Sales Tax Codes for Customers when not all customer jobs would have the same code

LWill1 · ‎July 09, 2025

I'm trying to get our sales tax codes and sales tax items set up so that I can differentiate types of sales that are taxed differently for city business & occupation returns vs state sales tax. Tax Codes are pulled from customer settings and line items (which may not be the same,) and Sales Tax Items are used for the rates to charge on taxable items.

Currently we have tax codes of Taxable, Non-Taxable and Out of State.

I have a customer set up as Out of State (which is true for most sales to this customer,) however, for one job, he has taxable and non-taxable items on an invoice, and this job is partially in state and partially out of state. The tax item on the invoice charges the correct amount for the taxable items on that invoice.

How can I create a combination of codes and items so that when I pull a Sales Tax Revenue Summary I don't wind up with sales that were correctly charged tax classified under non-taxable or out of state sales?

It seems to be the Customer Tax Code that is most of the issue as it can't be set up at the job level. Not all jobs for a customer will have the have the same code but changing it for an invoice changes it for the customer regardless of which job the work is for.

Hopefully someone can understand this explanation of the issue well enough to provide suggestions. If so, I'd appreciate your help!

Ivan_G · ‎July 09, 2025

I appreciate the comprehensive details you've shared regarding your query, LWill.

You can create a Sales Tax Group and use it when generating transactions for the job with partial taxes in and out of the state. This feature allows users to create a tax code consisting of multiple tax rates for specific states/addresses.

Refer to these steps to proceed:

Open your account.
Go to the Edit menu, then Preferences.
Select the Sales Tax tab, then Company Preferences.
Click the dropdown arrow under the Your most common sales tax item section and then Add New.
Choose Sales Tax Group under the Type field and enter the Group Name/Number.
Input the Tax Item accordingly.
Once done, hit OK, then OK again to save.

After that, you can record the designated transactions for each job and manually apply the previously created Sales Tax Group where it applies. Just click the dropdown field under the Tax column and select the tax group on the list.

Please know that it's still best to seek assistance from a tax professional. Doing so ensures you can accurately manage your sales taxes according to your state's policy.

If you have more questions, leave a reply below.

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Sales Tax Codes for Customers when not all customer jobs would have the same code

Sales Tax Codes for Customers when not all customer jobs would have the same code

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