Setting up Products as Taxable or Tax Exempt and Creating Tax Rates as Products
To Set Up a Product as Taxable or Tax Exempt:
- Navigate to the Products tab and select the product you wish to configure, for example, Key Pad.
- 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':
- 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.
Note: Tax products can be added and existing products can be updated using the Product Template.