How to enter a tax profile?

Navigate to the Tax Profile module. From the main menu: Accounting > Tax Profiles.

  1. Click New at the top of the screen.

  2. Enter a name for the tax profile. Give it a meaningful name like "In State" or "Out of State" or "Ohio".
  3. Enter a code in the Code field. This is what users can type into drop-down lists. No two tax profiles can have the same code.
  4. The Start Date and End Date are optional. If, for example, you know that a tax rate is going to be changing effective January 1st, you can set the End Date on the current tax profile to December 31st and it will trigger a notification reminding you that the profile is expiring.
  5. Enter a description of the tax profile (optional).
  6. In the Tax Setup section, enter a label for each taxing authority that will share in the total tax. As you enter the label under Tax Setup, you will see the labels appear as column headers under the Default Rate section.
  7. Assign each taxing entity to a general ledger account. These accounts will act as the holding buckets for the amounts you collect as you process order payments.
  8. Under the Default Rates section, enter the percentage each entity will receive of the total tax collected under the profile. Keep in mind that each type of category can be taxed at different rates. For example, a service may be taxed at a different rate than a tangible item. Check with your taxing authorities for actual rates.
  9. Under the Exceptions section, you can list specific categories that do not conform to the default rates entered above. The exceptions can carry their own rates, or they can be exempt altogether.
  10. When ready, click Save.
  11. When the confirmation dialog appears, click Activate to save and give the system access to the new tax profile. Click Not Yet to save the record and leave it pending.

See Also

How to link a tax profile to a company record

How to override a tax profile at the order level

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