Tax and markups

Use the Tax/Markups tab in Company Setup to enter markup and tax information.

To access taxes and markups:

1. From the Setup shortcut bar, select Company Setup.

2. Select the Tax/Markups tab.

3. In the Tax Rates section, the name of the schedule currently set as the default is displayed in the Default Tax Schedule field. Use the Tax Matrix Setup button to open the Tax Rate Setup window, where you can configure the tax rates and tax schedules and where you can select which schedule to use as a default Tax Schedule.

4. Type your shop’s markup information.

   Markup information

   Sublet %: Type the markup percentage of work you send to other shops. Labor Guide %: Type the markup percentage for labor items from the ALLDATA Parts and Labor Guide. Price Matrix Setup: Click this button to open the Price Matrix Setup window, where you can configure the markup and profit margin rates.

   For more information, you can view the:

   • Setting Markups video from the MANAGE menu at Tips > Setting Up MANAGE SM > Setting Markups

   • Setting the Parts Price Matrix video from the MANAGE menu at Tips > Setting Up MANAGE SM > Setting the Parts Price Matrix

5. Type your shop’s supply charges information.

   Shop Supply Charges information

   Type: Select Parts & Labor, Parts Only, or Labor Only. Amount: Type the fee amount. $ or % buttons Select the type of charge: a flat dollar charge ($) or a percentage charge (%). Max. Charge: When a percent charge is selected, enter a maximum dollar charge. Do not leave this box at zero or the application assumes there is no maximum charge. Apply Tax: Select Apply Tax if the shop supply fee is taxable. Supplies are a materials charge and are taxed using the parts rate. If your Parts % tax rate is set at zero, then this field is disabled.

For more information, refer to Creating a shop supply fee.

6. Type your shop’s hazardous materials charges information.

   Hazmat charges information

   Type:	Select Parts & Labor, Parts Only, or Labor Only.
   Amount:	Type the fee amount.
   $ or % buttons	Select the type of charge: a flat dollar charge or a percentage charge.
   Max. Charge:	When a percent charge is selected, enter a maximum dollar charge. Do not leave this box at zero or the application assumes there is no maximum charge.
   Apply Tax:	Select Apply Tax if the hazmat charge is taxable.

For more information, refer to Creating a hazardous materials fee.

7. Type your shop’s Minimum Order Profit Margin percentage in the Profit Margins area.

8. Click Submit.

See an example of the Tax/Markups tab.

Note: If you edit tax or markup information that appears on any estimates or repair orders, the tax and markup information on the estimate or repair order is updated. Editing tax or markup information does not affect cashiered orders, posted invoices or service history.

For more information, you can view the:

• Setting Parts and Labor Tax Rates video from the MANAGE SM menu at Help Video Tips > Setting Up Manage > Setting Parts and Labor Tax Rates

• Setting Markups video from the Manage menu at Help Video Tips > Setting Up Manage > Setting Markups

• Setting the Parts Price Matrix video from the Manage menu at Help Video Tips > Setting Up Manage > Setting the Parts Price Matrix

• Setting Minimum Order Profit Margin video from the Manage menu at Help Video Tips > Setting Up Manage > Setting Minimum Order Profit Margin