Sales Tax Groups
Sales Tax Groups let you organize Sales Taxes into groups, such as the states in which you have nexus and must collect sales tax. Then you can have Albany for NY and GA.
Turn on Sales Tax Groups in the Customer Prefs and restart Clients to use the setting.
Then in any Tax pulldown choose Show List to Add or Edit, Albany for GA, and NY.
Sales Taxes
Big Business 8.7 simplifies Sales Taxes, making it easy to calculate and track taxes where different rates apply to different items, such as food and non-food, or different rates apply for different amounts.
This Solution describes the settings for Sales Taxes. (6299)
To define a simple Sales Tax, enter:
• Sales Tax Name - to identify the Sales Tax, such as "Charlotte" or "Out-Of-State"
• Account Code - for Sales Tax collected, like "2310 - Sales Tax Payable"
• Tax Rate - a percentage entered as a number like "7.25" for 7.25% tax
Click OK to save your Sales Tax definition.
To define a more complex Sales Tax, you might add:
• Group - to use grouped menus, such as by State
• Calc 1st - set a Tax Rate to apply first in a compound calculation
• Tax #2 - set a Tax Rate to use a second tax calculation for different items
• Limit - set a Tax Rate to apply up to the Limit specified
• Tax Tag - sets the Tax checkbox for Items with the Tag so only tagged Items are taxed
Please contact Support for help with settings. There are also options for Taxable Amounts to be used in Other Charges, to have Other Charges included in Taxable Amounts, and so on.
The pictured Sales Tax sets Items with the Tag, "Non-Food" to be taxed at 7.25% and other Items marked Taxable to be taxed at 2%.
Tax Status
Tax Status has been added to the Contact card to automate Sales Tax changes when switching Addresses.
This Solution describes the settings for Sales Taxes. (6725)
Chapter 77 Sales Taxes
Big Business provides an array of sales tax features and options including:
• Customer Tax Status - to automatically calculate, or exempt, each customer
• Contact Tax Status - to automatically calculate, or exempt, each Ship-To for customers with multiple locations
• TaxJar Lookup - to automatically look up each shipping address with TaxJar
• Custom Lookup - to automatically look up each shipping address with your state
Sales Taxes Search
Sales Taxes Search is a new tool on the Reporting toolbar. Use it to Find and Update your Tax Statuses. For example, find the entries for a state and mark them Inactive when they are being replaced by address lookup.
Get Rates
Get Rates is a checkbox on a Sales Tax that triggers a lookup of the current rates for the Selected State. This might use a Taxes service like TaxJar, a Rates service like Zip-Tax, or a State service like California's.
Check the box if you want Big Business to always choose this entry for Shipping State and to look up current rates using Shipping Address.
Sales Tax
Sales Tax is being updated in Big Business 14 to keep full featured with easier options.
Pictured, the dialog to Add or Edit a Sales Tax shows too many settings on one screen.
Sales Tax Groups
Sales Tax Groups are updated for Big Business 14, to improve hierarchical list display.
By assigning Groups to your Sales Tax entries you can have them displayed in groups. Group them by state, and the Sales Tax menu shows State, then Sales Taxes submenu.
Turn on Sales Tax Groups in the Customer Prefs and restart your Clients to display.
Taxes Changes
Sales Tax features are being reviewed and updated as the sales tax landscape is changing from where you have a physical presence to include where you have substantial sales–economic nexus.
This Solution lists current features and can be used as a starting point. (6827)
Sales Taxes features are being reviewed and updated.
Big Business 11.18 adds fixes and customizations such as Tax State.
Big Business 11.17 extends TaxJar Connect features for automation. It also adds Tax Exempt settings to allow greater control and greatly simplified reporting.
Big Business 11.16 adds basic TaxJar Connect features.
Big Business 11.15 updates the conversion of Quote to Invoice to work better with Sales Tax.
Big Business 11.15 fixes a possible error, creating a Sales Tax without an ID.
Exemption Type
Tax Exempt makes it simple to override tax calculations for tax-exempt customers.
This Solution provides details. (6855)
Non-Nexus Tax
Non-Nexus Tax lets you select the Tax Status to be automatically assigned when shipping to States not included in your Nexus States list.
This Solution provides details. (6923)
Lock Taxable
Lock Taxable blocks users from change Taxable and Exempt settings on Customers, Contacts, Items, Quotes, Orders, and Invoices.
