The EBMS system allows one or more sales tax rates to be applied to a sales invoice. The tax rate(s) are determined within an invoice using the following criteria:
1. The sales tax rate will be determined by the shipping address within a sales invoice’s Ship To tab only if the Ship Via setting within the invoice indicates that the product is being shipped. See the Calculating Freight Charges on Sales Invoice section for more details on the Ship Via setting.
The city, state, and country taxes are derived directly from the shipping address entries. The county is determined from the country setting within the zip code table. See the System Options section to view or change the zip code table.
2. All invoices that are not being shipped will be charged the sales tax rate derived from the company address. See the Company Information - General Tab section to view or change the company address.
3. The sales tax rate can be manually set within an invoice. See the Changing the Tax Rate Within a Sales Invoice section for more details.
All applicable sales tax rates must be setup within the sales module before any sales tax can be calculated. Only the sales tax tables that are collected by the company should be entered into the system. For example one or more state, county, or city sales tax rates may apply to your business. The software will determine which tax tables are applicable based on the shipping address (if items are shipped) or the company address for orders that are not shipped. The current state sales tax rates can be found at http://www.salestaxinstitute.com/sales_tax_rates.jsp. Contact an EBMS representative or the company accountant for the local sales tax rates. Additional tax information can be found at http://www.aicpa.org/yellow/yptstax.htm.
Note: It is very important to setup the sales tax rate tables properly before proceeding with the sales invoice processing within EBMS.