Every customer must be assigned to a tax jurisdiction even if that customer has a non-taxable status.
Tax Jurisdictions
- The general assumption is that tax is charged based on the location where the customer takes possession
- For shipped orders this will be the Ship To location. For pick up or counter sales this will be the tax jurisdiction of the warehouse
- Go to Settings > Value Lists > Other Value Lists (M-Z) > Tax Jurisdictions to set up or edit Tax Jurisdictions
Tax Jurisdiction Tab Fields
| Buttons and Functions | Description |
| State | State associated with the tax jurisdiction. |
| Delete Jurisdiction | Delete selected tax jurisdictions. |
| Reset Jurisdiction Values | Refresh list of jurisdictions to last saved values. All unsaved changes will be lost. |
| Tax Jurisdiction | Name of tax jurisdiction. |
| Tax Rate (%) | Tax rate for the tax jurisdiction as a percentage. An entry of 10.5 is 10.5% tax. |
| Description | Optional comments describing the jurisdiction. |
| Tax by Warehouse | Tax jurisdictions with a “Yes” in this field will use the tax jurisdiction for the shipping warehouse (as indicated on the order). Be aware that the Shipping Method (Ship Via) also has an option to assign Tax by Warehouse. The Shipping Method designation takes precedence over the Tax Jurisdiction designation. If the Shipping Method is set to tax by warehouse, the tax will be calculated by the tax jurisdiction associated with the shipping warehouse.
You may wish to use this setting for customers that always pick up at your branch location, or for generic “CASH” customers for walk-in counter sales. |
| Split Tax | A “Yes” indicates the tax jurisdiction is “split” into sub-jurisdictions. The details are available on the Split Tax Tab. |
| Zip Code | Enter a zip code for this jurisdiction. The zip code will be used for automatic tax rate updates. |
| Nexus | Enter a check mark in this field to indicate that you charge tax for this jurisdiction. |
| Sort Sequence | You may organize the display sequence when looking up tax jurisdictions in various parts of the application. |
Split Tax Tab Fields
“Split” tax jurisdictions can include more than one “sub-jurisdiction” each with its own tax rate.
| Buttons and Functions | Description |
| State | State associated with the tax jurisdiction. |
| Tax Jurisdiction | Tax jurisdiction associated with the sub-jurisdictions. Total tax rate for the jurisdiction is also displayed. |
| Tax (%) | Tax rate for the sub-jurisdiction as a percentage. An entry of “10.5” is “10.5%” tax. |
| Description | Description for the sub-jurisdiction. |
| Remaining (%) | The amount left to apply to a sub-jurisdiction is shown as the “Remaining (%)”. If the tax rate for the jurisdiction is 12%, the total of all sub-jurisdiction rates must total 12% and the “Remaining (%)” must be “0.00”. |