Taxable versus Non-taxable Inventory Items

[CathodeRay]

We understand the basics of when sales taxes are computed. For example, an Inventory Item may be marked as Taxable, Non-Taxable, or Based on Customer.

If we choose Based on Customer, then it uses the tax schedule defined for the Ship-To address of that customer.

Here's the problem:

Item A IS TAXABLE for customer 1 in Colorado, but Item A IS NOT TAXABLE for Customer 2 in Iowa.

BUT: Customer 2 is not necessarily a non-taxable customer. That is, SOME items ARE taxable for Customer 2.

SIMILARLY: Customer 1 is not necessarily a taxable customer. that is, SOME items are NOT taxable for Customer 1.

How can we specify that an item IS taxable for a customer, even though not _everything_ is taxable for that customer?

WHERE WE GET HUNG UP: We could set up Item A to be taxable based on customer.... that would cause Sales Order to go to the customer ship-to address, and see that there is a tax schedule set up for that ship-to address, and would charge sales tax. HOWEVER, we have _other_ items that are sold to that _same_ customer at the same ship-to address, that are _NOT_ taxable. (And, by the way, those items ARE taxable for _other_ customers). How do we set that up?

 

[jazgeek]

kind of a pain, but what you could do is set up 2 copies of the item. one taxable(or based on customer) and the other non taxable and put the appropriate one on the sales order?

you might want to check with your var to do some research on if there's a third party product that will do it.

also, there's something about shipping method

if a shipping method is a "pickup" type then the order will be charged your tax
if a shipping method is a "delivery" type then the order will pick up the tax of the destination.

-----------
and they wonder why they call it Great Pains!

jaz

 

[carolmccormick]

Take a look at

http://www.avalara.com

the Avatax solution integrates into Great Plains and deals with situations like the one you have detailed above.