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How to Update Sales Tax Rates for Customers

This help topic will show you how to update or change sales tax rates on customers after those rates have changed.  The recommended method to update your sales tax rates may be accomplished by following the steps below.

Step-by-Step Process on Updating Sales Tax Rates

  1. 1. Open the Sales Tax Item List (Customers | Sales Tax | Sales Tax List).
  2. Locate the Sales Tax Item that requires a rate change.
  3. Double click to open the Sales Tax Item.
  4. Change the name of the existing Sales Tax Item as necessary.
    a. Consider using a name that is different than what you are currently using.
    b. Consider putting the percentage in name to clearly state the amount being calculated, e.g. KS State Sales Tax 5.5%, KS Local 1%, JoCo Group 9.975%.
    c. This rate change may be done in advance of the effective date.
  5. Right click on the Sales Tax Item List and choose the option New Sales Tax Item.
  6. Create a new tax item with the new rate. This new tax item will mirror the existing tax item with only a change in the Tax Rate.
  7. Repeat Steps #2-6 for each tax item that requires a rate change.
  8. If you do not track Sales Tax Groups, skip to Step #16.
  9. Once you have completed updating your tax items, you will also need to create new Sales Tax Groups for all groups containing any of the Sales Tax Items with rate changes.
  10. Locate the Group Item in the Sales Tax Item List.
  11. Double click to edit the group.
  12. Change the name following the same guidelines in Step #4.
  13. Right click on the Sales Tax Item List and choose the option New Sales Tax Groups.
  14. Create a new Sales Tax Group with the new Sales Tax Items.
  15. Repeat Steps #10-14 for tax group that requires a rate change. Once you have completed all updates to rates for items and groups, it is necessary to update the Sales Tax Item/Group selections on your Customer:Job records.
  16. Navigate to Tools | Utilities.
  17. Double click on the option Customer Tax Item Update.
  18. In the From box, select the old Sales Tax Item/Group.
  19. In the To box, select the new Sales Tax Item/Group.
  20. Check the box to inactivate the From selection on completion of the Customer:Job Tax update.
  21. Repeat Steps #18-20 for each Sales Tax Item/Group that is to be updated in the Customer:Job records.
  22. To verify the Sales Tax Item/Group has been updated, you may filter your Customer:Job list for the Tax Item.
  23. If you notice there are Customer:Jobs with incorrect or missing Tax Items, you may select multiple records and click Actions |Batch Update Tax Items.
  24. Select the Tax Item you wish to update to the Customer:Job(s) and click Update.

Sales Tax Tips

  • When creating new invoices/sales/estimates for a Customer:Job, the tax item will prepopulate from the Tax Info tab to the new transactions.  Keep this current!
  • It is recommended to create a filter for tax items which are inactive and still selected on the Customer:Jobs Tax Info tab.  This will help to quickly isolate and update these records.
  • You may consider either renaming the old tax items to help isolate them faster. Adding x- to the front or -old to the end helps identify these in filter searches more quickly.

Topics Related to Sales Tax

Sales Tax Item Groups (adding and editing)

Sales Tax Rates – Updating and Changing