Brightpearl supports Sales tax in the USA as follows:
A sales tax rate is typically made up from a number of components, such as City, County and State rates. The sum of all these rates is what you pay the IRS. Tax components in Brightpearl are used for each tax reporting authority (City, County, State) - think of them as the building blocks from which you create Tax codes. Different tax codes could share the same component; two different cities in the same state would share the state tax rate, but have their own city rate.
Note: You only need to use separate components if you want to report on the breakdown of sales tax in more detail than the tax code level. If you only ever produce tax figures at the tax code level (ie ALL your tax gets paid to one authority who subsequently split it out for you), then you may decide that you don't need the extra complication of separated tax components. If in doubt, then create tax components from the start.
Tax Components
First, set up your tax components at Setup > Localization > Tax components. You can't create multiple components with the same name. Once a tax code that uses a component is in use on orders or accounts, you won't be able to edit either the tax code or the tax component.
Tax Codes
Tax codes are used on contact records and sales/purchase order lines (in VAT mode, Brightpearl also supports the tax code on the product).
Create as many tax codes as you need at Setup > Localization > Tax codes. To give the tax code a value, select the appropriate components that you have set up previously.
In this example we're selling to a customer in the San Francisco area, whose tax code of 12.25% is made of three components (this is just by way of example, it's not the actual figures)
Taxable Products
Each product can be set to be either taxable, or non taxable. If a product is taxable, then when adding it to a sales order, the order line will be set to the customer's tax code, if they have one. If the customer does not have a tax code, then the order row will be set to non taxable. You can change the tax code on the order row once the product is added, if you want to.
