Working with Items
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      3. Working with Items

      Tax Item Type

      Learn how to create and add tax items to your custom and standard POs, invoices, PRs and Service Orders.

      TABLE OF CONTENTS

      How to Create New Tax Items on the Item Management Page

      To create a new tax item on the Item Management page:

      1. Go to Suppliers and Items → Item Management.
      2. Click the Add Item button → enter the required information.
      3. In the Item Type field, select the Tax option.
      4. Click Save to apply the changes.

      This item can be added to documents through the Catalog for future use (available for Invoices, POs, PRs, RFPs, and Service Orders).

      💡Please note: You can add a tax-type item to the catalog and use it in the documents regardless of your company’s tax settings in Configuration.

      Add Item

      How to Create New Tax Items on the Document Page

      You can add a new tax item while creating standard or custom POs and invoices. 

      Make sure that the tax functionality is deactivated in Configuration → Basic Settings → Document Setup → General Settings → Taxes.

      General Settings

      Once deactivated, follow the steps below:

      1. Click the Add Tax button in the created invoice or PO.
      2. Fill out the required information.
      3. Check the Add to Catalog box (optional) to save the item in the catalog with the corresponding tax type.
      4. Save to apply the changes.

      Add Item in Docs-1

      💡Please note: If you manually add a new item line using the Add button and enter the SKU and Name of an existing tax item from the Catalog, the system will recognize it as a tax-related expense and mark it with a tax icon in the document.

      Icon

      As an alternative to creating tax items, you can add new taxes through Configuration. Learn more in this guide. 

      Main Operational Features of Tax Items

      Tax items handling:

      • Tax items are added as individual lines and cannot be split in Service Orders.
      • No additional taxes are calculated for tax items. The “Tax %” and “Tax Sum” columns always remain empty for them.
      • Tax items can be free of charge or have a negative price.
      • You can add an unlimited number of tax items to a document, as well as create a document with only tax items.
      • Tax items can be added to related Credit Notes.

      Matching process: 

      • Adding tax items to an invoice from a PO does not trigger the Matching process, even if the tolerance limit is exceeded.
      • Tax items are automatically transferred to the PO after invoice confirmation, and amounts are updated (including OCR-processed documents).

      Receiving:

      • Tax items cannot be received, so they are automatically excluded from the list of items to receive when you create a receipt for a PO. 
      • In Service Orders, the “Can Be Received” field is set to No by default.

      PO completion:

      • The Purchase Order is automatically completed if all the regular items are received (except for the non-receivable ones), invoiced, and paid (all items have to be paid, including the non-receivable ones). 
      • You can manually complete a Purchase Order once all received items are paid, even if the receipt amount is less than the invoice total.
      • Documents containing only non-receivable items (like Tax and Shipping) will always have the “Not Received” status as these items do not require receiving. 
        To have the “Partly Received” or “Received” status, the document must contain at least one item that can be received.

        Status 2

        		 PO contains only non-receivable paid items.
        Status 1 PO contains receivable and can include non-receivable items. All items are paid.

      OCR processing:

      If a tax item already exists in the Catalog, it will be recognized and added as a tax-type item during OCR processing:

      • If taxes are disabled for your company and the OCR configuration has the “Enter Tax as One Line” setting activated, the tax will be added as a single item line.
      • If taxes are enabled in your company and OCR recognizes only the “Tax Amount” (and none of the “Tax Rate” labels were recognized), the tax will be added as a separate item line.

      Check this guide to learn more about managing taxes with OCR.