Taxability Codes are used to group types of offerings together to determine whether an item is taxable, taxable with exceptions, or tax exempt. A taxability code is assigned in assemblies and used for calculating applicable sales tax.
Note: The system comes with default taxability codes for Goods, Service, and Tax Exempt, however additional taxability codes can be added.
Table of Contents
- Creating Taxability Codes
- Customize Taxability Codes
- Set Taxability Codes Inactive or Reactivate/Delete
Navigate to Settings / Accounting / Taxability Codes.
Creating Taxability Codes
1. Click the Taxability Code button (or the add button) to create a new code.
2. The Add Taxability Code dialog will open.
a. Name – Enter a name that will identify the type of tax code. This field is required.
b. Tax Treatment – Select the treatment that determines the taxability of the code (for example, Taxable or Tax Exempt). This field is required.
c. If Exempted Tax Items (or Excluded Tax Items) is available, use it to specify tax items that are excluded from this code. This is typically used when a code is taxable with exceptions.
3. Click Save.
Customize Taxability Codes
1. Navigate to Settings / Accounting / Taxability Codes.
2. Click the row for the code that needs to be customized.
3. The Edit Taxability Code dialog will open. Update the fields as needed.
a. Name – The name that identifies the type of tax code.
b. Tax Treatment – The treatment that determines whether the code is taxable, taxable with exceptions, or tax exempt.
c. Exempted Tax Items – If available, add or change exempted (excluded) tax items for codes that are taxable with exceptions.
4. Click Save.
Set Taxability Codes Inactive or Reactivate/Delete
Set a code inactive
1. Navigate to Settings / Accounting / Taxability Codes.
2. Find the code in the list and click the Actions button for that row.
3. Click Set Inactive.
Reactivate or delete a code
5. To reactivate a code, open the filter options and enable Include Inactive so inactive codes are visible.
6. Find the inactive code in the list and click the Actions button for that row.
7. Click Set Active to reactivate the code.
8. To delete a code instead, follow steps 5–7 but click Delete from the Actions menu. Only codes that are not system defaults and are eligible for deletion can be deleted; the Delete option may be disabled for some codes.