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What is Sales Tax?

When you create a Sales Order in Knowledge ERP you'll need to charge your customers your required Sales Taxes.

Since Sales Taxes differ greater depending on where you're selling and what you're selling, it is up to you to enter your required Sales Taxes properly into Knowledge ERP. The Sales Taxes area allows you to add in your Sales Taxes. Currently, you'd have to add your Sales Taxes one by one. Depending on your state or how you sell your goods this might not be a big deal, but if you need to upload a spreadsheet of tax rates that you must charge your customers than please contact support, and we'll be happy to import them into your account for you.

Sales Tax fields

Category

The "Category" of a Sales Tax is how the tax will display in a Sales Order. You might simply label this as "Sales Tax" or "MI Sales Tax 6%", or if you have different types of taxes depending on the types of products you sell you might end up with "Sales Tax - Food" and "Sales Tax - General" if the rates differ in your state.

State

A required field that indicates which US state this sales tax applies to.

Zip Code

An optional field if your state has different tax rates depending on the zip code. If you ship orders and if you're required to charge customers sales tax based on the ship-to address, then having zip code specific tax rates might be important for your organization.

Tax Rate

The actual percent tax rate that you must charge your customers.

Also Tax Shipping Rate

In some areas you are also required to charge sales tax on shipping costs. If that's the case, then use this checkbox so that when a Sales Order is created it will also factor in the Shipping cost when calculating the taxes required.

Assigning Sales Tax to Inventory Categories

Once you have entered your Sales Taxes into Knowledge ERP you'll need to edit your Inventory Categories that apply to those types of Sales Tax. If you are required to charge a particular Sales Tax Category on all of your products than you'll need to edit all of your Inventory Categories and select that Sales Tax in the Sales Tax field.

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