– or –
Select a customer (or vendor) for whom you want to set up a default sales tax profile.
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.
In the look-up field, select the tax exempt number (if any) of the customer (or vendor).
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 (%).
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.
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.