This Solution provides details. (6959)
To enable Lock Taxable for your Company:
1. Go to the Company card to the Advanced tab.
2. Click the checkbox for Lock Taxable.
3. Click OK to save the Company Card.
The, to allow select usersaccess to Taxable and Exempt settings, go to their Employee card, to the Access tab, and set Unlock Taxable.
Unlock Taxable
Unlock Taxable lets you set select users who can access Taxable and Exempt settings when Lock Taxable is enabled.
This Solution provides details. (6960)
To allow an Employee access to Taxable and Exempt settings when Lock Taxable is enabled, click the checkbox to Unlock Taxable on the Access tab of their Employee card. This exempts them from Lock Taxable restrictions.
Tax Status of a Line Item
Big Business will automatically calculate the Sales Tax for a Line Item if the following conditions are met:
-the Tax Status is properly defined with a Category and a calculation
-the Customer for the transaction has a Tax Status assigned
-the Taxable checkbox on the Item Card is checked
This works for most situations because if one criterion is not met, tax is not calculated for the Line Item. You can define 0% Tax Statuses (e.g. Out of State) and nontaxable Items.
This poses a problem when you run into an exception. You cannot change the Taxable status of a Line Item without changing its Item Card. (3193)
Big Business lets you change the Tax Status of a Line Item on a Sales Transaction simply by clicking the Tax Status checkbox. Previously, this checkbox only indicated whether or not an Item was taxable.
For tax to calculate:
• The Customer selected must have a taxable Tax Status.
• The Customer's Tax Status must be properly defined.
• The Line Item Tax Status checkbox must be checked.
If Tax is not being calculated:
1. Open the Customer Card, for the specified Customer.
2. On the History tab, select Show List from the Tax Status Pull-Down menu.
3. Click the Edit button to review the Customer's current Tax Status.
4. Confirm that an Account Code and a Tax Rate are properly specified.
If any changes are necessary:
5. Save changes to Tax Status and to the Customer Card by clicking the OK buttons.
6. Select the Customer, again, on the transaction, to load the new Tax Status information.
Defining Complex Sales Taxes
Defining Complex Sales Taxes
Big Business supports VAT (Value Added Tax) and other complex sales tax structures. You can define and use sales tax rates that combine multiple individual taxes—local, provincial, and federal, for example. If you choose the Calculate First option for a tax, other taxes are calculated to include it.
To define complex sales tax structures:
1. Choose Show List from the Tax Status QuickPop list in the History tab of a Customer Card.
2. Click the Add button.
3. In the Add Sales Tax Item dialog box, define the tax, then click the OK button. (3076)
Big Business supports complex sales tax structures. You can define and use sales tax rates that combine multiple individual taxes—local, provincial, and federal, for example. If you choose the Calculate First option for a tax, other taxes are calculated to include it.
To define complex sales tax structures:
1. Choose Show List from the Tax Status QuickPop list in the History tab of a Customer Card.
2. Click the Add button.
3. In the Add Sales Tax Item dialog box, define the tax, then click the OK button.
Taxes which use the Calculate First option are itemized in the Notes for an Invoice.
Defining Complex Sales Tax
This Solution describes how to set up and collect complicated taxes, such as value added tax. (VAT) or compound taxes. You can set up taxes so that they incorporate various local and provincial taxes. (5173)
Big Business supports VAT (Value Added Tax) and other complex sales tax structures. You can define and use sales tax rates that combine multiple individual taxes--local, provincial, and federal, for example. To define complex sales tax structures, choose Show List from the Tax Status QuickPop in the History tab of a Customer Card. To add additional taxes, click on the plus button and enter the appropriate Sales Tax name, Account Code, and Tax Rate. To add more than one tax, click on the plus button and insert additional Account Codes and Tax Rates. If you click on the Calculate First checkbox for a tax, the tax will be calculated before calculating additional taxes (compound). If any of the individual taxes use the Calculate First option, the effective tax rate will be calculated and displayed.
The breakdown of compound taxes is automatically included in the Notes field on built-in Invoice forms.
To define complex sales tax structures:
1. Choose Show List from the Tax Status QuickPop list in the History tab of a Customer Card.
2. Click the Add button.
3. In the Add Sales Tax Item dialog box, define the tax, then click the OK button.
Taxes which use the Calculate First option are itemized in the Notes for an Invoice.