In order to assign a tax group to your items navigate to Order Entry > Setup > Items and select the item you wish to setup by clicking the ‘Edit’ text on the left of the line. Scroll down to the Sales section of the Item Information screen and ensure you already have the Taxable checkbox checked, then use the Item tax group dropdown to select the proper Item tax group. If the group you require isn’t available as an option, feel free to add a new group by clicking ‘Add’, keying in the name for your new Item tax group and then pressing save.
Once you have created your item tax group, select it from the dropdown box and save your inventory item. Note: As previously stated, Item tax groups can also be set up in Inventory Control > Setup > Items > Tax Groups.
Although our example only shows one item tax group on the dropdown there are many instances where you will have multiple. For example some items might only be charged regional sales tax while others might be charged federal sales tax as well. These differences in taxation warrant separate Item tax groups.
Note: This process must be completed for every Inventory Item you wish to charge tax on.
Tax authorities are used to track how much tax is collected for various agencies. For example the City, County, State, Province or Country that you are collecting tax on behalf of are all separate tax authorities. If you have already setup Accounts Receivable Advanced Taxes you have probably already set up Tax Authorities and can most likely skip this step.
Tax Authorities are found in Order Entry > Setup > Tax > Authorities. Please note that Order Entry and Accounts Receivable share Tax Authorities so you may already have some Tax Authorities listed here. If you don’t see the Tax Authority you require, click ‘Add’. There are two required fields on this form, Name and Vendor. Please note that the value in the Name field will be saved as the unique key for this record and you won’t be able to change it once you save the record. The Vendor field is a dropdown where you link this tax authority to the vendor whom you will pay the taxes to. If you wish to create a hierarchy of tax authorities, this can be done using the Parent Authority dropdown box.