Taxes

The Tax Module lets you define and apply tax codes across Silkline. When enabled, organizations can manage tax rates and apply them directly to purchase order line items.

• Taxes are applied at the line item level, giving flexibility for mixed-tax orders.

• Multiple tax codes can be assigned to a single line, allowing combinations like state and local rates.

• Total taxes, broken down by tax rate, will display in the Order Adjustments section on a PO

Tax Codes

Tax codes define the available tax rates for your organization. Each code has:

• Label – e.g. "Standard Tax," "Reduced Tax," "Tax Exempt"

• Rate – The percentage applied to line items

• Status – Active or inactive

To manage codes, enable the module, then add, edit, or deactivate codes as needed. Common examples include standard, reduced, and exempt rates.

How to Apply Taxes to Orders

Adding Taxes to Line Items

When creating or editing an order, you can apply tax codes to individual line items using the Tax Codes column in the line items table:

• Each line item can have one or more tax codes applied

• In the example above, line 1 has "Sales Tax" applied, and line 2 has "Super Tax" applied

• To add a tax code, click the dropdown in the Tax Codes column and select from your organization's available tax codes

Viewing Taxes on Purchase Orders

Once taxes are applied to line items, they are displayed in the Taxes column on the purchase order:

The Taxes column displays the total tax amount calculated for each line item, based on the applicable tax codes and rates.

Tax Summary in Order Adjustments

Total taxes are automatically calculated and displayed in the Order Summary section, broken down by each tax code:

• Each tax code is listed separately (e.g., "Sales Tax" and "Super Tax" in the example)

• The individual amounts are shown for each tax code

• A total tax amount is displayed, which rolls up into the order total

Tax Inclusivity

Purchase orders support a Tax Inclusive setting that determines whether taxes are included in the subtotal. When enabled at the PO level, tax amounts are included in the subtotal calculation rather than being added as a separate line item.