Configure tax rate and credit options

You can configure options that impact the customer's tax rate and credit hold status by default. These defaults may be overridden at the time of order entry.

1. To set Credit and Tax Options, go to the Customer Master and create or edit a customer as described in How to create a customer.
2. Click the Credit tab along the bottom of the page.

   

3. Configure credit options
   1. Optionally, enter a value for any of the following fields:
      • TermsYour default credit payment terms with the customer. Click the magnifying glass and choose the terms. You can configure which Terms are available on File>Customer>Terms.
      • Parent A/RThis Customer Master option adds all invoices for this account to the parent or master account's open receivables. When looking up open invoices, they will appear under the parent. When looking up open invoices, they will appear under the parent's Customer Ledger page of the Customer Master, under Open Invoices. Use this configuration when a billing department sends a payment to be applied against multiple accounts. Alternatively, a payment can be split across multiple accounts during Cash Receipts posting.
      • Finance Charge %The percentage that will be calculated against open unpaid invoices, which will then be applied as a finance charge, typically during month end. Customers with no percentage will not be charged a finance fee.

      Some of these fields may be required.

      

   2. Review Credit Hold OptionsYou can configure customers to be subjected to with credit holds, which hold an order from completion until certain criteria are met. Credit holds are based off of the Credit Limit and the Max Open Invoice # of Days (typically 180). Whether customers are subjected to this credit hold is dependent on system configuration. Releasing any specific order from hold is limited by access restrictions to the Sales>Order>Release Orders on Hold option.
   3. Review the check box options (located on right).
      • Save Credit Card InfoFor Cayan or Authorize.NET users. Credit card information can be saved for future reuse. In addition to this setting, the Customer Information Manager (CIM) feature must be enabled on the Authorize. NET account. Sensitive credit card data is stored on Authorize.NET's servers in a PCI Compliant manner.
      • Point of Sale OnlyOn the Customer Master, limits the available Status codes to Hold, Inactive, & Point of Sale. This configuration is commonly the default for Fast Customers, who are often Point of Sale customers created at the sales counter, so that when their status is changed in the future, it is not accidentally set to a status with account terms.
      • Credit Limit By Ship ToOn the Customer Master, this option specifies that orders may be placed on Credit Hold based on open balances by ship to location rather than the total sum of the customer account. When selected, you must set a Credit Limit for each Ship To location on the account.
4. Configure tax options
   1. Navigate to the Tax Options.

      

   2. Set a Tax CodeThe tax rate the customer will pay. This default on the Customer Master may be overridden on the order itself. For example, the tax jurisdiction is often overridden to the local rate on Pick Ups or Will Calls. For this reason, it is important to identify a customer as Taxable/Non-Taxable, regardless of the tax code set here.. This determines the tax rate.
   3. For a non-taxable customer, clear the TaxableClear the option for customers who are tax exempt and for whom no tax is calculated. check box.
   4. Optionally enter the Tax Exempt number for reference.

      Note: Tax settings may be overridden depending on system setup. For example, a taxable customer won't be charged tax on a non-taxable product. 
      You can also configure customer specific exceptions: for example, if a non-taxable customer pays tax on certain items, go to File>Customer>Master>Tax Matrix.