Taxable Services and Rates

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Navigation:  MLS 2026 Installation and System Setup > System Information Setup > Setup Values >

Taxable Services and Rates

     

The Taxes and Rates setup controls many of the core calculations used throughout MLS 2026. These settings affect:

Workorders

Invoices

Estimates

Inventory pricing

Labor calculations

Profit protection

Shop supply assessments

System numbering

Because these values directly affect customer billing and accounting operations, they should be configured carefully before daily processing begins.

Taxes

Most shops are required to charge sales tax on certain services, parts, or supplies. MLS 2026 allows you to define the default tax behavior used throughout the system.

Each taxable category includes:

A Taxable flag (Y or N)

A Tax Percentage field

Enter tax percentages as whole numbers:

8.75 means 8.75%

NOT 0.0875

If a category is not taxable:

Set the percentage to 0.00

Or disable the taxable flag

Important Tax Logic

The setup values provide the default starting behavior only.

Tax will NOT be charged if:

The inventory item is marked non-taxable

OR the client account is marked non-taxable

This layered structure provides flexibility for:

Wholesale accounts

Government agencies

Non-profit organizations

Tax-exempt services

Special inventory items

Always verify your local tax requirements with your accountant or tax authority.

Labor Rates

MLS 2026 includes Default Labor Rates used during workorder creation.

This is normally your standard hourly labor charge.

However:

Rates may be changed during workorder processing

Multiple labor rates may be maintained

Special clients may receive custom pricing

Premium services may use higher rates

The system includes five standard labor pricing levels tied to the Labor Rate flag assigned to each client account.

Examples might include:

Retail

Fleet

Warranty

Wholesale

Preferred Customer

Additional custom rates may also be selected directly on workorders when needed.

Margin Protection

MLS 2026 can help protect profitability by enforcing minimum margins on:

Parts

Labor

Sublets

Enter the minimum desired margin percentage for each category.

Again, use whole numbers:

35 means 35%

NOT 0.35

When pricing falls below the required margin:

The system alerts the operator

Displays the actual margin

Allows automatic adjustment to the desired percentage

This feature helps prevent:

Accidental underpricing

Data entry mistakes

Loss-producing sales

If you do not wish to use Margin Protection:

Set all margin percentages to 0.00

Assessment Rates

Some shops charge small fees for:

Shop supplies

Hazardous waste disposal

Environmental recovery

Incidental consumable materials

MLS 2026 allows these assessments to be calculated automatically.

You may specify:

Percentage applied to parts

Percentage applied to labor

Maximum charge allowed per workorder

Example:

3% assessment

Maximum $5.00 charge

If you do not use assessments:

Set all values to 0.00

Important Legal Note

Some states regulate:

Shop supply fees

Environmental fees

Hazardous waste charges

Certain jurisdictions require these items to be specifically itemized.

Always verify local legal requirements before enabling automatic assessments.

System Counters

MLS 2026 automatically assigns sequential numbers to:

Client accounts

Workorders

Receivable accounts

Vendors

Other internal records

New installations normally begin at:

1

However, you may specify different starting numbers if:

Transitioning from another system

Continuing previous numbering sequences

Matching existing accounting procedures

In most cases, the default values are acceptable.

Print Totals

Invoices may print totals using one of two formats:

Vertical Totals

Totals display in a column on the right side of the invoice.

Horizontal Totals

Totals display using horizontal lines and require less print space.

Neither format provides an operational advantage. The selection is simply based on:

Shop preference

Invoice appearance

Printing style

Choose the format that best fits your workflow and printed presentation.