Tax rate management allows you to set and update tax rates for various products and transactions, ensuring accurate tax calculations and compliance. This supports efficient financial management by applying the correct tax rates to sales, purchases, and other financial activities.
Tax rates in Katana are applied to products and materials on sales and purchase orders to calculate the total price or cost of items on the order with taxes.
Purchase prices, sales prices, and all costs in Katana are recorded without taxes. Taxes are only relevant in Katana to display the correct total prices or costs on orders.
Displaying taxes can be important for multiple reasons, such as:
Sending sales orders (SOs) to customers or creating invoices based on SOs in Katana. If you create invoices based on Katana SOs, you need to add taxes to the invoice and can get the tax information directly from Katana.
Note: Invoices cannot be created in Katana, but you can use SOs as a basis for your invoices created outside Katana (such as QuickBooks).
Sending purchase orders (POs) to suppliers via printing or saving Katana orders, you likely need to display the totals on the orders with taxes.
If you sync your orders with e-commerce channels or accounting platforms, reconciling the orders between systems is easier when the totals match.
Creating and editing tax rates
Tax rates can be created and edited from Settings > Tax rates. Here, you can add new tax rates and edit or delete existing ones. You can also set the default tax rates for SOs and POs.
These tax rates can be chosen for items on your SOs and POs. The first tax rate in the list is your default tax rate, which is added to items on orders by default. You can drag and drop the order of tax rates.
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