About Item Tax Districts
You can use the Item Tax Districts window to set up tax districts that work with item departments. This is a helpful feature for Furniture dealers who have taxable and non-taxable locations.
Suppose you have two separate locations— Phoenix and Albuquerque. While Albuquerque is taxable, Phoenix is not. When you place an order for Phoenix, it is important that the system recognize the non-taxable status of items on the order. The Item Tax Districts window lets you enter a From tax district to a Replacement tax district that is tied to the item’s department. When items with this department are placed on the order, the system automatically switches the tax district to use the replacement district you entered. For example, it could switch from taxable to non-taxable.
This feature also works with the Use Department As Item Tax Code for Uncataloged field in the text-based (LGC) Furniture Order Entry Parameters screen. If you set this field to Y, the system automatically matches the uncataloged item’s department to the correct tax code.
To set up item tax districts, you must first set up categories. See Setting Up Item Tax Districts for more information.
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