VAT on sales orders

Tax codes

Manual orders

Every product in Brightpearl is assigned a tax code.

When the product is manually added to a sales order, system uses the following rules to determine what tax code to use:

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To summarize, the product tax code is used, unless the customer has been assigned a tax code, in which case the customer tax code is used.

It is possible for each tax code on an order to be manually changed after the item has been added to the order.

Downloaded orders

When an order is downloaded from a sales channel it will use the following tax rules to decide which tax code should be assigned to each order row.

tax_flowcharts_-_downloaded_VAT.png

Read more about tax rules for the VAT scheme here.

Tax amounts

Manual orders

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.

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Warning: If the tax is overridden and the quantity is then changed, the manual tax amount won't change in line with it - it will need to be updated again!

Downloaded orders

For orders downloaded from a sales channel, the tax amount is specified by the channel.

If the channel amount disagrees with the amount Brightpearl would have calculated, it will be treated as manual tax and be flagged in a yellow tax box.

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