Non-Taxable Sales

This morning I had an email asking about non-taxable sales and I thought it would make a good blog topic!

Basically there are two things we talk about with non-taxable sales. . . The first is Tax Exempt situations. These are the situations where you are selling to a non-taxable organization, group or person. For instance, church, school, people from Alaska or Oregon. With this, you can actually create a customer entry for each person by adding a customer in Order Entry and then making sure the Taxable switch is not selected. This will allow you to track each non-taxable order made by that individual.

Now, if this is a very rare event for you, then you might want to create one customer and call it Tax Exempt. This gives you the ability to immediately handle the order in the future without going through the trouble of entering a customer.

These transactions will show up on the Business Summary under Tax Exempt Sales.

The second scenario is when you have specific items that are non-taxable. SP-1 handles up to 5 different tax rates and then also a sixth when the tax is set to 0. So, on your Menu Groups, you have the ability to set each menu item to a specific tax (or 0 tax in this case) and to do this by the order type! For example, you might have an item that you have to charge tax on when it is prepared in house but not for to-go orders.

These taxes also show on the Business Summary under the Tax Rates as None.

I hope this helps.
Contact us at:
Mike Spence
8326 Woodland Ave. E
Puyallup Wa 98371

November 16th, 2009 by