Setting up Products as Taxable or Tax Exempt and Creating Tax Rates as Products

To Set Up a Product as Taxable or Tax Exempt:

  1. Navigate to the Products tab and select the product you wish to configure, for example, Key Pad.
  2. Populate the Tax Type field to indicate whether your product is a "Taxable Product" or "Tax Exempt Product".


To Set Up a Tax Rate 'Product':

  1. Navigate to the products tab and click the "New" button.
    • Name your tax product (e.g.Illinois State Sales Tax, Cook County Sales Tax, Chicago City Sales Tax).
    • Ensure it is marked "Active."
    • Populate the 'Revenue GL Account' with the sales tax liability GL account that you have created for sales tax payable, for example, 2025-Sales Tax Payable. 
  2. Set the Tax Type field to "Tax Rate".
  3. Enter the appropriate tax percentage in the Tax Rate field, for example, 7%.
  4. Save the record.

Note: Tax products can be added and existing products can be updated using the Product Template


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