1. Click General ledger> Setup> Sales tax> Sales tax jurisdictions .

2. Set up the sales tax jurisdictions that apply to the geographical area in which the company is liable for sales taxes. This includes assigning appropriate sales tax codes to each sales tax jurisdiction. For more information, see Set up sales tax jurisdictions.

3. Click General ledger> Setup> Sales tax> Sales tax groups .

4. In the Sales tax group setupdrop-down list, select Sales tax jurisdictions. The Jurisdiction setuptab appears.

5. On the Jurisdiction setuptab, in the Rounding bydrop-down list, select the rounding convention for the sales tax group.

1. In the Printdrop-down list, select the way you want sales taxes printed on the invoice.

2. On the Jurisdiction setuptab, select the sales tax jurisdictions that apply to the sales tax group, and enter information about tax exempt status and use tax if applicable. The sales tax codes that are attached to a selected sales tax jurisdiction appear automatically on the Setuptab.

3. If necessary, you can change the sales tax codes of the jurisdiction in the Sales tax jurisdictions form.

   Note
   To go directly to the Sales tax jurisdictionsform, right-click in the list, select Go to the Main Table Form, and attach the appropriate sales tax codes to the sales tax jurisdictions.

When a journal line or purchase or sales order line is created, the sales tax codes on the sales tax jurisdictions that are attached to sales tax groups are matched to the sales tax codes on the item sales tax groups, and sales taxes are calculated for the transaction.