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Taxable and Non Taxable Customers

  • August 26, 2024
  • 6 replies
  • 275 views
B
Varsity I
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Driving myself bonkers.  We are using 24R1 and trying to get sales taxes set up.  Here is the setup:

Tax ID: NYSTATETAX = 8.875%, NYNOTAX = 0%

Categories: Taxable, Exempt

Tax Zone: NYTAXABLE linked to NYSTATETAX and Taxable

Tax Zone: NYNONTAX linked to NYNOTAX and Taxable and Exempt

 

All inventory items are set to taxable.

 

When I create a sales document for a customer with the NYTAXABLE tax zone and a Taxable item ($99.60) and an Exempt item ($25), the correct taxes are calculated, but the tax breakdown is incorrect - the NYNOTAX tax id is missing.

When I create a sales document for a customer with the NYEXEMPT tax zone and a Taxable item and an Exempt item, no taxes are calculated and the tax breakdown on the taxes page is correct.

 

Best answer by AmaanFazeer11

Hello ​@brucewarrell96 

The workaround to over come this scenario would be to create a new Tax ID for the Exempt orders where it is only linked to "Exempt" Tax Zone

Thereafter both "Taxable" and "Exempt" Tax Categories can be assigned to this Tax ID.

For reporting purposes the same reporting Group "Exempt Sales" can be specified so it falls into the same tax group on the Tax Report.

Hope this helps

Amaan

Naveen Boga
Laura03

6 replies

Laura03
Captain II
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  • Laura03
  • Captain II
  • August 27, 2024

Hello,

I think 0% tax isn’t showing on the Taxable customer’s sales order because it’s not connected to the Taxable customer’s zone.

 

Laura

~ Laura Barber, WM Synergy
Chris Hackett
B
Varsity I
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@Laura02 Thanks.  That works but as we’ve experienced it then breaks the second scenario of a tax exempt customer with taxable and non-taxable items on an order.  Only the non-taxable item is reported as the taxable amount.  Here is the setup:

 

Laura03
Laura03
Captain II
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  • Laura03
  • Captain II
  • August 28, 2024

Hi,

Try adding the 0% tax to the Taxable tax category. Does all tax and non-tax calculate correctly when 0% tax id is included in both Taxable and Not-Taxable categories?

 

Laura

~ Laura Barber, WM Synergy
Chris Hackett
B
Varsity I
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No.  When I do that, it fixes the tax exempt customer scenario but breaks the taxable customer scenario.  The taxable amount for the no tax group includes the taxable item amount.  See here:

This order has a $41.50 taxable item and a $750 non-taxable service.

Chris Hackett
Community Manager
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  • Chris Hackett
  • Acumatica Community Manager
  • September 11, 2024

Hi @brucewarrell96 were you able to find a solution? Thank you!

Chris ~ Let us know how we're doing: https://forms.office.com/r/xmJUdZ1QE5 - A member helped you, please *Like* their post. A member provided an answer to your question, please mark it as *Best Answer*.
A
Acumatica Employee
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  • AmaanFazeer11
  • Acumatica Employee
  • Answer
  • March 12, 2025

Hello ​@brucewarrell96 

The workaround to over come this scenario would be to create a new Tax ID for the Exempt orders where it is only linked to "Exempt" Tax Zone

Thereafter both "Taxable" and "Exempt" Tax Categories can be assigned to this Tax ID.

For reporting purposes the same reporting Group "Exempt Sales" can be specified so it falls into the same tax group on the Tax Report.

Hope this helps

Amaan

Chris Hackett
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