Configuring taxes in the Orders & Inventory app will allow you to charge applicable taxes to orders based on criteria that you set. You have the ability to create tax classes, tax products, and tax zones to apply the appropriate tax to each order. To get started, open the Orders & Inventory app and click the Setup button on the left.
Tax Classes
Tax classes are categories of tax rates that help determine the tax to be applied to an order.
- Click on the Taxes dropdown menu on the left
- Click on Classes
- Click the Create Tax Class button
- Name the tax class
- The ID will populate automatically. You can change the ID before saving the tax class. Once you have saved your changes, you will not be able to change the ID.
- Save changes
Helpful hint: The tax classes you create will appear when creating a tax rate for a tax zone. You will have the opportunity to set a tax rate for each tax class that you create. See the Tax Zones section below for more information.
Tax Products
Tax products allow you to collect taxes to specific G/L accounts for association purchases.
- Click on the Taxes dropdown menu on the left
- Click on Products
- Click the Create Tax Product button
- Select a Business Unit
- Name the tax product
- The ID will populate automatically. You can change the ID before saving the tax product. Once you have saved your changes, you will not be able to change the ID.
- Save changes
Helpful hint: To modify a tax product's financial configuration, click on the $ icon to the right of the delete button. A green icon means a configuration has been set up. A gray icon means no financial configuration has been set up.
Tax Zones
Tax zones represent regions for which to apply specific tax rates. Tax rates are created within a tax zone, and you can have multiple tax rates per tax zone.
- Click on the Taxes dropdown menu on the left
- Click on Zones
- Click the Create Tax Zone button
- Name the tax zone
- The ID will populate automatically. You can change the ID before saving the tax zone. Once you have saved your changes, you will not be able to change the ID.
- Select the type of tax zone
- States
- Select one or more U.S. states
- Countries
- Select one or more countries
- Postal Code (a range of worldwide postal codes)
- You can enter multiple postal code ranges that can be used to build a postal tax zone
- Enter start/end values, and use Add Range to add additional ranges
- Rest of the World (a “catch all” zone for all locations outside of the defined zones)
- Override Tax Product (optional)
- States
Helpful hint: When tax costs are added to an order, the default product set in the tax configuration is used. You can override that product for this zone by selecting it here.
- Click the Add a Tax Rate button
- Name the tax rate
- Choose whether to override the tax product
- Set a tax rate for each of the tax classes you have created
- Save changes
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