The way in which tax is treated on Purchase Orders and Transfers depends on whether your setup is Tax-Inclusive or Tax-Exclusive.

• Tax-Inclusive: This refers to systems such as VAT in the UK, where the Price of the item in the Point of Sale includes the tax charged to the customer.
• Tax-Exclusive: This refers to systems such as Sales Tax in the USA, where taxable amounts are added on top of the Price of the item when sold.

If you are unsure of your current settings, navigate to Setup > Configuration in the Back Office side menu. Scroll down to the Tax Setup section, and you will see here if you are set as Tax Inclusive or Excluding Tax. (This is set for you by Citrus-Lime when your Cloud POS account is first created.)

Tax-Inclusive Retailers

Purchase Orders

For Tax-Inclusive Cloud POS groups, items on Purchase Orders will use the tax rate set in the Suppliers tab of the item record. This is the case even if this isn't the primary supplier of the item.

For example, on this item record we can look at the Suppliers tab and see that the tax set for the supplier "Citrus-Lime" is T1 - VAT 20%:

Therefore, when this item is added to a Citrus-Lime Purchase Order, the tax rate on this item is T1 - VAT 20%:

If you need to change this on a particular Purchase Order, you can click into the Tax Rate field and select a new tax rate from the dropdown menu. Any changes to this grid will be autosaved.

Transfers

For Tax-Inclusive Cloud POS groups, items on Transfers will use the tax rate set on the item record.

For example, on this item record we can see the Tax Rate of the item is set as T0 - Zero Rated:

Therefore, when this item is added to a Transfer, the tax is zero rated. You do not see this on the individual Transfer lines, but it can be seen by clicking on the blue pencil icon in the top left of the Transfer, and looking under Ship Here:

This is the case for a Transfer Between Stores, a Send to Supplier and a Transfer Out of System.

Tax-Exclusive Retailers

Purchase Orders

For Tax-Exclusive Cloud POS groups, items on Purchase Orders will use the tax rate set in the Suppliers table of the item record. This is the case even if this isn't the primary supplier of the item.

For example, on this item record we can look at the Suppliers tab and see that the tax set for the supplier “Citrus-Lime” is No Tax:

Therefore, when this item is added to a Citrus-Lime Purchase Order, the tax rate on this item is No Tax:

If you need to change this on a particular Purchase Order, you can click into the Tax Rate field and select a new tax rate from the dropdown menu. Any changes to this grid will be autosaved.

Transfers

For Tax-Exclusive Cloud POS groups, tax will not be charged when items are added to Transfers. This is the case for a Transfer Between Stores, a Send to Supplier and a Transfer Out of System.

For example, on this item record, we can see that the item is subject to the Store Default tax rate when sold. Clicking View Store Taxes shows us that this would mean tax of 8.87% in the New York Store and 5.5% in the Green Bay Store. (Please note these rates are purely for demonstration purposes.)

However, when the item is added to a Transfer, no tax is added. You do not see this on the individual Transfer lines, but it can be seen by clicking on the blue pencil icon in the top left of the Transfer, and looking under Ship Here: