ADM - Tax Mapping and Creating Tax Rates


This guide will review how to create tax rates, tax categories, and how to map taxes to a location.

Note: Your tax level must be set to Tax Category to use the Tax Mapping tool. If it is set to Item Level Tax, you will not see these settings. Contact 365 Support to adjust Tax Levels if needed.


How Tax Rates and Categories Work in ADM

Many organizations operate out of multiple states, countries, or other areas where taxes may differ. In order to easily organize the different tax rates that may apply to your various locations, ADM allows you to create tax categories, tax rates that can be broken down into multiple parts, and more. 

Let's give an example. Suppose you have an org that operates out of two different states, which each have different taxation requirements. For the sake of our example, let's call them State A and State B. You have one location in one city in State A: let's call it City 1. In State B, you have two locations in two different cities: let's call them City 2 and City 3

Tax Categories are created at the org level, and can be mapped to multiple locations.  We may have many categories we will need to make for these locations, but since all three of them sell food in this example, let's have one tax category called Food Taxes, and apply it to all three locations. 

With that done, we can now create Tax Rates to put into this Tax Category. Since State A has a flat food tax rate of 5%, we will create one 5% percent rate and apply it to the Food Taxes category for the location in City 1. We'll also apply the category to all the food items being sold at that location, so that the system knows to assign the correct tax rate (5%) to them. 

For State B, the process starts similarly but becomes more complicated. State B itself has just a 4% tax rate on food, but businesses in City 3 are charged an additional 3% for all food items sold. For your location in City 2, we only need one 4% tax rate to be applied to the Food Taxes category. For your location in City 3, we will create a tax rate that charges 7% total: 4% to send to the state, and 3% to go to the city. ADM allows us to do this by having tax rates that can be broken down into 4 separate sub tax rates. Assign the sub rates of 4% and 3% to this rate, and ADM will charge your customers for both sub rates.

With the sub rates assigned, the same tax category of Food Tax is now assigned to all three of these locations. However, to meet the different tax needs of each state and city, all three of them have different tax rates, with different percentages.

Now when that same product with the Food Tax category is sold from these different locations, it will be sold at the following tax rates:

  • City 1 Location:
    • Tax Category: Food Tax
    • Tax sub rate(s): 5% (state tax)
    • Total Tax Rate: 5%

  • City 2 Location:
    • Tax Category: Food Tax
    • Tax sub rate(s): 4% (state tax)
    • Total Tax Rate: 4%

  • City 3 Location:
    • Tax Category: Food Tax
    • Tax sub rate(s): 4% (state tax), 3% (city tax)
    • Total Tax Rate: 7%

ADM also allows us to assign multiple categories and rates to the same locations and products as needed: things like a plastic bag tax, a beverage tax, etc. can all stack on top of each other. Let's now go through the process of creating and mapping these categories, rates, and sub rates. 


Creating a Tax Category

  1. Click on the Admin tab in the main menu bar in ADM.
  2. Select Category from the drop-down menu. The Category List page displays.
  3. Click on Create New.
  4. Enter the following information when creating a new Tax Category:
  • Name of your Category
  • Type = TAXCAT
  • Seqnbr = 0 (default setting)
  • Click Save when finished.
  • You can now map this category to locations and link it to products.

    Creating Tax Category.gif


    Creating a Standard Tax Rate (Non-Dining)  

    1. Click on the Admin tab in the main menu bar in ADM, then select Tax from the drop-down menu.

    2. The Tax List screen will now display. Click the Create New button on the right. 

    3. The Tax Create pop-up window will display. Enter a description in the Description field. This will name the tax listing, and the name will appear on the Tax List once saved.

    4. Click Save. The Tax List screen will display again, now with your newly created tax listing.  
    5. Click the name of the new tax you just created. The Tax Rates screen will display.

    6. Click Add Rate. A pop-up window will display four fields. These fields are for sub rates, and any amounts listed in them will stack on top of each other. For example, if you have state taxes and city taxes that need to be applied, you can list the state tax amount in Rate 1, and the city tax rate in Rate 2. Your customers will then be charged both the state rate and the city rate for their items.

      Complete all fields. If you only have one tax rate and are not using Dine-In or To-Go options, put a zero (0) in the field for the other rates.
      If you are using Dine-In/To-Go, please see Creating a Dining Tax Rate: Dine-In and To-Go settings.


    7. Click Save. The Tax Rates screen will display again.

    8. Click Save. The Tax List screen will display again. You have created a new tax category and set up a rate for it.


    Creating a Dining Tax Rate: Dine-In and To-Go settings

    Some states, such as Ohio in the US, have a different tax rate for Dine-In vs To-Go. To ensure the correct tax rates are being applied to transactions, the sub tax rates work differently for 365Dining locations with these delivery methods enabled. 

    ADM will not stack the sub rates named Rate 1 or Rate 2 if your location offers Dine-in or To-go. Instead, it will apply Rate 1 for all Dine-In orders, and Rate 2 for all To-Go orders. The other rates, Rate 3 and Rate 4, will continue to stack as normal. 

    ADM will only take information from the sub rate field that corresponds to the correct delivery option.  

    • If you are using both Dine-In and To-Go and your region does make a tax distinction between those delivery options, use the Rate 1 sub rate for your Dine-In tax rate and use the Rate 2 sub rate for your To-Go tax rate.

    • If you are using both Dine-In and To-Go but your region does not make a tax distinction between those delivery options, you must fill in the same amount for Rate 1 and Rate 2. This is because the amounts in these sub rates no longer stack. Do not put "0" in Rate 1, as this will tell ADM that no tax is needed for Dine-In orders, and do not put "0" in Rate 2, as this will tell ADM that no tax is needed for To-Go orders. 

    • If you are using only the Dine-In option, you must use Rate 1 for your Dine-In tax rate. Put "0" in Rate 2, as you will not have To-Go items. You cannot use this sub rate for other tax information. 
    • If you are using only the To-go option, you must use Rate 2 for your To-go tax rate. Put "0" in Rate 1, as you will not have Dine-In items. You cannot use this sub rate for other tax information. 

    All other tax rate and tax category processes remain the same. Be sure that the correct Dine-In and To-Go options are marked accordingly for your devices and locations, as shown below. 



    Mapping a Tax Rate to a Location

    Note: One or more tax categories and tax rates need to be set up to be able to use the Tax Mapping tab. Additionally, your Tax Level must also be set to Tax Category in the organization settings to be able to set tax categories and rates.

    1. Click the Location tab in ADM.

    2. Click on the name of the location you want to update. The Location Summary page will display.

    3. Scroll to the bottom of the page and click the Tax Mapping tab.

    4. Click Add Mapping. A pop-up window will display:

      • In the Tax Category field, choose the category that you have previously created and applied to products.
        • The category you choose pulls from the Admin > Category section in ADM, and needs to first be applied to products in the global product list in order for it to properly map:

      • In the Rate field, choose a rate that will be linked to that category.
        • Tax Rates are found within Admin->Tax, and are tied to a specific tax percentage:

    5. Click Save, then go back into the location and push a Full Sync:

    6. You will now see the tax category you have mapped along with the rate under the Tax Mapping tab