Below is a brief explanation of the various ways to charge tax through "Customer Entry" in Accounts Receivable (6.1.1 fields 19 and 20).

Never Taxed

This refers to those customers that are not taxed on anything. An example is a Government Agency. A Customer is never taxed if listed as NT in the Tax Code field in "Customer Entry" (6.1.1 field 19). This will override all other defaults, including "Inventory Entry" in INVENTORY (5.1.1 field 5).

Non Taxable

This refers to those Customers that are not taxed, except on those part numbers listed as "Taxable" in "Inventory Entry" in INVENTORY (5.1.1 field 5). You may use a combination of methods. The different methods are:

Customer Entry - Tax Number (6.1.1)

You may use the Customer's Resale Tax Number (field 20) to determine the taxing of the Customer. The system will look at the Resale Tax Number field to determine if the Customer is Tax Exempt on those items that are not marked as Taxable in "Inventory Entry"  in INVENTORY (5.1.1 field 5).

1. In "POS Defaults & Comment", in SYSTEM MANAGEMENT (10.2.6.2 field 6), set the "Ignore Tax # on Tax Calc" to "N". This will allow the system to look at the Resale Tax Number to decide if the Customer is taxable. This affects all customers.
2. In "Customer Entry" (6.1.1 field 19) - Enter a Tax Code for this customer. This is used for those items listed as "Taxable" in "Inventory Entry" in INVENTORY (5.1.1 field 5).
3. In "Customer Entry" (6.1.1 field 20) - Enter the Resale Tax Number for the Customer. This will exempt tax on all items except those listed as "Taxable" in "Inventory Entry" in INVENTORY (5.1.1 field 5).

Tax Code Entry - Extra Tax Amount (6.1.7.1)

This is used for those Customers that are exempt for all part numbers, except those items marked "Y" in "Inventory Entry" in INVENTORY (5.1.1 field 5).

1. Enter 0 in the Percent Tax for those that are exempt from all but taxable items.
2. Enter the Extra Tax Amount Percentage to charge on items marked "Y" in "Taxable" in "Inventory Entry" in INVENTORY (5.1.1 field 5).

Tax Code Entry - Tax Change (6.1.7.1)

The Customer may be set up for a Tax Code that allows taxes only up to a certain dollar amount on one invoice.

1. Enter the dollar amount at which to change the tax percent, and press <ENTER>. (Field 5)
2. Enter the percent to subtract from the tax, if the taxable amount goes over the change amount, and press

<ENTER>. (Field 6)

Example: The tax rate is 6.5% for the first $5,000 of an invoice. After the $5,000, the tax rate goes to 6%. The Tax Code would be 6.5%, the Tax Change would be 0.5%, and the dollar amount to change the tax percent would be $5,000.

Taxable

This refers to those Customers that are taxed on all parts. The customer may still have a Resale Tax Number listed, for reference. You may use a combination of methods. The different methods are:

Customer Entry  - Tax Number Reference (6.1.1)

1. In "POS Defaults & Comment", in SYSTEM MANAGEMENT (10.2.6.2 field 6), set the "Ignore Tax # on Tax Calc" to "Y". The system will ignore the Resale Tax Number and use it just as a reference number. This affects all customers.
2. Enter in a Tax Code for this customer in "Customer Entry" (6.1.1 field 19).
3. Enter the Resale Tax Number (field 20) for the Customer, to keep in their record. This will not affect tax calculations.

Customer Entry - Tax Number - Blank (6.1.1 field 20)

1. If the Tax Number is blank, the system will look at the tax code and tax all items accordingly.

Customer Entry - Tax Code (6.1.1 field 19)

1. The customer's tax code will determine the amount of tax for the customer.

Tax Code Entry - Extra Tax Amount (6.1.7.1)

This puts an additional tax on those items marked "Y" in "Inventory Entry" in INVENTORY (5.1.1 field 5).

1. Enter the Percent Tax (field 2) for all items, and press <ENTER>.
2. Enter the Extra Tax Amount Percentage (field 4) to charge on items marked "Y" in "Taxable" in "Inventory Entry", and press <ENTER>.

Tax Code Entry - Tax Change (6.1.7.1)

The customer may be set up for a tax code that allows taxes only up to a certain dollar amount on one invoice.

1. Tax Change Amount(field 5) is the amount of tax to subtract from the percent tax on an invoice. Enter the dollar amount at which to change the tax percent, and press <ENTER>.
2. Enter the Tax Change Percent(field 6) to subtract from the tax, if the taxable amount goes over the change amount, and press <ENTER>.

Example: The tax rate is 6.5% for the first $5,000 of an invoice. After the $5,000, the tax rate goes to 6%. The Tax Code would be 6.5%, the Tax Change would be 0.5%, and the dollar amount to change the tax percent would be $5,000.