There are mostly taxable items in inventory, however, a select number of items are non-taxable. How can we default those specific items to be non-taxable on all orders?
There are two ways to ensure items are not taxed:
- In Inventory Control / IC Items and Price Lists / Items - there is a Taxes tab for each item. If this tab is left blank, the taxes for the item are drawn from the customer's record. But if the tax authorities are entered on this tab, as being non-taxable (with the appropriate tax class), this will override the taxable settings for the customer. (on the flip side, if the taxes are entered on this tab as being taxable (with that tax class), and the customer record states non-taxable, the customer taxes will override) Tax Classes and Tax Rates are established in Common Services / Tax Services. (see Setting up Taxes for more info)
- The Taxes tab can be edited for all items in a specific category to be non-taxable (withthe appropriate tax class). Go to Inventory Control / I/C Setup / Categories. If all your non-taxable items can be assigned to the same category, set the taxes in this screen to be non-taxable. Any item created and assigned to this category will then, by default, have the taxes with the non-taxable tax class already assigned to them. This will only apply to new items created. Existing items will need to be updated manually as described in the first option.