Adding Sales Tax

Some states require a sales tax charge to renters. Your Rentec Direct property management software provides a convenient option to include surcharges, such as sales tax, with rent on one comprehensive invoice.

Charging Sales Tax

If the Sales Tax charge is to be recurring with the rent charge, we would recommend using the surcharge feature allowing you to create a custom category, creating one invoice to be posted to the tenants ledger. Click here to learn more about Tenant Invoices with Surcharge Options

Whether the sales tax charge is recurring or a one time charge, the transactions can easily be accomplished by following the steps below.

Create a Comprehensive Invoice with Rent and Tax or Other Charges Combined, Using Surcharges

In your Rentec Direct account:

  1. Click Settings
  2. Under Financial select Product & Services
  3. Click +Add Product 
  4. Add a description and set the type to other 
  5. Click Save New Product - which will take you back to the Products & Services page
  6. Edit the rent product by clicking the paper/pencil icon 
  7. Add the new Surcharge from the drop-down options
  8. From the drop-down menu, choose between percentage (up to 10 digits) or fixed fee
  9. Click Save Changes 

Note: This option will be available when tenants are placed in properties.

Below is a sample of your finished product. You will notice the option to add additional surcharges below Sales Tax.

Adding Sales Tax

Create a One-Time Tax Charge

If a one time tax charge is needed, simply post a charge to the tenant by following the steps below.     

In your Rentec Direct account: 

  1. Click Tenants
  2. Using the search filter in the upper right corner locate the tenant
  3. Using the tenant card to the right or right click to access the menu and select Post Charge 
  4. Enter transaction details using your custom sales tax product/service or category 110, which is specifically for these additional charges related to Tenants
  5. Add the tax amount being charged
  6. Add a memo (ie: sales tax, quarterly tax, etc.) on the memo line
  7. Leaving the recurring option unchecked 
  8. Click Post Charge to save the transaction

Note: Click here for details on how to create a custom category

Create a Recurring Tax Charge

If you prefer to set up a separate recurring transaction to apply the tax charge, these steps provide excellent instructions.

In your Rentec Direct account: 

  1. Click Tenants
  2. Using the search filter in the upper right corner locate the tenant
  3. Using the tenant card to the right or right click to access the menu and select Post Charge 
  4. Enter transaction details using your custom sales tax product/service or category 110, which is specifically for these additional charges related to Tenants
  5. Add the tax amount being charged
  6. Add a memo (ie: sales tax, quarterly tax, etc.) on the memo line
  7. In the lower left corner under, check the Recurring box
  8. Another line will open at the bottom allowing you to enter the recurring details
  9. Click Post Charge to save the transaction

Note: Click here for details on how to create a custom category

System Note: If your accounting default setting is set to charge rent "x" amount of days before the due date, charges added as a surcharge will automatically appear together on the tenant ledger. If you choose to set separate recurring transactions, be sure that your transaction has a begin date prior to the rent due date as well. 

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