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Why would an "exempt" non-stock item charge sales tax? I tried to change the tax calculation from "ON DOCUMENT AMOUNT" to "ON ITEM AMOUNT" and that did not work.
Tami, take a look at how you have defined the tax category "EXEMPT". Are there any Tax ID's defined within it? How are your 'TAXES' defined?
@shawn-slavin
Hello! Yes, the category EXEMPT has Tax ID's defined within it (but charging 0% tax). I have a tax with a corresponding tax zone for both exempt and taxable categories. This is so that I can track the SALES for each zone. This was how Acumatica suggested I set up my taxes.
How many Tax Categories do you have created? Can you share screenshots of the TAx Category setup for EXEMPT and one other taxable Category?
Also, can you include two from your TAXES set up for EXEMPT and the other included above?
Thanks,
@shawn-slavin
Sure. 🙂
The attached file contains the screen shots, please let me know if I've missed anything.
Thank you.
You have taxable Tax ID's in your Exempt Categories and Exempt ID's in your Taxable Categories.
I have always kept them separate and then create different tax Reporting Groups.
@shawn-slavin
Yes, I was advised to set them up that way by Acumatica. So that I can report both exempt and taxable sales. Also, it affects the invoicing if I don't have both taxable and exempt categories for each tax.
So theoretically this is why my nontaxable items are included in the tax calculations?
@tami-lynn-hoyt
I think so but I could be wrong. We only set up customers with very simple tax scenarios with the standard tax tools in Acuamtica. If they have state-wide sales in a destination-based state or multi-state sales, we direct them to use Avalara to remove the complexity.