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Enter state-, county-, and city-specific sales tax information. Create a sales tax record for each state in which you do business. If you do business in various counties within a state, a unique sales tax record is required create a unique tax record for each county. This process also is true for applies to unique city tax rates as well.

Example: You do business in the cities of Highlands and Franklin, both in Macon County, North Carolina. You should create two sales tax records, both showing North Carolina and the appropriate state sales Tax Rate and Macon County with the appropriate county Tax Rate. The City Names will show the two different cities and the city Tax Rate should be entered enter, even if the rate is the same for both cities.

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  1. Go to Receivables > Sales Tax Setup and click New.
  2. Enter a Sales Tax Code. Sales tax codes are alphanumeric and can be up to 20 characters long. Once these codes are savedsave, these they can be used in Customer Setup (to assign a default for each customer) and when entering/updating invoices.
  3. Select the check boxes that are appropriate for the sales tax code being entered.
    • Sales Tax Exempt
      • The selected entity does not charge sales tax.
      • The sales tax information is removed from leaves the record.
    • Tax Code Inactive
      • Select Tax Code Inactive when it should not be usedto deactivate the code.
      • Inactive codes do not appear as a choice when entering or updating invoices. 
    • Shipping Tax Exempt
      • The selected entity does not charge sales tax on shipping charges.
  4. Enter information for the recording of sales tax. When entering multiple records for a state or county, repeat the appropriate higher-level informationdetails.
    • Name
      • Enter a name for the sales tax.
    • Tax Rate
      • Enter the tax rate as a decimal.
        • A Enter '0.06' for a tax rate of 6% should be entered as 0.06.
    • Maximum Taxable
      • If there is a maximum amount that is subject to this county's or city's sales tax, enter that amount. 
  5. Save each record before entering the next.
  6. To delete the record, click on it and press Delete. If the sales tax is in use, it cannot be deleted. this process will not be allowed.
Note
While the Name and Tax Rate for a State or County does not have to be entered is not required for the City tax information to be used, it is recommended that all preceding entities be given names, even if the rates (or maximums) remain zero.

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