To Set Up a Product as Taxable or Tax Exempt:
- Navigate to the Products tab and select the product you wish to configure.
- Populate the Tax Type field to indicate whether your product is a "Taxable Product" or "Tax Exempt Product".
Note: Products can be updated as taxable or tax exempt using the Product Template.
To Set Up a Tax Rate 'Product':
- Navigate to the products tab and click the "New" button.
- Name your tax product (e.g. Australian GST 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, 2050-Good and Services Tax Payable.
- Set the Tax Type field to "Tax Rate".
- Enter the appropriate tax percentage in the Tax Rate field.
Note: Tax products can be added using the Product Template.