Sales Tax Overview

The sales tax program manages tax rates by assigning tax jurisdictions to the zip code areas where you do business. Tax jurisdictions can include tax rates from multiple entities such as state, county, and city. A customer's zip code determines their default tax rate.

Each tax authority to which you remit payments has a general ledger account set up.

Tax exception groups let you manage products and customers that are taxed outside the normal tax rates.

The National Sales Tax companion product includes a database of geocodes containing the state, county, and local tax rates for the entire country. Geocodes are assigned to each Zip+4 area. If you use this companion product, you need just one G/L account for sales tax and geocodes replace tax jurisdiction codes.