Shop Supplies & Tax Calculations

Calculation Methods for Shop Supplies & Taxes

Standard Paths:

Cities

• EBIS 5 Path (Cities Shop Supplies) : Config > Admin > Cities > Select > Billing Options > Shop Supplies

• EBIS 5 Path (Cities Tax) : Config > Admin > Cities > Select > Tax > Main Info

Billing Profiles

• EBIS 5 Path (Billing Profiles) : Config > Billing > Billing Profiles > Select Profile > Main Info > Shop Supplies

Tax Profiles

• EBIS 5 Path (Tax Profiles) : Config > Billing > Tax Profiles > Select Profile > Main Info > Main Info

Advanced Paths (Specific Overrides):

Aircraft

• EBIS 5 Path (Aircraft Shop Supplies) : Aircraft Module > List > Select A/C > Billing Override > Shop Supplies

• EBIS 5 Path (Aircraft Tax) : Aircraft Module > List > Select A/C > Tax Override > Main Info

Customer

• EBIS 5 Path (Customer Shop Supplies) : Customer Module > List > Select Customer > Billing Override > Shop Supplies

• EBIS 5 Path (Customer Tax) : Customer Module > List > Select Customer > Tax Override > Main Info

Vendor

• EBIS 5 Path (Vendor Tax) : Vendor Module > List > Select Vendor > Tax Override > Main Info

There are 2 fundamental methods to choose from when calculating your Shop Supplies (Consumables) Fee & Taxes on Invoices

• Specific Amount
• Percentage of the Invoice

Specific Amount

This is the simplest of the 2 methods, a static dollar amount that you wish to add on top of the other Invoice charges to help cover costs of Shop Supplies (Consumables) & Taxes. 

Example : 

Specific Amount : $50

Shop Supplies = $50 (Independent Value)

Percentage of the Invoice

This is the most common method to use when choosing how to calculate what to charge to help cover the costs of Shop Supplies (Consumables) & Taxes on Invoices

 

There are 3 options when determining which Total amount is utilized for the Percentage of the Invoice method. (Not applicable to Taxes, you must choose which items are taxable individually)

1. Shop Labor
This is the Total amount of all the Labor billed for on an invoice whether or not it is Hourly or Flat Rated. OSR (Outside Repairs) Labor is considered Outside Labor and is not included the the calculation. 

2. Shop Labor & Parts

This Total amount is the same as the Shop Labor option above but also includes the total of parts sold on an invoice whether they were flat rated or not. OSR Parts are not included the the calculation.

3. All

This Total is the entire amount charged (taxes excluded). OSR Labor & Part charges are included

 

- After the selection of the Total amount above, you must determine which of the 3 Percentage Methods to use in conjunction with the Total to calculate the final Shop Supplies (Consumables) fee & Taxes to charge on an invoice. 

1. Standard Percentage

This Percentage Method is a static percentage of the Total you chose.

Example : 

Total = $15,000.00 , 

Standard Percentage chosen is 5% 

Shop Supplies fee calculation: 15,000 * .05 =  $750

 

2. Fluctuation Percentage

This Percentage Method allows you to choose between 2 different percentage rates. The rate that's activated is dependent on the Total. When the Total is below the amount input into the Shop Supplies Breakoff % field then only the Percent Below rate is activated. When the Total is above the Shop Supplies Breakoff %, only the Percent Above rate is activated

Example : 

Total = $15,000.00

Shop Supplies Breakoff % = $15,000

Percent Below (Breakoff %) = 12%

Percent Above (Breakoff %) = 10%

Shop Supplies fee calculation: 15,000 * .12 =  $1,800

 

3. Dual Rate Percentage

This Percentage Method allows you to activate 2 rates simultaneously. The Percent Below rate is applied to the amount of the Total that is from $0 all the way to the dollar amount you input into the Shop Supplies Breakoff % field. The Percent Above rate is applied to the remainder of the Total that falls above the Shop Supplies Breakoff % field.

Example :

Total = $15,000.00

Shop Supplies Breakoff % = $10,000

Percent Below (Breakoff %) = 12%

Percent Above (Breakoff %) = 10%

Shop Supplies fee calculation: 10,000 * .12 =  $1,200

                                                    5,000 * .10 = $500

                                                     1,200 + 500 = $1700

 

Shop Supplies Fee Caps 

If you want to configure a Shop Supplies fee based off of a Percentage of the Invoice and then set a cap to that fee, you can use the Dual Rate Percentage method.

Steps :

1. First decide what percentage of the Total you would like to charge for Shop Supplies by entering that value into the Percent Below field.

Example :  5%

2. Decide what you would like the Shop Supplies fee cap to be.

Example : $1,500

3. Then you must determine what Total is required for your Percent Below value to reach that cap. Input that amount into the Shop Supplies Breakoff % field.

^{Calculation: Cap / Fee Percentage}

Example : 1,500 / .05 = $30,000

3. Finally, set the Percent Above value to 0%

 

Explanation :

The goal was a Shop Supplies fee of 5% of the Total, but never charging the customer over $1,500 for the fee. Determined $1,500 was 5% of $30,000, and input that into the Shop Supplies Breakoff % field.Solidified the $1,500 cap by inputting 0% into the Percent Above field.