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US Sales Tax Update: Customer Record has Tax Item but Taxable checkbox is set to False

edited Jun 2, 2025 2:22PM in Ask A Guru

There are three requirements to make a transaction Taxable. This is by marking the Taxable checkbox in the following records:

  1. Customer Record (Financial Tab)
  2. Item Record (Accounting Tab)
  3. Transaction (Accounting Tab if Per-Line Taxes on Transactions = F)

Previously, when one of these requirements is set to Taxable = F, the Tax in the transaction will not be computed. However, with recent feedback and testing made, this is not the same behavior that the system will give us.

To illustrate:

Set Up Taxes Page

  • Enable Tax Lookup on Sales Transactions = T
  • Charge Out of District Sales Taxes = F
  • Per-Line Taxes on Transactions

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