Sales Tax Overview

The sales tax program manages tax rates by assigning tax jurisdictions to the zip code areas where you do business. Tax jurisdictions can include tax rates from multiple entities such as state, county, and city. A customer's zip code determines their default tax rate. Each tax authority to which you remit payments has a general ledger account set up.

Use the sales tax jurisdiction codes functionality to manage tax rates by assigning tax jurisdictions to the zip code areas where you do business. Tax jurisdictions can include tax rates from multiple entities such as state, county, and city. A customer's zip code determines their default tax rate. Sales tax functionality is located under the Files menu, and under the Orders menu, in Reports.

Sales tax exception groups identify products that are taxed outside the normal tax rules for selected customers. You can assign an exception group to a product, a group of products, a customer, or a group of customers.

Use sales tax reports to gather information on the taxes your company owes, by branch or by jurisdiction, see which tax accounts and sales orders had overrides applied to their taxes, and to gather information about sales orders that have had changes made to the tax-exempt code. You can also run a report for taxes owed to the state of New York.

The Eclipse National Sales Tax companion product includes a database of geocodes containing the state, county, and local tax rates for the entire country. Geocodes are assigned to each Zip+4 area. If you use this companion product, you need just one G/L account for sales tax and geocodes replace tax jurisdiction codes.