Sales Tax Per Line On Order

The "default" tax system in the U.S is 'Sales Tax On Order'
Do not change the default tax system unless you have a very good reason for doing so, i.e: it is required for you to do so per the regulations and laws in your country or state. If you are unsure then please check with your accounting professional.

Sales Tax On Order

This is the primary system used in the United States. The tax percentage is set for the whole order, and then each row on the order is set to either ‘Taxable’ or ‘Non-taxable’. Teesom uses this by default.

Sales Tax Per Line On Order

The order itself is either set to ‘Taxable’ or ‘Non-taxable’, and then each row is individually taxed a certain percentage. In other words: each row on the order could be taxed at a different rate.

This article describes the SECOND option: "Sales Tax Per Line On Order"

To instead follow the tutorial on "Sales Tax On Order", CLICK HERE

Click Here To Learn The Difference Between The Two Different Tax Systems

IF YOU CHANGE YOUR COMPANIES TAX SYSTEM ANY ORDERS THAT YOU HAVE CREATED BEFORE THE CHANGE WILL NO LONGER BE ABLE TO BE EXPORTED TO QUICKBOOKS!

You will have to manually create them in QuickBooks and then mark them as sent in Teesom.

Choosing your Tax System

You can set your “Tax System” on the “Company Setup” screen under the “Setup” tab.

Go to the “Main Menu“.
Select “Company Settings“.

On the “Setup” tab.
Expand the “My Company” section.
Scroll down to the “Tax System” row and change it to “Sales Tax Per Line On Order.”

Setup Your Item Tax Rates

When you first signed up for Teesom it automatically created a tax code for you called “No TAX @ 0%”. You will have to manually create more from the “Company Setup” screen:

Go to the “Main Menu” .
Select “Company Settings“.

Then on the “Company Setup” screen:

Click on “Lists“.
Expand “Item Tax Rates“.

This is where you will view, edit and create your sales tax codes.

"Item Tax" vs "Customer Tax"

Item Tax Rates: Is set on each individual item or service row on the the order and determines the tax rate that will be charged on that row, if the order itself is set to “Taxable”.

Customer Tax: Is set on the order itself and determines if this order is taxable or not.

Important for QuickBooks Users: When setting up your Item Tax Rates, they should be setup exactly as they are in QuickBooks!
i.e. If you have a combined tax that is broken out in QuickBooks you should do the same in Teesom, using the Zip Code should work in this case. If you have a single tax rate/code in QuickBooks then you should setup a single tax rate in Teesom, you should create your own tax rate instead of using the "By Zip Code" function.

It is important that both your QuickBooks and Teesom tax rates match up and reflect how you pay your taxes in reality. Check with your accounting professional if you are unsure.

Create Item Tax Rate Using a Zip or Postal Code

To create a new “Sales TAX Code” by zip code:

Expand “Item Tax Rate“.
Click “New Tax Rate“.

On the “New Sales Tax” screen:

Click on the “By Zip Code” tab.
Enter the zip code you are creating the tax from.
Click on the magnifying glass to bring up a list of the tax codes that will be created.
Click on “Save” to create them.

The Tax codes will be on the left, the description will be in the center, and the tax rates will be in the right column.

Note the row that says "Combined Tax". A "Combined Tax" is a tax code that contains multiple single tax codes. When you create tax codes using a zip code Teesom will automatically create a combined tax that will house all the single tax codes that are created.

Create An Item Tax Rate Manually

To manually create a tax code:

Click on “New Tax Rate“.

Create a Single Tax Rate

To create a single tax code:

Enter the tax code. (Abbreviated Description.)
Enter the description of your tax code.
Enter the rate. Ex: 5.5
Click “Save“.

Create A Combined Tax Rate

To create a combined tax code:

Click on “New Tax Rate“

On the “New Sales Tax” screen:

Check the box “Combined Tax”.
Enter a tax code and description. (The Tax code must be unique when adding manually.)
Select which single tax code you want to add.
Click the green plus to add the single tax code. (Repeat steps 3 and 4 until you have all the tax codes you want in this combined tax group.)
After adding the tax codes you can see their combined rate.
Click on “Save” to create the combined tax.

You can only add/remove single tax codes when creating the combined tax.

Edit/Delete Tax Codes

After creating your new Item tax codes, you will be able to see and edit them under “Item Tax Rates” on the “Company Setup” screen:

You will not be able to delete any tax code that is in use on an order.

Before deleting a "Single Tax Code", you will need to delete all combined taxes that use that tax code.

The link icon being purple indicates that this tax code is part of a combined tax.
The eye icon being purple means this tax code will be available to use on orders.
This icon is shown on combined tax codes/rates.

Edit A Single Item Tax Code

Update the code for this sales tax.
Edit description.
Edit rate.
Check the box to make this single tax rate available to use on orders.
Save your changes.

Edit A Combined Item Tax

Edit the combined tax code and description.
Change the order that the tax codes in the combined tax appear in.
Toggle ‘Is Tax on Tax’ on or off.
Save your changes.

The combined rate is a sum of all the single rates added. It can only be changed by editing the single tax codes associated with it.

You can only add/remove single tax codes when initially creating the combined tax.

Set The Default Company Tax

You can set your company’s default sales tax from the “Setup” tab on the “Company Setup” screen:

Click on the “Setup” tab.
Expand “Defaults”.
Set your default sales tax by clicking on the dropdown and selecting a sales tax code.

Set The Default Tax For A Customer

To set the item tax for a specific customer:

Go to the “Main Menu“.
Select “Customers“.

On the “Customers” screen:

Click on the “3 Dot” dropdown.
Select “Edit“.

On the “Edit Customer” screen:

Click on the “Advanced” dropdown.
Select “Money“.

Select the item tax code you want the customer to use by default.
Click “Save“.

If "Use Default Tax" is selected then the customer will use the company default.

Set The Tax On An Order

To change the Item tax rate on an order:

Open the order.
Click on the “TAX” square on an item row and select the tax code. (You can check multiple items on the left side and then use the dropdown above to change the tax rate for all of them.)

To change the "Item Tax Rate" on a WIP Invoice you must be in edit mode.

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