Configuring product lines for tax interface

Use Product Line Setup to save time when you add new products from the same vendor product line. The Product Line Setup-Tax view provides a Tax Exempt Type field. Specify the AvaTax or Sovos GTD tax code in the Tax Exempt Type field. Whenever this product is sold on in a sales order, the Tax Exempt Type value is loaded into the data sent to Sovos GTD or AvaTax, where that value can be used in the tax calculation.
Note: 

.If you use Vertex Cloud, be aware that although Vertex has tax codes, they cannot be passed into Vertex Cloud through the interface. The Vertex codes must be applied in a mapping set up in the Vertex Cloud administrator portal. Any value entered in the Tax Exempt Type field is not used in the calculation.

This value on the product line is used as a default value for Product Warehouse Product Setup when a new Product Warehouse Product Setup record is created in the warehouse of the product line with the vendor of the product line. Refer to the Sovos GTD or AvaTax documentation for a listing of product codes.

  1. Select Product > Setup > Product Line .
  2. Select the product line that maps to the appropriate product code.
  3. Click Edit.
  4. Select the Tax view.
  5. In Tax Exempt Type, specify the appropriate product code.
  6. In Non Tax Reason, if this is a non-taxable product, select a reason.
    Note: The non-taxable reason code you select must match the reason codes associated with AvaTax, Sovos GTD, and in your STEP exemption certificate records. This code defaults during sales order entry, but can be overridden.
  7. Click Save.
  8. Repeat steps to set up additional product lines.