This article is about understanding Tax in Blackpurl for both QuickBooks and Xero
As you can appreciate Taxation can be a minefield so it is important that you know how to account for the taxes paid and collected to the relevant government authority
Australia and New Zealand
- For the most part Australian and New Zealand Tax is quite simply as they have a base tax rate that is charged across the board .
- Once the Sales Taxes and Purchase Taxes are set up correctly and the relevant Tax Code Mapping is setup in System Settings > Accounting Integration in your Blackpurl, it is very easy to account to the relevant government authority for taxes directly from Xero or QuickBooks
- The Tax Code Mapping means that Xero and QuickBooks has allows Blackpurl to map directly to the Taxes that Xero and QuickBooks have and all reportability for the relevant Taxes is done by running the reports from Xero / QuickBooks
- If you are an Australian Dealership that adhere to Notional Input Tax Credit (NITC) then we would suggest that you make yourself familiar with the following articles:
United States of America and Canada
- QuickBooks and Xero does not allow third party (like Blackpurl) to integrate directly to any Tax General Ledgers that are the Tax defaults and already in Xero / QuickBooks
- As this is the case at Activation, you would have been setup with new BP Tax Collected and BP Tax Paid General Ledger in your Accounting package
- When a Customer Order Invoice or a Vendor Invoice with tax integrates from Blackpurl to Xero / QuickBooks, the tax will show in Xero / QuickBooks as a line item instead and will point to the relevant BP Tax Collected or BP Tax Paid General Ledgers
- When reporting on your taxes, instead of using Xero / QuickBooks to pull the relevant reports, you would use the Tax Detail Report in Blackpurl. This is the link to the relevant article - Reporting - Tax Detail
- Then when accounting to the relevant government authority, you will need to allocate 'payment' to the Tax Collected / Tax Paid General Ledgers