has been manually edited on an order to override the amount which was calculated using the applied tax code.

This might be required to resolve rounding differences between Brightpearl and another system; there are various correct methods for rounding in accounting so this means there can be differences between Brightpearl and other applications. For example, a purchase order created in Brightpearl might have a different tax amount than on the invoice received from the supplier even if the product prices and tax rates all match. In this case the tax amount can simply be retyped to match the supplier invoice so that the invoice can be received against the order.

You can tell that manual tax has been applied on an order because the tax amount against a line item will be in a yellow box instead of the usual white.

manual tax

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