Note: Check with your accountant before you use this field.
This field in the Maintain Tax Codes (MTX) window is the maximum transaction amount subject to sales tax. Any transaction amount greater than this field is exempt from sales tax. (Transaction includes invoices, credit memos, orders, special orders, and estimates.)
For example: The Max Taxable Amt is $500. If a customer's tax rate is 3% and her purchases total $800 in a single transaction:
$500 is taxable, and the sales tax is $15 (3% x $500).
and
The remaining amount ($300) is exempt from sales tax.
The most sales tax that this customer is subject to in a single transaction is $15.
When you print an estimate, order, or special order, the subtotal (the transaction total minus the sales tax) prints as a taxable amount. However, when you invoice the transaction, the taxable and non-taxable portions are printed.
For example: The Max Taxable Amt is $500, and the Tax Rate is 2%. You create an order with a subtotal of $1000. The sales tax is $10. When you print the order, $1000 prints as taxable sales, $0 prints as non-taxable sales, and $10 prints as sales tax, even though only $500 is taxable. However, when you invoice and print the order, $500 prints as taxable sales, $500 prints as non-taxable sales, and $10 prints as sales tax.
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This field is numeric. You can enter up to two numbers plus a decimal. Valid entries are from .01 to 99999. If you leave this blank, there is no maximum taxable amount.
The system calculates sales tax based on the customer's tax code.