Adding sales tax to Ecommerce Orders

Most items that farmers sell are not subject to sales tax. The payment systems that Small Farm Central uses does not calculate sales tax automatically when your customer checks out of the store. However if you are selling something that is taxable the fix is simple; just add the tax into the price of the item, but remember to make sure that you indicate that you are doing so on your website, so your customers know that tax is covered in the cost.

If you use PayPal or as your payment method, this will be the only way to collect sales tax from your customers, since with these systems the payment is instant and you will not be able to charge them tax later. However, if you use the invoice payment method, you can choose to adjust your customer's invoice after they have checked out and send them an update to let them know the new total with the sales tax.

Sales Tax for Checkout with an Invoice

First, you will want to make sure that your customers know that you will be sending them an updated invoice which will include a charge for sales tax. You can do so on your website in areas that you list your products for sale or talk about ordering. Navigate to: Sell > Configure > Display Settings to add this information to your ordering pages. Since your customers will also getting their order details and the total before you are able to go in and add the tax to their invoice, you will also want to mention that they will receive a new invoice with the sales tax added in the confirmation email that your customers automatically receive when that make a purchase on your website. Navigate to: Sell > Configure > Email Settings to make a note of this in the confirmation email.

Once an order has been placed, you will need to go in and adjust the invoice for that order and add the tax. However, you will also need to create an item called "Sales Tax" in Ecommerce so that you can add this item to the invoice. You will only need to do this once, as you will be able to change the price of the item for whatever calculation the sales tax comes out to. To create this item navigate to: Sell > Manage > Items. Then click on the "Create New Item" link in the yellow header. Name the item, write a description if you like, and then choose a department in the "Pricing and Inventory" section to add the item to. It doesn't matter which one, since we will disable the item in the next step so that it doesn't show to the public.Next mark the price as $0.01 and click the checkbox next to "Ignore Quantity Availalbe". After you save the item and return to the Item Manager, disable the item so that it does not show up as an item that the public can choose in your department.

When you receive the email notifying you that someone has placed an order, find the order in your Control Panel by navigating to Sell > Orders & Reports > View Orders. Open the order and use the total to calculate the appropriate amount of sale tax based on your region's sales tax laws. Add the "Sales Tax" item to the invoice by choosing it from the drop-down menu and clicking the "add item" button. Now simply click the edit button (this looks like a pencil and piece of paper) next to the item and adjust the price to reflect the calculated tax.

Now your User's invoice correctly shows their order and added sales tax. This will also be reflected in the Balance tab of their User account.

To notify your customer of the updated totals, simply click the Send Order Confirmation button to generate an email with full order details to the customer.

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