Cumulative tax rates allow for tax rates to be applied in a specific order in Flowhub. Depending on local laws, this can be different by location.
For states that require taxes to be applied in a specific order or cumulatively, Flowhub gives you the control and visibility to ensure you're calculating taxes correctly and collecting the proper amounts through Cumulative Taxes.
How to Set Up Cumulative Taxes
To set up your cumulative tax rates in Flowhub, you must first add all applicable tax rates. Once all applicable taxes have been added, you will then create your cumulative tax rates through the following steps:
Select "Manage," and then "Location Management," from the bottom of the navigation menu.
Select "Cumulative Taxes" from the "Manage" drop-down menu.
If you do not have this setting, please reach out to your Flowhub Administrator to get this enabled.
Do not click the "Enable Cumulative Taxes" button unless all cumulative tax rates have already been created. This will be done after all other steps.
Click the "+" sign to the upper right of the main window.
This will open the "Cumulative Taxes" window:
Select which product you are setting the tax rate for. You have Medical Cannabis, Recreational Cannabis, Both Med and Rec, Non-Cannabis Products, and All Products.
To use cumulative taxes correctly, all products you sell will need to have an associated cumulative tax rate.
For example, if you have tax rates for both medical and recreational products, you need to create medical, recreational, and non-cannabis cumulative tax rates.
Now, select the tax rate that needs to apply first in the "Which Tax" drop-down menu.
Once the product and rate is selected, click "Calculate 1st," which will populate the tax rate in the "Calculated First" area.
Continue with the next tax rate, choosing "Calculate 2nd," which will populate the tax rate in the "Calculated Second" area.
Continue adding the taxes to their appropriate calculation order until all tax rates have been applied for the product type.
Once done choose "Calculate Examples." This will show you the breakdown of the tax rates and how they will apply.
Choose "Save" to return to the "Manage: Cumulative Taxes" page. Note: Save will not appear until you select the "Calculate Examples" button.
Follow the same instructions for all inventory types. Once you have set up all cumulative tax rates, you will then click the "Enable Cumulative Taxes" button. A green notification will pop up to the right saying, "Cumulative Taxes are now enabled in the cart."
Are taxes not calculating correctly?
If you created your tax rates after you enabled the "Cumulative Taxes" option, you will need to recreate your tax rates:
Disable the enabled cumulative taxes setting.
Remove any cumulative tax rates.
Select "Taxes and Fees" from the dropdown menu
Remove and recreate your individual tax rates to the correct rate.
Setup and enable the Cumulative Tax option using the above steps.