Accounts Receivable                                                   Sales Tax Overview

Sales Tax Overview

Sales tax is automatically calculated on all invoice types depending on your company settings within the SedonaSetup application.   If a Customer's Site is flagged as exempt; i.e. if there is an entry in the Tax Exempt field of the Site, no tax will be calculated for any invoice created for the Site.  The information contained in this topic section will explain how sales tax is determined and applied to an invoice.

Invoice Items

Every invoice (or Credit Memo) created contains a least one Invoice Item; whether it is manually selected on the Items tab of the invoice body or by selecting an inventory Part on the Parts tab of the invoice form.  Inventory Parts are linked to an Invoice Item within the setup for each individual Part.

Each Invoice Item is linked to an Item Type in the Invoice Items setup table in SedonaSetup.  In the Tax Table setup, Item Types are flagged as taxable or not taxable.  Sales tax is determined and calculated by totaling all amounts by Item Type, and then sales tax is applied to each unique Item Type.  The application then totals all sales tax for all unique Item Types for the invoice.

All sales tax calculations are based on the settings in several SedonaSetup tables.

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