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– or –
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Select a customer (or vendor) for whom you want to set up a default sales tax profile.
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On the tab, select a default sales tax group for the customer (or vendor) in the look-up field. The default sales tax group appears automatically on transactions for the customer (or vendor), but you can change the sales tax group on individual transactions before transactions are posted.
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In the look-up field, select the tax exempt number (if any) of the customer (or vendor).
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Select the check box if prices on orders for this customer (or vendor) include sales tax.
Example of
prices including sales tax
You create a sales order of 10 lamps. The unit price in the order line is EUR 10.00. The sales tax is 25 percent (%).
Case 1
For customer 1, the check box on the form is selected. The sales tax calculation is:
Gross price (including sales tax) = 10 x EUR 10.00 = EUR 100.00.
Net price (excluding sales tax) = EUR 100.00/1.25 = EUR 80.00.
Case 2
For customer 2, the check box is cleared. The sales tax calculation is:
Net price (excluding sales tax) = 10 x EUR 10.00 = EUR 100.00.
Gross price (including sales tax) = EUR 100.00 x 1.25 = EUR 125.00.
