Let us the steps stated below to calculate US tax using the Deskera Mobile App.
Fig 1: Add/view Product details
You will be encouraged to add a new product or service if it's your first time here. Deskera App allows you to define the item type to be of a product (tangible) or service type (intangible).
You can view a list of your organization's existing products and services.
Tap on the "+" icon to create a new product/service.
Fig 2: Tap on Tax Category Fig. 3: Check on the tax code for your product
Add the Product Image, Name, and description: tracking and Non-Tracking button you can track the inventory availability details.
Under the sell, you need to select the sell account category, Product Sell Price, and product tax category. The product category is crucial in determining the sales tax of that particular product. So, you will need to enter the type of product you are selling and the tax code will be auto-populated using our Avalara APIs.
You can indicate the initial selling price for the product/service as the price will automatically populate in the sales transaction forms. You can also edit the price in the forms if and when required. Indicate the 'product category' of the product that you are selling as it's crucial for the computation of Sales Tax.
Fig. 4: Fill in the Buy and Product Options
Under the buy option, you need to select any one purchase amount category, which is a general ledger account in which inventory purchases for businesses are recorded and later click on the Save button.
If you have an initial Purchase Price to be included for the product/service, you may tap and enter the value. This price will be populated in the purchase transaction forms, whereby you can further amend the product's price accordingly.
Deskera Mobile App also allows you to scan the barcode / QR code of your product/service to capture the barcodes tagged to your physical products successfully.
Aside from filling in the right product classification, you will need to ensure that all addresses, ship-to address, and ship-from address must be complete, accurate, and recognizable to Avalara. Avalara will then calculate the sales tax required for each transaction.
Deskera Mobile App will capture which products that are liable for sales tax with the help of Avalara API integration.
Congratulations! You have learned how to create a product for US-based organizations on Deskera Mobile App.
In the next article: Learn more on How is India GST calculated on Deskera Mobile App?