Line item Taxable / Non-Taxable logic - Video

Haylee Benton Updated by Haylee Benton

We recently made an update for Customers who sync with QB (Desktop or Online).  Previously, Products were set to default to Taxable or Non-Taxable and you could change the setting on an individual line item by clicking on the Taxable checkbox when adding it to a Quote or Sales Order. 

Now, the Taxable setting for the Customer is also used when determining whether or not an item will be Taxable.  You may have noticed that when adding a line item to a Quote or Sales Order that it is greyed out and you cannot change it.  

The logic now works as follows:

If the Customer = NT (Non-Taxable) then any line item added to any transaction for that Customer (QT/SO/INV) will be set to NT.

If the Customer = Taxable then any line item added to any transaction for that Customer (QT/SO/INV) will depend on the whether or not the PRODUCT is Taxable or Non-Taxable.The exception to this is if you are adding a custom line item on the fly - then you can set the line item to be Taxable or not by manually checking the Taxable setting.

To update existing QT/SO/INV to reflect the change, after you update the setting on the Customer's account, open the transaction, open a line item and click the refresh icon to the right of the Taxable flag (shown below).  This will refresh ALL line items on that transaction.

If you have multiple customers that you need to update, watch to video below to see how to perform a Bulk Update.

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