When you set up your Lawcus account, it's important to create sales tax rates for your invoices. Although dealing with taxes can be complicated, the process is made simple on Lawcus. This should be one of the first tasks you complete when getting started with Lawcus.
You can now add primary and secondary taxes on Lawcus and include these in your invoices.
Here's how you can set up taxes in Lawcus settings:
Tap the avatar icon, then select Settings
Navigate to Bill Settings, then tap Tax Settings.
Click 'Add New Tax,' input the new tax rate and name then hit Save.
Once added, you can designate a tax as primary or secondary, affecting how it applies:
On the secondary tax, you can choose how you want to apply it.
Secondary tax can be applied on -
1. Pre-tax amount
It is called the Pre-tax amount since it is applied directly to the invoice amount total.
In other words, this secondary tax is applied to the invoice amount that is calculated before the primary tax is applied to it.
For example -
The invoice subtotal is $100
primary tax is 10% - $10
Secondary pre-tax is 10% - It will be applied on invoice subtotal i.e. on $100
So the secondary pre-tax will be $10
Now the total is 100+10+10 = $120
2. Post-tax amount
This will be applied to the invoice amount calculated after the primary tax is applied to the invoice total.
For example -
The invoice subtotal is $100
primary tax is 10% - $10
Secondary post-tax is 20% - It will be applied on invoice subtotal + primary tax
So the secondary post-tax will be (100+10)*20% = $22
Now the total is 100+10+22 = $132
NOTE: It will work only on the new voices you create after adding the tax settings and not on the old already created invoices.