Tax is automatically calculated based on the tax profile associated with an order. To determine which tax profile to use, aACE will look to the postal code associated with the shipping information. This is because taxes are based on where the goods are going, not where they originate.
- If the delivery type is set to "Pick Up", then the tax profile associated with the postal code of the order's office is used.
- If the order is going to be shipped and the ship to company has a tax profile established in the Finance/Accounting tab of the company record, then that tax profile is used.
- If the order is going to be shipped and the ship to company does not have a tax profile established in the Finance/Accounting tab, then the tax profile associated with the ship to company’s postal code is used.
- If none of the above result in a tax profile, then the default tax profile is used.
Your aACE solution should be set up with postal codes with associated tax profiles to ensure that taxes are properly calculated. It’s less common, however, to have tax profiles associated with a company record; an example would be tax exempt organizations, which would need their exemption accounted for in every transaction.
Note that an order's tax profile can be manually overridden by clicking the Tax drop-down field or the selector at the bottom of the order.
How to associate tax profiles with postal codes
- Navigate to System Admin > Postal Setup and click on the Postal Codes tab.
- Use the search function at the bottom to find the postal codes you wish to associate with a single tax profile. For example, to find all New York postal codes, select "NY" in the State drop-down box and click Search.
- From the Actions menu, select "Update Tax Profile for Postal Codes in List". A dialogue box will ask you to confirm; click "Update".
- Choose the tax profile you want to associate with this list of postal codes from the selector.
- A dialogue box will tell you how many postal codes have been updated with the new tax profile.