We use cost-based billing, primarily. We have JC, PJ, CN, AR, and BL. Each month we produce cost-based invoices from BL. Once in a blue moon, our work is not considered a capital improvement and we have to add state sales tax to the invoice. For these jobs, I set up the Job with a AR Tax Group (on the Billing Info tab of Job Setup) as the Tax Group "NJ" (which is the state we have setup for sales tax).
On the associated contract, on the Contract Item, on the Tax tab, I select tax exempt status of Taxable on all items and indicate the Tax Group of "NJ" for all items.
When we generate the WIP, the majority of the items come across as non-taxable, and a draft invoice does not show Sales Tax on the bottom line. Any idea what I am doing wrong? We still don't fully understand how to incorporate sales tax because we do it very infrequently.
Thank you...
