Learn how to easily create/manage tax classes and associate tax rates in Instinct!
Table of Contents
Invoice Taxes: Admin User Permissions
Invoice Screen: Tax Class Associations
🔐 Invoice Taxes: Admin User Permissions
Hospital Administrators have the ability to create/manage tax classes and associate product tax rates within the ‘Taxes’ Admin section.
📓 Please Note: Users will not have access to the ‘Taxes’ section automatically and a hospital administrator will need to add the admin_taxes permission to the appropriate user role (or create a new one) in order to view, create, and manage tax classes. If you do not see this permission, please contact us at firstname.lastname@example.org.
🧾 Admin: Invoice Taxes
The ‘Taxes’ Admin screen allows you to easily create new tax classes and manage existing ones. To create a new tax class, simply click + New Tax Class.
A ‘New Tax Class’ pop-up will then display to include all applicable tax information.
💡 A few things to keep in mind:
- The ‘Rate’ field accepts numerical values up to 3 decimal places and must be greater than 0.
- The ‘Application Date’ drives when the rate is applied to the invoice line items and defaults to the current date and time. A past or the future date can also be selected, if necessary.
Once saved, tax classes display on the ‘Taxes’ admin screen and can be edited by using the 3-dot menu followed by ‘Edit’, or by clicking directly on the tax class name.
Please note that editing any tax rate will change the rate on active/current and future invoices based on the application date. Past invoices for Checked-Out patients will never be affected by tax class revisions.
💡 A few things to keep in mind:
- Re-opening a visit will not adjust line items to new rates. If a previous Invoice needs tax rates adjusted, please contact us at email@example.com.
- If a product with a tax class is on an active/current invoice and the tax rate is adjusted in the Admin section with a future Application Date, the current product on the Invoice will not be impacted (meaning it will still have the previous tax rate applied).
- If this product is added to the invoice after the Application Date, the updated tax rate will be applied for any invoice item dated after the Application Date.
- Deleting tax classes via the 3-dot menu automatically removes the tax rate from any products it’s associated with.
- This does not impact line items on past invoices and these will still have the previous tax class rate associated with it.
- Active/Current Invoices that include line items with a recently deleted tax rate are impacted and will no longer be available on the invoice (meaning the taxes are removed).
💰 Admin: Product Taxes
A Tax Class can be added to a Product individually or via Bulk Edit. Tax classes can also be removed from products this same way.
📓 Please Note: Adding and removing tax classes only affect line items added on or after the Tax Class Application Date on current/active/future Invoices. This means past Invoices will never be impacted.
🧾 Invoice Screen: Tax Class Associations
When a product with an associated tax class is added to an Invoice, the line item displays the associated tax rate within a tooltip on the invoice screen.
Keep in mind the items on the Invoice screen reflect the pre-tax amount ($20 as shown above). The tooltip includes the Tax name abbreviation (if applicable), tax rate, and calculated tax amount (total price + tax).
Multiple tax classes can be associated with a product within the Application Date as shown below:
At the bottom of the Invoice screen, the Subtotal, Discounts (if any), Taxes, and Invoice Total are displayed. Taxes are calculated on the line item level, rounded to 2 decimal places, and combined for a total taxed amount. If discounts are also applied, taxes are calculated using the line item’s price minus any discounts. The tax rate is then applied to the final price.
🧾 Invoice PDF: Taxes
Any applicable Tax information is also included on the Invoice PDF:
📊 Chart: Taxes Tooltip
Tax information is displayed per visit when hovering over the Invoice icon on the Chart screen.
📓 Please Note: Taxes show a cumulative amount rather than percentage within the tooltip because there can be multiple tax class associations on the invoice. The amount displayed is the total percentage of the Subtotal minus any Discounts.
🔨 Invoice: Taxes Tooltip
Tax calculation information will now display on the bottom of the Invoice screen, next to the total amount information.
🧾Invoice Taxes: Revenue Details Report
The Revenue Details Report (found in the Analytic section) is a collection of all invoice items charged to an invoice during the time-period the report is generated for, regardless if the visit is checked-in or checked-out.
This report displays details about any products added to invoices (Product ID, Product Name, Category), the associated provider, Account and Patient details, and any Discount or Tax information along with the total price of the line item.
Report fields with Discount/Tax information include:
- Tax Class – The Tax Class for the product
- Total Tax Amount – The total Tax amount for any product that has an associated Tax Class
- Discount Class – The Discount Class for the product
- Total Discount Amount – The total Discount amount for any product that has an associated Discount class
- Subtotal – This is the price of the product before taxes and discounts are applied
- Total Amount – The total price of an item, taking into account taxes and discounts.
📓 Important Note: Totals are rounded to the nearest hundredth (2 decimal places) for Tax and Discount amounts and any taxes are applied AFTER discount amounts. Please know that rounding may cause small discrepancies with the totals if rounded differently.
💸 Taxes, Non-taxable Sales, and Discounts Report
The Taxes and Discounts report has been updated to include non-taxable sales. This change will be reflected in the report name as well as the report description.
- A new row for Non-taxable Sales has been added to the report and will display on the line above the Totals
- If there are no Non-taxable Sales for the selected reporting period, the Pre-tax Sales column for that row will display $0.00
- The Taxable Sales column has been re-named Pre-Tax Sales to more accurately reflect the column contents, and to avoid confusion with the addition of the Non-taxable Sales row
- The old Taxable Sales column was already showing the pre-tax sales amount for taxable sales, so this will be a name change only and there will be no change to how column contents are calculated
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