Tax Rate Exceptions
Use the Item Tax Rate Exceptions window to assign special tax rates to products that you ship to specific authorities.
You can only define a tax rate exception for items that are invoiceable and have a status of 'Active.'
Prerequisites
To define a tax rate exception:
1. Navigate to the Item Tax Rate Exceptions window.
2. Choose to create an Exception By Item or Range.
3. If you chose exceptions by Item, enter the Item to exempt or select from the list of values.
If you chose exceptions by Range, enter the Category Set, User Item Type, and a range of Items.
4. To query existing exceptions for this item or range, choose Find.
5. Enter the range of Effective Dates for this exception. The default start date is today's date, but you can change it. If you do not enter an end date, this exception will be valid indefinitely.
6. Enter the authority Location for which you want to define a tax exception for this item or range of items. You can choose to selectively enter values for the different segments in the authority. For example, to enter a tax exception for the entire state of California, you would enter a value for California in the state segment, and leave all the child segments blank. To enter the exception for a particular county within California, enter the state and county values, but leave the city segment blank. (This assumes that you are using state-county-city as your location flexfield structure.)
Note that you cannot leave a segment blank if its child segment has a value assigned to it. For example, if you have assigned a value to city, its parent segments county and state must have values assigned to them. You cannot update the location flexfield for an exception once the exception has been used within Receivables.
7. Enter the Tax Rates for each location in your authority.
You can choose to leave the tax rates blank for one or more locations of your authority if you do not wish to override that location's default tax rate. For example, if your state is California and you do not wish to override California's default tax rate, leave the state tax rate blank. You cannot update the tax rate flexfield for an exception once the exception has been used within Receivables.
8. Choose a Reason for creating this tax exception. You can define tax exception reasons in the Receivables QuickCodes window by specifying the QuickCode Type 'Tax Rate Exception Reason.' See: Defining and Updating Receivables QuickCodes.
See Also
Calculating Tax
Tax Exemptions
Tax Exceptions Listing
Define items