How can I get the tax type allocated to the Customer Profile to also default in the item? Or what's the reason when it doesn't?

Hi Eva,

The item tax status and customer tax status act independantly to determine what amount of tax to charge. Invoices and OrderEntry check the tax payable according to both statuses and charge the customer the lower of the amounts calculated. So, if the customer has a non-taxable rate, but the item is taxable, no tax will be charged - vice versa too.

Therefore if customer profile says tax exempt it should default to tax exempt even if there is tax on item, correct? Apparently it isn't.

Hi Eva,

Where are you seeing items getting taxed when the customer tax status is exempt? The Tax summary report or Tax Tracking? We're not aware of any problems here.

Check the tax table to make sure that the tax rate for the tax exempt status is 0.00 (not 99.99 as what would be there if Accpac Plus OE was used).

When you select the item and on the invoice.
3 = Tax exempt
2 = GST only
1 = Fuel & GST
0 = FuelSurcharge & GST

What are the rates for the tax table, for both customers and items, for the tax statuses you've posted above? You need to view the tax table or print the tax table list report to see this.

3 = Tax exempt 0%
2 = GST only 6%
1 = Fuel Only 17.5
0 = FuelSurcharge & GST

Does this help?

OK, so if these are the same numbers for both customer and item tax statuses, then if a customer has a status of 3 (tax exempt) on an invoice then no tax should be calculated. Regardless of the item tax statuses.

If the customer tax status is anything other than 3, then there will be tax determined for all items other than those that are tax exempt themselves.

A customer with status 2 and an item with status 1 will get a 6% tax charged for that item, as it's the lower rate. A customer with status 2 and an item with status 3 will have 0% tax charged for that item, as 0 is the lower rate. Essentially, tax is s total of all of these combinations of customer and item rate comparisons.

Hopefully this helps in making updates to your tax table in order to be charging the intended tax to your customers on invoices.

Thanks for your patience and help. I discovered she hadn't changed her Customer Profiles yet afterall.