Assign the correct Taxcode record to each zip code in the Zip Code File.

Since the system finds the appropriate Taxcode and tax rate for each sale based on the zip code being used for the sale, it is critical that each and every zip code in the Zip Code file is assigned to the correct Taxcode record.  You should obtain a listing of all of the taxing districts in which you are required to collect sales taxes.  You should then determine which zip codes are located within each of these taxing districts and assign the proper Taxcode to each zip code.  Zip Codes located in districts where you are not required to collect tax should be assigned the NO TAX Taxcode described in the previous section.

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Make sure that all taxable and non-taxable inventory items in the system are flagged properly.