entrée will allow you to define up to twenty specific customer territories or industries to be taxable. The purpose of these codes is to provide greater flexibility as to who is taxable when purchasing this item.

 

•When tax codes are defined, only customers that have an industry or territory code that match the defined tax codes for the item will be charged tax.

 

•To add or edit the tax codes, click the Edit Tax Codes button.

 

A typical situation where tax codes could be needed is when selling in different states or counties. If one state or county collects tax, but others do not, a tax code could be defined for the customers doing business in the state or county that is charging tax. The following steps would be taken under this premise.

 

1.Enable the Taxable option for the item.
2.Define a Tax Code for the state or county that requires the tax.
3.Enter the tax code in Customer File Maintenance for each customer doing business in the taxable state or county. The tax code will be entered in either the Territory or Industry field, depending on the Code Type of the tax code.
4.Define the appropriate tax rates for the customer in Customer File Maintenance.