Taxes

Metric AI allows you to include sales taxes in invoices. This article will guide you through configuring and managing sales taxes to ensure accurate invoicing.

How to Enable or Disable Taxes

Permissions needed: Edit Invoices and Edit Invoice Settings

1. Edit an invoice.
2. Open the Settings.
3. Set Taxes to one of the following options:
   • Off: Disables taxes in both Edit and View modes.
   • Optional: Enables taxes in both Edit and View modes. The invoice editor can remain empty.
   • Required: Enables taxes in both Edit and View modes. The invoice editor cannot remain empty.
4. Click APPLY to save your changes.

Note: You can set tax settings in invoice templates to predefine tax settings for all new invoices.

Taxes Configuration

There are two ways to configure taxes in Metric AI:

1. Per Invoice

Set one tax type for all invoice line items.

• Select a tax type from the list of organization-defined tax types.
• Alternatively, input a custom tax rate manually.
• Define which line items are subject to the selected tax.

2. Per Item

Set different tax types for each invoice line item.

• Select a tax type from the list of organization-defined tax types.
• Alternatively, input a custom tax rate manually.

How to Change the Taxes Configuration

Permissions needed: Edit Invoices and Edit Invoice Settings

1. Edit an invoice.
2. Open the Settings.
3. Set the Taxes Configuration to Per Invoice or Per Item.
4. Click APPLY to save your changes.

Tip: You can set the taxes configuration in the invoice templates to predefine tax settings for new invoices.

Setting the Default Tax Type

Permissions needed: Edit Invoices and Edit Invoice Settings

1. Edit an invoice.
2. Open the Settings.
3. Set the Default Item Tax:
   • Choose a tax type from the list of organization-defined tax types.
   • Or manually enter a custom tax rate.
4. Click APPLY to save the changes.

The selected tax will be applied to all new line items. You can also set the default tax type in invoice templates to standardize tax settings for new invoices.

Managing Tax Types

Create a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Select Settings from the left-side menu.
2. Open Invoicing ↗.
3. Click the +ADD button on the Tax Types list.
4. Fill in the following fields:
   • Name: Displayed on the invoices.
   • Tax Rate: The percentage rate to be applied.
   • Description: (Optional) Additional notes or explanations.
5. Click Save to store the new tax type.

Delete a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Open Settings › Invoicing ↗.
2. Click the cross button next to the tax type you want to delete.
3. Click Save to confirm.

Note: Deleted tax types will remain on previously created invoices as a custom tax rate.

Change a Tax Type

Permissions needed: View Organization Settings and Edit Organization Settings

1. Open Settings › Invoicing ↗.
2. Update the Name, Tax Rate, or Description as needed.
3. Click Save to apply changes.

Note: Editing a tax type will also update it on all invoices that used that tax type, including previously created ones.