Configure and collect WET (Xero)

Configure and collect WET (Xero)

Overview

Find out how to configure Cin7 Omni and your Xero integration to collect wine equalisation tax (WET).

Only businesses registered for tax in Australia must collect WET.

Wine equalisation tax (WET) applies to sales and purchases of wine classified as an assessable dealing by the Australian Tax Office (ATO).

If you’re based in Australia and buying or selling wine or wine products, you can configure Cin7 Omni to automatically collect WET on assessable dealings, and configure your Xero integration to allocate WET to a liability account.

Only businesses registered for tax in Australia must collect WET. Find out more about wine equalisation tax (WET) and assessable dealings on the website of the Australian Tax Office (ATO).

Configure WET

To collect WET, you must:

  • Enable Cin7 Omni to collect WET.

  • Tag products and contacts that incur WET.

  • Choose a Xero liability account where WET gets allocated.

1. Enable Cin7 Omni to collect WET

First, log in to Cin7 Omni as an administrator and enable WET for contacts:

  1. From the navigation, open the CRM.

  2. Open Settings.

  3. Open the General tab.

  4. Set Show WET Tax to Yes.

  5. Select Save.

Then enable WET for products:

  1. From the navigation, open Products.

  2. Open Settings.

  3. Open the General tab.

  4. Under Show Additional Fields In The Product Form, select WET.

  5. Select Save.

And finally, enable WET for transactions:

  1. From the Sales menu in the navigation, open Sales Orders.

  2. Open Settings and then the General tab.

  3. Under WET Tax, set Show WET Tax to Yes.

  4. Select Save.

  5. From the Purchases menu in the navigation, open Purchase Orders.

  6. Open Settings and then the General tab.

  7. Under WET Tax, set Show WET Tax to Yes.

  8. Select Save.

2. Tag products and contacts that incur WET

Whether a transaction incurs WET depends on (a) what you sold and (b) who you sold it to. So you must tag products and contacts that may give rise to WET.

Then, when you buy or sell a tagged product in a transaction with a tagged contact, Cin7 Omni will calculate the WET liability of that assessable dealing.

First tag each product WET applies to:

  1. From the navigation, open Products.

  2. Open the product.

  3. Under Special Tax, select WET.

  4. Select Save and Close.

Then tag each customer and supplier who gives rise to WET liability:

  1. From the navigation, open the CRM.

  2. Open the contact.

  3. Under Accounts, choose a WET Tax option:

3. Choose a Xero liability account where WET gets allocated

Now you must choose a liability account where WET gets allocated.

First, contact Cin7 Omni support and ask them to enable WET in your QuickBooks Online integration, and choose a liability account in your Xero chart of accounts to allocate WET to.

Then configure your Xero integration:

  1. Log in to Cin7 Omni as an administrator.

  2. From the Accounting menu in the navigation, open your Xero integration.

  3. Open Settings.

  4. Under Default Accounts, set WET Tax to your chosen liability account.

  5. Select Save Settings.

Collect WET

Once you’ve configured WET (see above), Cin7 Omni will automatically calculate WET for transactions that qualify as assessable dealings – that is, for sales and purchases of tagged products in transactions with tagged contacts.

When you create a transaction for a tagged contact, the contact’s WET option (retail or wholesale) is displayed in the WET Tax Status field on the transaction. Then, when you add a tagged product to the transaction, that product’s WET liability is calculated according to the contact’s WET option:

  • If the contact’s WET Tax Status is WET on Wholesale, the WET liability is calculated and recorded in the Surcharge field.

  • If the contact’s WET Tax Status is WET on Retailand the transaction is tax exclusive, the WET liability is calculated and recorded in the Surcharge field.

  • If the contact’s WET Tax Status is WET on Retailand the transaction is tax inclusive, the WET liability is calculated and included in the Product Total.

Optionally, you can manually set or override each transaction’s WET Tax Status.

Finally, when you sync the transaction with Xero, the WET is allocated to your chosen liability account – the account will be credited for WET on sales orders and debited for WET on purchase orders.

View WET insights

Find insights on your assessable dealings by installing Cin7 Omni’s WET Tax (Invoice Date) report:

  1. Log in to Cin7 Omni.

  2. From the navigation, open Insights.

  3. From the navigation, open the Reports Library.

  4. Find WET Tax (Invoice Date) and select Install.

Now the WET Tax (Invoice Date) report is available under Standard Reports in Insights.

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