Creating New Inventory Items

Each inventory item in the system has a taxable flag which determines whether the item should be treated as taxable or non-taxable for sales tax collection purposes.  This inventory tax flag is used along with the Taxtype and Taxcode fields for the customer (or Shipto if different than the Billto) to determine whether tax should be charged on each line of a sales order or invoice.  This flag must be set properly for each inventory item in your system for sales tax amounts to be calculated correctly on the orders and invoices entered into the system.  The inventory tax flag can be defaulted (normally to Y) using the inventory master default file or it can be manually filled in by the operator as a new inventory record is saved.

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Processing Sales Orders