Change the tax exemption
When to use this procedure
Use this procedure to apply a tax exemption type to the entire invoice or to override the exemption status of a single item on the invoice. Tax exemption types are set up as 1800 series system categories.
This procedure applies only to standard sales, not quick sales.
Example of use – 1
A charitable organization buys a stock of sewing supplies from your store for their annual quilting bazaar. Under state laws, their organization has full tax exemption for purchases made that support their charity. In this situation, you would add each item to the invoice and apply a single tax exemption to the entire invoice using the Expt box.
Example of use – 2
During the annual tax-free shopping weekend, certain items of merchandise may be sold without charging tax, depending on local regulations and requirements. In this case, recreational equipment with a value of $50 or less is tax exempt. A customer in your store purchases a baseball glove, batting glove, and a gun. Only the baseball glove and batting glove are tax exempt; you right click on each of these items in the Items Sold grid to apply the tax exemption without applying it to the entire invoice.
Steps to complete
Select from the options below to change the tax exemption of your invoice or of an individual item.
Assign whole-invoice exemption
- On the Sales Invoice window, click in the Expt box and select an option from the drop-down. The exemption status is applied to all items on the invoice.
- On the Layaway window, click in the Exempt box and select an option from the drop-down. The exemption status is applied to all items on the layaway.
Assign single item exemption
- On the Sales Invoice window, right-click an item in the Items Sold grid and select Flag as Tax Exempt. The exemption status is applied to the item.
Remove whole-invoice exemption
- On the Sales Invoice window or Layaway window, right-click in the Expt box and select Clear Tax Exempt Type. The exemption status is removed from the invoice.
Remove single item exemption
- On the Sales Invoice window, right-click an item in the Items Sold grid and select UnFlag as Tax Exempt. The exemption status is removed from the item.
