Tax Code Defaults

Tax Codes can be applied to both the Customer as well as the Product. These default selections are enforced when creating a new order, and will set the tax code depending on on the selection in the Portal Settings. To review: The Portal Settings allow you to determine the default tax selection that is applied to your orders, based either on the Customer or the Product. When making this decision, be mindful that the option that is not selected will act as an override to ensure that tax is being applied as needed.

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Default Selection Review

Selecting Customer changes the override option to Product

Selecting Product changes the override option to Customer

Selecting either option will change the override listing next to the drop-down menu.

• Customer: Selecting this option will use the Tax Code applied on the Resources>Customer record. The Product acts as the override, meaning if the Customer has no tax code, or a code that does not match the Customer, it will apply the Product tax instead (more info below).

  

  Customer enforced tax codes are applied within the customer record.
• Product: Selecting this option will use the Tax Code applied to the Product in the Resources>Products & Pricing>Product Setup>Product Location record. The Customer acts as the override for this option, meaning if the Product has no tax code, or a code that does not match the Customer, it will apply the Customer tax instead (more info below).

  

  Product enforced tax codes are applied at the products assigned Location.

Selecting a default option will apply the desired tax when an order is created for the customer or when the product is added to an order. This can be changed when editing the product, but it is something to keep in mind when initially creating a new order for your customers.

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Best Practices and Suggestions

Exempt Customers

• If your customer(s) are exempt from being taxed, creating an EXEMPT tax code and applying it to the customer record while leaving the product specific tax as either blank or NONE will ensure your customers are only taxed via the order as needed. This can be done after the order is created and products are added with tax applied.

  • Create "Exempt" Tax Code.

  • Apply "Exempt" Tax Code to the necessary customer(s).

  • Add Products to any order and apply necessary Tax Codes as needed to any product(s) on the order after the order is created.

    • This step is optional and will enforce the tax applied to the order product only, not the entire order.

Non-Exempt Customers

• If your customer(s) are not exempt from being taxed, creating the appropriate Tax Codes and either applying it only to the customer record with the product blank, NONE, or with the desired tax code will ensure they are taxed appropriately according to which option is needed, or which override is enforced.

  • Create the needed Tax Code(s).

  • Apply the necessary Tax Code to the customer(s) and/or product(s)

  • Adjust the tax on the order product after the order is created to the desired or appropriate tax.

    • This step is optional if the intended tax code is being enforced.

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Additional Note

As of September 1, 2024, our Web Portal Pricing Update can be managed in the Ticket Query as well as the New Billing menus. This includes options to edit the tax code per ticket, but also an option to change the tax available on the order products.

• Leaving the Reprice ☑️ option selected when creating a batch will re-apply the pricing and tax to the edited ticket as it exists on the order product.

The Reprice checkbox can be found on the New Billing menu next to the batch [✔Assign] button.

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If you have any additional questions or need further explanation on Tax Codes that are not covered in our documentation, please contact us at 865-219-2980 or [e-mail].