Define Tax Areas and Tax Jurisdictions

Tax jurisdictions represent individual taxing authorities, such as a state, county, or city. Tax areas group one or more jurisdictions together for a specific geographic location. Each customer is assigned a tax area, which determines which jurisdictions apply to their transactions.

 

Complete both procedures in order: create the tax jurisdictions first, then create the tax area and assign the jurisdictions to it.

Create Tax Jurisdictions

  1. Search for Tax Jurisdictions and select the relevant link.

  2. Select New and enter a unique Code and Description for the jurisdiction, for example WA STATE or SEATTLE CITY.

  3. Select Related > Jurisdiction > Tax Detail to open the tax detail entries for this jurisdiction.

  4. Select New and specify the Tax Group Code that this rate applies to, or leave it blank to apply to all tax groups.

  5. Enter the applicable tax percentage in the Tax Below Maximum field.

  6. Repeat steps 2–5 for each jurisdiction required, such as state, county, and city.

Create a Tax Area

  1. Search for Tax Areas and select the relevant link.

  2. Select New and enter a unique Code and Description for the tax area, for example WA-SEATTLE.

  3. In the Lines FastTab, select New and choose a jurisdiction code from the list of jurisdictions created in the previous procedure.

  4. Repeat step 3 to add all jurisdictions that apply to this geographic area, for example both the state-level and city-level jurisdiction for a customer in Seattle.