Setting Up Item Tax Districts
To set up tax districts by item, you must first set up categories. You use the Tax Code box in the Item Settings tab to enter a user-defined code for item tax categories. You can tax a different percentage based on the type of item. For example, you might want to tax non-processed food items at a different rate than processed food items.
In the Item database, select the item for which to set the category.
In the Item Settings tab, enter a user-defined code in the Tax Code box.
Click the Save button to save your changes.
Next, set up item tax districts.
From the Master Menu, click Databases, then click Item Tax Districts.
The Item Tax District dialog box opens. Click Add.
The Item Tax District Detail dialog box opens. In the From Tax District box, you can enter the tax district or click to select the tax district.
In the Item Tax Code box, enter the tax code that you specified in the Tax Code box in the Item Settings Tab.
In the Replacement Tax District box, enter the replacement tax district or click to select a tax district. The item tax district entered in this box will be the tax district used for any item that has the combination of the From Tax District and the Item Tax Code entered here.
Click Apply.
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