What is it doing?
Taxes are only applicable in specific locations/locales. You should start by setting up the taxes per supplier- this is the broader option that will be faster and easier.
If you have a supplier that provides items on different tax levels, you can set up the tax levels per item.
On invoices- you'll see the tax rate per item and change it there as well for that specific invoice.
HOW TO SET UP TAX FOR SPECIFIC ITEMS - Step by Step
- Go to "Inventory" >"Inventory items"
Use the filtering and sorting on the top to make the selection easier.
For example: select a specific category, then select all and use bulk update!
- Select the items you want to add to a specific expense account.
Then click on "Actions" > "Bulk update" > "Tax Rate" and click "Continue".
- Select the tax rate you need for the item- availability varies based on your locale and local taxing requirements.
If you're missing a needed tax rate, please contact your success manager or email@example.com.
Don't forget to hit "save"!
HOW TO SET UP TAX INDIVIDUALLY PER ITEM
- Go to "Inventory" > "Inventory items"
Click on the item you want to change, and click the arrow on the right hand side to drop down the details of the item. From there, select which tax rate you need for this item. Don't forget to press save!
Mastering taxes - Make sure to map them correctly!
Make sure you're sending over the tax rates to the correct tax accounts in your accounting software!
Check out this article to see how.