how to cap sales tax on purchases over a certain dollar amount.



How do I cap sales tax on purchases over a certain dollar amount.

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Lance [MSFT]

Tax codes don't have a max limit setting, but you can add or subtract taxes
from the invoice using a tax line in order to subtract off any excess tax
over your area's limit.

Example case:
Suppose my city taxes sales at 2% of the first $1000 of any one sale, and no
tax needs to be collected for the portion in excess of $100.

I make a $1200 sale. The program sets the tax to .02 * $1200 = $24 but it
should be only .02 * $1000 = $20. So I need to reduce the tax by $4

To fix it, I add another line on the invoice. In the line type column (the
one with the little item picture) I pick sales tax. In the item column I
pick the city tax code. In the quantity column I pick -1, which means the
line will be subtracted from the invoice. In the unit price column I pick
$4, which is the amount of the excess tax. In the description column I enter
something like 'No city sales tax due on amounts of $1000) When I save the
invoice $4 will be subtracted from the taxes due to my city, resulting in an
invoice with the correct tax amount.

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