How To Setup Smart Tax

'Smart Tax' allows users to apply 'Inclusive Tax' on items such as alcohol until an item with an 'Exclusive Tax' is added to the check. Once an item with 'Exclusive Tax' is added to the check, all items begin charging 'Exclusive Tax'.
For example, a bar charges $3.00 for a beer. When a customer orders a beer, the total amount owed is $3.00. If a customer orders a beer and a hamburger, the beer changes taxes and applies the 'Exclusive Tax'. The beer now charges $3.00 plus $.25 tax for a total of $3.25.

Purpose
Demonstrate how to setup Smart Tax.

Restrictions
Refer to State and City tax laws to ensure legality of Smart Tax in your area.

Process To Setup Smart Tax
While in Setup, navigate to Order Entry > Taxes.

Create the Dining Liquor Exclusive Tax

Enter a 'Name for the tax.
- In this example, Dining Liquor.
Type = Exclusive Percentage.
Set appropriate sales tax rate.
Select appropriate 'OrderTypes'.
Set 'Active Time' if desired.
Set 'Rounding' if desired.
Under Smart Tax, set to <None>.
Select Save and Close.

Create an Inclusive Tax with Smart Tax

Enter a 'Name' for the tax.
- In this example, Bar Liquor.
Type = Inclusive Percentage.
Set appropriate sales tax rate.
Select appropriate 'Order Types'.
Set 'Active Time' if desired.
Set'Rounding 'if desired.
Under Smart Tax, select the 'Exclusive Tax' that the 'Bar Liquor' tax will switch to once an item with an "Exclusive Tax' is ordered.
- In this example, Dining Liquor.

Assign Items Smart Tax

Identify items to use smart tax. In this example, all alcohol.
In Menu > Menu Items find the items to use the Smart Tax.

Quick set the Items to use 'Bar Liquor' as the tax.

Select Save and Close.

Assign Smart Tax to Locations

It is possible to use Smart Tax on an item in one location, and not in others. Make sure items have both taxes selected if establishment wants to use Smart Tax in one area and Exclusive Tax in another. Taxes are assigned by 'Locations', thus allowing the Bar location to use 'Smart Tax' (Bar Liquor Tax) and the Restaurant location to use 'Exclusive Tax' (Dining Liquor Tax).

Navigate to Locations > Locations.
Select Location to use Smart Tax.
Under Taxes, select 'Bar Liquor'.

Select Save and Close.

Guest Checks with Exclusive, Inclusive and Smart Tax applied

Example of guest check with one beer. Notice there is no tax applied.

Example of guest check with one hamburger. Notice the tax of $.25.

Example of guest check with one beer and one hamburger. Notice total tax of $.50.

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