The Goal: Create the tax regions for which your organization must collect taxes and associate the taxable product categories with each region.
Before You Begin:
- Setting up taxes is a multistep process. If any of your goods/services are taxable, you will need to configure each of the following in order: Setup Product Tax Categories, Setup Tax Regions, Setup Tax Rules, Setup Tax Rates, and Setup Tax Sets.
- Tax regions are the region for which you must collect taxes. For example, if you must collect state taxes, you could name the region after the state.
Step-by-Step Instructions
- Go to Finance, Tax Settings section, click Tax Regions.
- Click the Add button.
- Enter a Name for the new region.
- Click the
button to associate product categories that are taxable in this region.
- Repeat the step above to add additional product categories.
- Click Done.
The next step is to set up your tax rules.
Common Pitfalls
- Forgetting to associate product categories: A region with no taxable product categories associated will not generate any tax rules. Be sure to add every taxable category to the region before clicking Done.