Customer Setup - Taxing overview

We recommend that you specify the customer’s normal taxing status and information. If required, you can override the tax information during Sales Order Entry.

To enable taxing, you must define your tax method and interface. Then, typically, you must configure your company, licensing, table code values, currency, addons, tax master, customer, warehouse, product, and vendor records.

These settings determine whether:

• some views and fields are displayed to collect or adjust additional tax information
• how that amount is applied to an order

The fields displayed in this view may vary depending on the Tax Method and Tax Interface selected in SA Company Setup-Taxes.

For each order, the taxable status and rate settings are validated in multiple functions and tax is automatically calculated for the sales order. The multiple functions include: SA Company Setup-Taxes, SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup, Customer Setup-Taxing, Customer ShipTo Setup-Taxing, and Product Warehouse Product Setup-Taxing. For example, the customer tax jurisdiction’s rates are applied to a sales order depending on:

• Origin/Destination code in Product Warehouse Description Setup for the shipping warehouse
• whether the ship to location is in another state

If either the customer or product is non-taxable, taxes are not calculated.

If both the customer and product have a variable taxable type, the line item is taxable unless an exemption record exists in SA Exemption Table Setup. You should create exemption records for situations where the customer is generally taxable, with a few exceptions. If a customer is generally required to pay sales or use tax on most of your products, select Taxable in Customer Setup-Taxing. For those few products on which they are not required to pay taxes, set up exemption records in SA Exemption Table Setup.

You can set up a customer with up to five tax jurisdictions: State, County, City, Other 1, Other 2. Based upon where the customer resides, taxes must be remitted to various taxing authorities. Set up the jurisdictions and their rates in the appropriate tax setup: SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup.

See Taxable status.