Invoicing With Non Tax Deductible Line Items

System Setup

To setup an event with a non-tax-deductible component to registration fees, there are certain Gnosis System Settings that must be in place first.

Setting up Taxable Accounts

Each charge on an invoice is determined to be deductible or not based on the account that is used for the charge.  To facilitate this, specific accounts in the Gnosis account list in reference data must be designated as non-tax-deductible accounts.

In reference data, add or identify accounts for which you wish to designate receivables as not tax-deductible by marking then with a '1' in the first 'Bound' field.

If you are using the Gnosis-Quickbooks interface, depending on your chart of accounts setup, you may wish to have two accounts in Gnosis (one of each tax type) both posting to the same Quickbooks account.  Remember that if you add an account for this purpose, you will have to go into the Gnosis-Quickbooks interface and set up mappings for the newly added accounts.

Setting up Invoice Formats

If you do already have an invoice format that differentiates tax-deductible from non-tax-deductible, you will want to choose a new format that presents the deductibility information in the desired manner.  Connect4 has standard invoice print formats for both Generic Invoices and Event Registration Invoices that can be used as a starting point for invoice design, or, alternatively, we can produce a design to meet your requirements.  To install a new format:

1. Download the tax deductibility invoice design format and save it
2. Go to the Documentation Design Center and edit the 'Generic Invoice' or ‘Event Invoice’ format as desired.
3. Load the downloaded format into the editor.
4. Make any additional customizations required.
5. Close and save the editor

The Tax Deductibility Invoice design format will mark each invoice line that is not tax deductible with an '*' and when any non-tax-deductible items are present, will display a message about tax deductibility along with the non-deductible total.

Event Registration Billing

Events can be easily set up to bill registration for both deductible and non-deductible registration fees. There are two parts to this setup for an event:

1. On the event registration setup page, select the account for billing the normal deductible registration fee component and choose a deductible account for this field.  In the goods and services account field, select an account that you have set up as non-deductible.
2. In the registration type grid below, specify in the G&S (Goods & Services) column of each appropriate line, the amount of the registration fee for that line that is not deductible.

Invoices for registration will then automatically show the split registration line items, one for each part of the registration fee.