Smart Extract+ - Tax Rates
Smart Extract+ has the ability to extract and calculate your tax in ways our current Map technology can't — yet!
Multiple Tax Rates
If you live within Europe, you will be familiar with the concept of having multiple tax rates to choose from depending on the items you're purchasing, e.g., Ireland will have a 0%, 9%, 13.5% and 23%, UK has 0%, 5% and 20%, etc.
Smart Extracted documents can apply these rates automatically, providing you have entered the correct Tax Indicator against your Company or Supplier.
Company Level
Setting Multiple Tax Rates at a Company level is best suited for the Tax Indicators that are generic enough to cover the majority of your Suppliers, e.g., in the UK example, you could use a Tax Indicator of 5% as it's likely your Suppliers will use this. In the edge cases where Suppliers use A, B, C, etc. or 0, 1, 2, etc. to indicate the Tax Rate on each line, you'd be best adding these to your Suppliers individually where applicable. If that doesn't make sense yet, don't worry! It will soon.
If you navigate to Accountancy > Tax Rates, you can select your Default Tax Code and Default Tax Free Code as normal at the top of the page via the dropdown menus.
If you have additional Tax Codes that are regularly applied across your documents, you can click the + Smart Extract Tax Rate button 
to enter up to five additional Tax Rates.
You will have the option to select from the In Use Tax Rates in your Lightyear account, the same as the Default Tax/Tax Free Codes as above. In the previous example of 0%, 5% and 20% Tax Codes, you would select your relevant 5% Tax Rate from this dropdown.
The Tax Indicator field is what Lightyear will look for in your Extracted Data to determine which Tax Code to apply.
In the same example of a 5% Tax Rate, the Tax Indicator field should be the most common value to represent this, e.g., 5%.
Please Note: These Additional Tax Rates only apply to Smart Extracted documents.
See below for examples of what the Tax Indicator may look like on documents.
Supplier Level
Setting Multiple Tax Rates at a Supplier level is better suited for the Tax Indicators that are unique to the Supplier, or not distinct enough to cover a wide spread number of Suppliers, e.g., where A, B, C, etc. or 0, 1, 2, etc. is used to indicate the Tax Rate on each line. If the majority of suppliers use the same Tax Indicator, e.g., 5%, you can set this up at a Company Level instead
When you go to your Manage Suppliers page and click on the Edit pencil 
, scroll down to the Supplier Rules section. Here you can set your Default Tax Code and Default Tax Free Code as normal via the dropdown menus.
If you have additional Tax Codes that are regularly applied across your documents, you can click the + Smart Extract Tax Rate button to enter up to five additional Tax Rates per Supplier.
You will have the option to select from the In Use Tax Rates in your Lightyear account, the same as the Default Tax/Tax Free Codes as above. In the example of 0%, 5% and 20% Tax Codes, you would select your relevant 5% Tax Rate from this dropdown.
The Tax Indicator field is what Lightyear will look for in your Extracted Data to determine which Tax Code to apply.
In the same example of a 5% Tax Rate, the Tax Indicator field should be the Supplier specific value to represent this, e.g., C.
Please Note: These Additional Tax Rates only apply to Smart Extracted documents.See below for examples of what the Tax Indicator may look like on documents.
Examples of Tax Indicators on Bills
Tax Indicator: In this case you would enter 20% as your Tax Indicator as this is the value within the VAT column.
Tax Indicator: In this case you would enter A as your Tax Indicator as this is the value within the VAT column.
Tax Indicator: In this case you would enter 1 as your Tax Indicator as this is the value within the VAT column.
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