When products on an invoice are subject to tax, place a checkmark in "Taxable?" box in the lower left portion of the Main Invoice Screen.  Whenever "Taxable" is checked, all the products on the item list will be taxed.

There may be situations, however, when you do not want to tax everything on the list.  To designate one or more products as non-taxable, type a "\NT" (for non taxable) after the product's name in the item column.  (If a product's name fills the entire column, you may need to slightly abbreviate the name.)  You may also use "\nt" (in lower case).

Adding the "\NT" to a product name can be done automatically by placing your cursor on the desired row in the Item Area and selecting PRODUCT TOOLS >> DESIGNATE AS NON TAXABLE ITEM from the Menu Bar.  If you need to remove an item's non-taxable designation, select PRODUCT TOOLS >> REMOVE NON-TAXABLE DESIGNATION.  (You can also remove the non-taxable designation by deleting the "\NT" at the end of the product's name.)

If many of your sales are taxable, and you consistently sell certain products or services that should not be taxed, you may want to incorporate the "\NT" directly into the product's name in the Product Information Database.  The Product Information Database is reached by selecting PRODUCT TOOLS >> PRODUCT INFORMATION & CATALOG NUMBERS from the Menu Bar.  If "\NT" is a part of the name, then every time you enter the product on a taxable invoice, it will be left out of tax calculations.

Sales figures, generated by selecting MAIN TASKS >> SALES AND SALES TAX REPORTS or YEARLY SALES REPORTS are automatically adjusted reflect "\NT" items on invoices.

The non-taxable designation also works for credited items.  Let's say you are preparing an invoice with several returned items listed on it.  If the items were taxed on the original invoice, you would place a checkmark beside "Taxable" to figure the amount of credited tax.  If one of the returned items on the list was a non-taxable item on the original invoice, then you should designate it as a non-taxable item with the "\NT" designation.  The tax on the "\NT" item will be removed from the tax calculations.  Thus, the two invoices, the original and new invoice with returns, balance one another.

For more information on taxes, see:

Tax Fields on the Main Invoice Screen

Sales Tax Report (Primary Rate)

Setting up a Primary Tax Rate

Changing Tax Rates

Variable Rates, Tax Codes, & Tax Code Reports