Assigning Sales Tax Exceptions Groups to Products or Price Lines

You can assign a tax exception group to a product record. A product in a tax exception group can be always taxed, subject to a reduced tax, or never taxed. You can also assign a tax exception group to a price line record when the group includes all products in the price line.

The tax exception group setting for a product's price line is used only if the tax exception group setting for the product is blank.

Use the Product Tax Exception Groups screen to assign tax exception groups. The same screen is used for products and price lines. When you access this screen from Product Maintenance, the tax exception group assignments are associated with the product. When you access this screen from Price Line Maintenance, the tax exception group assignments are associated with all products in the price line.

To assign a tax exception group to a product or price line:

From the Files menu, select Product to display the Product Maintenance screen.
Display a product record.
Use the Tax hot key to display the Product Tax Exception Groups screen.

Note: From Price Line Maintenance, display a price line record and use the Tax Exceptn Grps hot key.

All tax exception groups display.

In the Always/Never column, for each tax exception group, choose one of the following:

Always – Indicates that the tax exception group is always taxable.
Never – Indicates that the tax exception group is never taxable.
Leave the field blank if the tax exception group does not apply to the product or price line.

Note: The setting on this column always overrides the customer's tax exemption status on the Sales Tax screen. For more information, see Adding Tax Exempt Numbers to Customer Records.

In the Reduced Rate field, do one of the following:

If the product is taxable with a reduced tax rate, enter Y.
If the product is not taxable with a reduced rate, leave the default N.

Press Esc to save the information in this screen.