Jason Zander
07-29-2009, 05:32 PM
This tutorial will show how to create a new tax exempt tax code, assign it to a product line, and associate that product line to a few categories. This will allow you to have certain items be tax exempt. For this example, we will assume that all t-shirt (men's, women's, and children's) are tax exempt in the state we are in.
The first thing to do is create your Tax Exempt tax type.
The following is a snippet from an article covering more about Tax Codes:
http://forums.resaleworld.com/showthread.php?t=2894
To setup Tax Codes, go to Tools >> Tax Codes...
<img src="http://resaleworld.com/videos/jason/2009-07-22_1752.png">
From here, we can edit any existing Tax Types as well as Add or Delete the specified Type.
When clicking on Add Type, you will be presented with a few screens. The first will ask for the Description of the Tax Type. In this first example, we will create a new tax type for non-taxable items. After you type in the description, you will be shown the Tax Detail screen. Here is where you enter a description for the Tax Detail as well as enter the percentages.
<img src="http://resaleworld.com/videos/jason/2009-07-22_1756.png">
Since this Tax Type is only for non-tax items, this one is complete. Just click the Save button and you will be back at your Tax Code screen.
Here is what that Tax Type looks at when complete
<img src="http://resaleworld.com/videos/jason/2009-07-22_1800.png">
Now that we have our Tax Exempt Tax Type (called No tax), we need to associate this with a certain product line.
This is done via the Category Editor. Go to Tools >> Category Editor. Then click the Product Lines tab at the top.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1710.png">
We will now create a new Product Line. Click the Add Product Line... button at the top left. We will call ours T-Shirts.
When you click the Add Product Line... button, a new dialog box will appear. The Description will be, well, the description; ours will be T-Shirts. The Default Tax Type will be our newly create No tax Tax Type.
The GL accounts are for Quickbooks exports. Please ask your accountant for that information.
The final Add Product Line box looks like this.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1715.png">
Now we need to associate this Product Line to specific categories. Go back to the Categories tab in the Category Editor window.
For our example, we need to locate all of the categories that we would use for T-Shirts. My categories are going to be as follows:
Children's Apparel/Goods -- Boy's Clothing -- T-Shirt
Children's Apparel/Goods -- Girl's Clothing -- T-Shirt
Children's Apparel/Goods -- Infant Clothing -- T-Shirt
Children's Apparel/Goods -- Toddler Clothing -- T-Shirt
Men's Apparel -- Tops -- T-Shirt
Women's Apparel -- Tops -- T-Shirt
To modify the Product Line for the first category, expand (by clicking the plus sign next to) the Children's Apparel/Goods category. Expand the Boy's Clothing category.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1722.png">
Then highlight the T-Shirt category and click the Edit Category button at the top.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1724.png">
We can now edit various aspects of this category. For our purposes, we need to change the Product Line. Click the Product Line dropdown and choose T-Shirts. Then click OK.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1726.png">
You will then need to do the same for each of the categories listed above.
Now, when an item is entered in under any of my T-Shirt categories, it's Tax Code will default to the No tax code.
Here, I have started a new item under the specified category and it immediately sets the Tax Code to the proper one:
<img src="http://resaleworld.com/videos/jason/2009-07-29_1729.png">
*Note*: This will not change any items already entered into the system. You will need to adjust the Tax Code for each item individually.
The first thing to do is create your Tax Exempt tax type.
The following is a snippet from an article covering more about Tax Codes:
http://forums.resaleworld.com/showthread.php?t=2894
To setup Tax Codes, go to Tools >> Tax Codes...
<img src="http://resaleworld.com/videos/jason/2009-07-22_1752.png">
From here, we can edit any existing Tax Types as well as Add or Delete the specified Type.
When clicking on Add Type, you will be presented with a few screens. The first will ask for the Description of the Tax Type. In this first example, we will create a new tax type for non-taxable items. After you type in the description, you will be shown the Tax Detail screen. Here is where you enter a description for the Tax Detail as well as enter the percentages.
<img src="http://resaleworld.com/videos/jason/2009-07-22_1756.png">
Since this Tax Type is only for non-tax items, this one is complete. Just click the Save button and you will be back at your Tax Code screen.
Here is what that Tax Type looks at when complete
<img src="http://resaleworld.com/videos/jason/2009-07-22_1800.png">
Now that we have our Tax Exempt Tax Type (called No tax), we need to associate this with a certain product line.
This is done via the Category Editor. Go to Tools >> Category Editor. Then click the Product Lines tab at the top.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1710.png">
We will now create a new Product Line. Click the Add Product Line... button at the top left. We will call ours T-Shirts.
When you click the Add Product Line... button, a new dialog box will appear. The Description will be, well, the description; ours will be T-Shirts. The Default Tax Type will be our newly create No tax Tax Type.
The GL accounts are for Quickbooks exports. Please ask your accountant for that information.
The final Add Product Line box looks like this.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1715.png">
Now we need to associate this Product Line to specific categories. Go back to the Categories tab in the Category Editor window.
For our example, we need to locate all of the categories that we would use for T-Shirts. My categories are going to be as follows:
Children's Apparel/Goods -- Boy's Clothing -- T-Shirt
Children's Apparel/Goods -- Girl's Clothing -- T-Shirt
Children's Apparel/Goods -- Infant Clothing -- T-Shirt
Children's Apparel/Goods -- Toddler Clothing -- T-Shirt
Men's Apparel -- Tops -- T-Shirt
Women's Apparel -- Tops -- T-Shirt
To modify the Product Line for the first category, expand (by clicking the plus sign next to) the Children's Apparel/Goods category. Expand the Boy's Clothing category.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1722.png">
Then highlight the T-Shirt category and click the Edit Category button at the top.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1724.png">
We can now edit various aspects of this category. For our purposes, we need to change the Product Line. Click the Product Line dropdown and choose T-Shirts. Then click OK.
<img src="http://resaleworld.com/videos/jason/2009-07-29_1726.png">
You will then need to do the same for each of the categories listed above.
Now, when an item is entered in under any of my T-Shirt categories, it's Tax Code will default to the No tax code.
Here, I have started a new item under the specified category and it immediately sets the Tax Code to the proper one:
<img src="http://resaleworld.com/videos/jason/2009-07-29_1729.png">
*Note*: This will not change any items already entered into the system. You will need to adjust the Tax Code for each item individually.