• From: USA
  • Registered: 11/21/2008
  • Posts: 44

Topic: Multiple Tax Types for same item.

Hello,
I am trying to figure out how to use frontaccounting for sales in the USA.

We have to charge sales tax for items sold in our store at retail price, but when we sell those same items at wholesale prices we do not have to charge sales tax.

I noticed that when you set up a new product that it asks for the Tax Type.

In our situation and every other company in the USA that sells products both wholesale and retail, we have to charge different tax amounts on the same item.

How do we do this with Front Accounting?

In my mind it makes sense to have the Tax Type assigned on the Different Sales Prices and not on the item, incase there is more than one tax rate for that item.

The other case that this happens is if we have multiple store locations. Each location must charge a different tax rate even though they are selling the same product.

Please let me know how to best handle this with Front Accounting.

Thanks for the great work.

Dave

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Multiple Tax Types for same item.

Hello,
First you set up all you taxes in the Setup tab, Taxes section. Then you combine all the different Tax setup in the Tax Groups section.
Then you go into Item Tax Types and creates some Item Tax Types. Eventually remove some tax exempts (manufacturing or so). In your situation don't mark any exemptions.
Now you can set the Tax Group on your Customer Branches. Chose the right one for the branch. If a customer has different taxes, create a new branch and set another Tax Group on this and so on.

So you see, the Tax Group on the branch overrides the Item Tax Type (if no exemptions).

FA should be flexible enough to handle all situations.

/Joe