Adding Taxes, Discounts, or Fees to Sales or Purchase Orders

This video shows the process of adding taxes, discounts, or fees to sales or purchase orders using our software. These flow through the invoicing and reporting modules, but they are edited on the sales order.

See the video below for instruction.  The video has a sale order as an example, the process to add taxes, discount, or fees is exactly the same for a purchase order.

Adding Taxes, Discounts, or Fees to Sales or Purchase Orders

(Videos: See complete list of available videos)

Video Transcription

Hi, this is Jacie with Finale Inventory. Today, we are talking about discounts, fees, and taxes that can be added to purchase orders or sales orders. It’s the same method for both. So today we’re going to be concentrating on purchase orders. I’ll go ahead and create my purchase order. I can either use the system order ID or enter a unique value.

Then I will fill out my purchase order the way I usually would. I’ll select my supplier and turn any sort of received date terms, etc that I may have. And then I can add the line items to my purchase order.

I’ll go ahead and put the quantities for each. I have pricing that lives on my product details page. So that pulled over for us. Now we can see our sub total and our landed cost are the same in Finale. We use landed cost to establish your cost of goods sold. What this means is it’s not just the price of what you pay for the items, but you can also allocate the fees that you incur in getting them to you. So for example, if we have a shipping fee, we can actually allocate this to the line items in our purchase order. If I select shipping, I can enter the amount and I can choose how it’s allocated. Now, these various adjustments we set up on the backend. I’ll show you that in just a second.

Now you can see, we have the shipping cost. That’s allocated to the landed cost here. And if we go to show landed cost details, you can see exactly how that shipping cost was broken out by the line items in the purchase order. That is how you add up below the line discount for your tax. But if you would like to add more options, you can do this from the application settings in your Finale account.

In this case, we’re going to go to purchasing and adjustments. If you were doing this on the sales side, you would go to selling and then adjustments. You can add whatever discount for your tax. You may have here. You can enter the name of it, the description of it. And then you can choose whether it’s a percentage of the subtotal or a fixed amount that you would enter, and you can choose how it’s allocated.

You can allocate by subtotal quantity in units or by the weight. And you can have this be a fixed cost or something that you enter at the time you create the purchase. That is how you add discounts, fees, taxes, otherwise known as below the line items to a purchase or a sales order. If you have any questions following this tutorial, please do not hesitate to reach out to service@finaleinventory.com.