Accounts Receivable                                                   Sales Tax Overview

Sales Tax Overview (continued)

Below is an illustration of sales tax calculations on a customer invoice.

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1.  The Tax Group defaults from the site.  The Tax Group is linked to one or more Tax Tables that define tax rates, effective dates and specifies which Item Types are taxable.

2.  The Invoice Item determines whether the item is possibly taxable.  If the Item is flagged as taxable, the Item Type assigned to the Invoice Item is evaluated within the Tax Tables assigned to the Tax Group on the invoice to calculate and apply sales tax to the invoice.  If Parts are being invoiced, the setup of each part is assigned to an Invoice Item for use in determining tax-ability.

3.  All sales tax calculations are totaled for each unique Item Type and saved to the invoice.

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