Add taxes to a vendor

You can create taxes, and assign them to vendors. To do so, you must have the necessary permission settings enabled.

After a tax is assigned to a vendor, it applies by default to orders, requests for quotes, and invoices created for that vendor.

  1. On your to-do list, click Manage Taxes.
  2. On the Manage Taxes page, click Create New.
  3. On the Create New Tax page, provide the requested information, paying special attention to the following fields:
    • Rate: Type the tax rate that will be used as the default tax rate. The tax rate can be altered manually when creating orders. If you do not enter a tax rate, users must manually enter the tax rate when creating orders.
    • Charge To: Select the inventory account option if the tax is to be added to the cost of the inventory (AUP). If the tax must be applied to an expense account, and recorded as a separate financial transaction, select the expense account to be charged.
    • Compound: Select whether the tax is compound. Non-compound taxes are calculated against the base amount. Compound taxes are calculated against the sum of the base price and any non-compound taxes. All non-compounded taxes are applied directly to the base price before compounded taxes are calculated.
  4. Click Next.
  5. Review your work, and click Next.
  6. Select the Vendor Search or Vendor Search By Type menu item.
  7. On the Vendor Search page, enter your search criteria and click Search.
  8. On the Vendor Details page, Taxes tab, click Edit Vendor Tax.
  9. On the Modify Vendor Taxes page, select a tax or taxes and click Next.
  10. Review your work, and click Submit.