Tax exception groups identify products that are taxed outside the normal tax rules for selected customers. You can assign an exception group to a product, group of products, price line, customer, or group of customers.
For example, as a plumbing business you are not charged tax on tools purchased because you have a Resale Tax Exemption set up, meaning that when you resell a tool you charge tax at that point. You create a tax exception group called TOOLS and set the exception at the product level, tax code level, and the customer level. Standard hierarchy rules apply when the system checks for an exception.
For a tax exception to apply, you need to:
Create the group and define the locations to which it applies.
Assign the group to all customers or to the customer purchasing the product.
Assign the group to the product or price line being purchased.
Use the Tax Exception Group Maintenance window to define a tax exception group and the locations to which it applies.
Note: If you have the National Sales Tax Database companion product, the system displays geocode fields to which you can apply tax exceptions to selected or all customers.
To create a tax exception group:
From the Maintenance > Tax, Duty & Exchange Rates menu, select Tax Exception Group Maintenance to display the Tax Exception Group Maintenance window.
From the File menu, select New and enter a new Tax Exception Group ID at the prompt.
The system populates the Exception Group ID field with the new tax exception group code.
Select the Apply to Customers check box to apply the exception group to customers.
Note: If the tax exemption has expired, then the exception is not added to the Header of the order.
In the Zip Codes or State area, enter the zip codes or states to which you want the exception group to apply. If left blank, the tax exception group applies to all locations.
Note: If you have the National Sales Tax Database enabled, this field displays as Enter Geocodes or State. For more information, see Selecting by Geocodes.
Use the following options as needed:
Option | Function |
Enter Search Criteria field | Searches for state codes. Enter a state to display the corresponding list of areas in that state in the Tax Exception Group Search window. To further limit your search, enter a city or specific zip code in the Enter Search Criteria field in the Tax Exception Group Search window. Select the codes you want to include in the group using the check boxes and click Add. The system indicates how many zip codes you have added, click OK to confirm. |
File > Copy | Copies the locations defined for the currently displayed tax exception group to a new tax exception group. |
File > Delete | Deletes the currently displayed tax exception group. |
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