Transaction includes a sub-function called Sales Tax Estimation, that lets you estimate the sales tax for selected transactions. Sales tax estimation is based on manually building the Sales Tax Rate table and applying these rates to a range of transactions.
To estimate sales tax, select Sales Tax from the Transaction View drop down box.
The Sales Tax Rates view lets you enter a sales tax rate for:
- A single rate (city, state, postal code)
- An entire city
- An entire state
- A single postal code
The rates entered in the sales tax rate table are then applied to selected transactions in order to estimate the sales tax for all transactions in the date range specified.
Estimated sales tax is not applied to transactions that are sales tax exempt, already have a sales tax from the point of sale, or are already updated manually by the user.
Later, we'll discuss how to exempt transactions from sales tax estimation.
Update the Sales Tax Rate Table
The first step in estimating sales tax is for you to update the Sales Tax Rate Table. When you enter Sales Tax Estimation, the Sales Tax Rate Table displays. You can sort the Sales Tax Rate table by city, state, postal code, or sales tax rate.
Click the Tax Rate value to the right of a city-state-postal code combination to update that Tax Rate value.
The Transaction Sales Tax - Detail page appears.
Type the sales tax rate in the Tax Rate text box (format: 00.0000).
Then, you can apply this sales tax rate to a single rate (city, state, postal code combination), the entire city, the entire state, or a single postal code by selecting the appropriate button.
In the example above, we have entered the tax rate 8.332%. We then applied this rate to a single rate.
Click Update to save your changes.
Complete all other updates to the Sales Tax Rate table. When you're finished updating the table, you are ready to apply these rates to a range of transactions (maximum of 31 days).
But first, let's look at how to exempt certain transactions from sales tax estimation.
