Tax Exemption: Options Setup

This option determines whether an item sold or returned always updates the non-taxable sales when an item’s tax code has a rate of 0%.

This option determines which customers the tax exemption statement/signature requirement applies to. Tax Exemption is typically used in states where tax is not collected on normally taxable items if they are being purchased for the production of crops or livestock intended for human consumption.

This option replaces option 5472, "Print invoice when non-taxable item sold to cash customer"

 A = Tax exemption applies to all customers

D = Tax exemption only applies when you're ringing a transaction using the default customer account (the account designated in option 330 "Default Customer Number?")

Y = Tax exemption only applies to cash customers  (account numbers that begin with an asterisk [*])

F = Tax exemption based on Tax Exempt Type.

N = Do not use this feature (this is the default setting for this option)  

This option determines when the system will require the tax exemption statement and signature. This option only applies when Option 5472 "Tax Exemption – Applies to which customers?" is not set to N. Select one or more of the choices (N,S,T,L,O), as described below, depending on your business needs.

N = Select this option to require the tax exemption when the <No Tax> key is used to post a normally taxable item as a non-taxable.

O = Select O to use a Tax Override Plan with 0% rate.

Note: If you plan to use a Tax Override Plan for multiple state sales, set T, O, and N options.

S = Select S to require the tax exemption if the transaction's tax code is the tax code specified in option 8226 "Tax Exemption - Specific Tax code."

T = Select T to require the tax exemption if the customers Taxable field in Customer Maintenance is set to N. One exception is if the customer's Taxable field is set to N and an expired resale code causes the transaction to be changed to Taxable (when option 9285 "Expired Resale Code Action" is set to T). Then the tax exemption will not be required.

L = Select L to require the tax exemption when using Posting Menu Option 1 to enter a line-item tax code AND the tax code entered has a 0% tax rate AND option 3573 "Post item(s) as non-taxable when item level tax code's rate is 0%" is set to Yes.

Note: This option's "Kept By" is set to System, but can be changed to Store, User, or Terminal.

In this option, enter the tax code you have designated as the Tax Exemption tax code. This tax code should have a 0% tax rate. You must enter a value in this option if Option ID 8225 "Tax Exemption – Applies when?" is set to either B or S.

This option determines the items for which the system will require the tax exemption statement/signature.

A = the requirement for a tax exemption statement/signature is required on ALL normally taxable items (default).

 U = Use a specific Use Code position and value to identify these items. Use Option ID’s 8228 and 8229 to specify the Use Code position and value.

This option only applies when Option 5472 "Tax Exemption – Applies to which customers?" is not set to N.

If you entered U in option 8227 "Tax Exemption – Applies to what items?", use this option to enter the position of the User Code field (or Expanded Codes) that you'll use to identify tax exempt items.

Enter one of the following 2-digit codes:

(the standard User Code fields) U1, U2, U3, or U4

(Expanded Codes A) A1, A2, A3, or A4

(Expanded Codes B) B1, B2, B3, or B4

(Expanded Codes C) C1, C2, C3, or C4

(Expanded Codes D) D1, D2, D3, or D4

For example, you might enter "U2" (meaning User Codes, 2nd position) in this field. In Inventory Maintenance, you'll place a corresponding code in the 2nd position of the User Codes field (you'll define the code in option 8229 "Use Code value to identify what items").  

If you entered U in option 8227 "Tax Exemption – Applies to what items?", use this option to enter the value of the User Code field (or Expanded Codes) that you'll use to identify tax exempt items. This option is used in conjunction with option 8228 " Tax Exemption - Use Code position to identify what items."

For example, you could enter the code "T" in this field.  In Inventory Maintenance, you'd then place a "T" in a particular position of the User Code field for each tax-exempt item (you define the position in option 8228 "Use Code position to identify what items").

Set this option to Yes if you want the system to always print an invoice whenever the system requires a tax exemption statement and signature.  Otherwise set to No to have the system print what it normally would (either receipt or invoice).

This option only applies when Option 5472 "Tax Exemption – Applies to which customers?" is not set to N.

Set this option to Yes to have the system require a signature whenever a customer purchases normally taxable items as non-taxable.  

This option only applies when Option 5472 "Tax Exemption – Applies to which customers?" is not set to N.

Use these options to define the text that displays on the signature pad when a customer is signing for tax-exempt merchandise. Use as many of these options as necessary to type your message.

Use these options to define the text that prints on the receipt or invoice when a customer purchases tax-exempt merchandise. Use as many of these options as necessary to type your message.

For orders or special orders, this option determines when the system should prompt for the tax exempt signature if the order has any normally taxable items posted as non-taxable.

S = A signature is required each time the order is saved and printed, even if a tax-exempt item was NOT added in this session.

I = a signature is required only when the order is invoiced.

B = a signature is required both when the order is saved and printed, and when the order is invoiced.

N = a tax exempt signature is not required.

This option determines what tax code the non-taxable sales for a tax-exempt customer are recorded to, specifically the items covered by the customer’s Tax Override Plan, which has a tax code with a 0% rate.  

C = Customer's Tax Code. Use this setting to record the sales dollars of items on the customer’s tax-exempt Tax Override Plan to the customer’s tax code.

O = Tax Override Plan's Tax Code. Use this setting to record the sales of items on the tax-exempt Tax Override Plan to the tax code entered on the plan.   

Note:  The customer’s tax code would typically be the store tax code (Option 104 “Customer Default Tax Code).  But it can also be customer-specific if a different tax code is entered for that customer in MCR (or on a Multiple Ship To).  It can also be overridden at the transaction-level on the POS Header screen.

This option applies only when (ID# 5472) Tax Exemption - Applies to which customers? is not set to No, AND (ID# 8225) Tax Exemption – Applies when? includes choice O (Tax Override Plan with 0% rate), AND (ID# 3573) Post item(s) as non-taxable when item level tax code's rate is 0% is set to Yes.

This option allows you to add tax exempt setup-specific fields to the POS Customer Quick Add screen.

Choose 1, 2, 3, 6, 7. If pesticide information needs to be set up at POS, also choose 4 and 5.

This option determines what should happen when a non-taxable customer has an expired resale code or tax-exempt number.

T = Warn and change transaction to taxable.

W = Warn and continue with non-taxable transaction.

X = Warn and continue with non-taxable transaction for X days. The grace period is set in ID# 9286.

Note: With this option is set to T (Warn and change transaction to taxable)  or X (Warn  and continue with non taxable for X days) and X days are past, Eagle uses the customer’s tax code and rate for those items posted that are on a tax override plan with a tax rade of 0%.

This option defines the grace period for an expired tax-exemption code. If you set ID# 9285 to X, you must set a number of days here.

Use this option to set the wording used in the system when a sale is tax exempt.

R = Resale

T = Tax Exempt

These options determine which messages are used on the signature pad and the receipt.

Set these options to point to your customer-specific tax verbiage messages.

This option determines for which tax exempt types the POS prompt “Sell as non-taxable Y/N?” pops up for items that might, or might not be, taxable. This prompt displays under the following conditions:

• The account is set up with a tax exempt type checked in this option.
• The account is set up to be Taxable =N.
• The account has a tax-exempt number and a valid tax-exemption expiration date set up.
• The account has a tax override plan attached.
• The SKU being posted is NOT on this account's tax plan.
• The SKU being posted is set up in Inventory Maintenance as Taxable = Y for this store.

This option determines whether you have to select a tax override reason from a user-defined list when a tax exemption is initiated at POS. The actual list is defined with the next option (ID# 9525).

This option is used to set up a list of reasons from which you make a selection when manually overriding an item at POS.