How to: Set Up Sales Tax Groups

A tax group represents a group of inventory items or resources that are subject to identical tax terms. Examples of typical tax groups include food items, medicine and medical supplies, and automobile fuel. These groups are usually determined by criteria set up by tax authorities.

Tax group codes must be assigned on the Resource, Item, and G/L Account cards. Tax area codes must be assigned on the Customer, Location, and Company Information cards. For more information, see How to: Enter Company Information.

To set up a sales tax group

1. In the Search box, enter Tax Groups, and then choose the related link.

2. In the Tax Groups window, on the Home tab, in the New group, choose New.

3. In the New - Tax Groups window, fill in the fields as described in the following table.

   Field	Description
   Code	The code that you want to assign to the tax group. You can enter up to 10 alphanumeric characters. For example, you can enter the tax group code MEDICINE for medicines and medical supplies.
   Description	The description of the tax group.

4. Choose the OK button.

The tax group is assigned on the Invoicing FastTab on the Item and Resource cards. In general ledger accounts, the tax group is assigned on the Posting FastTab. For more information, see How to: Set Up Items, How to: Set Up Resources, and How to: Set Up General Ledger Accounts in the Chart of Accounts Window.

See Also

Tasks

How to: Set Up Sales Tax
How to: Set Up Sales Tax Details
How to: Set Up Sales Tax Jurisdictions
How to: Set Up Unrealized Sales Tax and Sales Payment Discounts
How to: Set Up Use Tax and Purchase Tax

Reference

Sales Tax Group List

Other Resources

How to: Set Up Items
How to: Set Up Resources
How to: Set Up General Ledger Accounts in the Chart of Accounts Window
How to: Enter Company Information