Sales Tax V1 - Legacy Feature

Important Notice

This feature will be retired soon. Please refer to the Configuring V2 Sales Tax guide for instructions on setting up the new V2 Sales Tax module.

Overview

The GoldFinch Sales Tax module is used to calculate sales tax on sales orders and invoices. It offers f

lexibility for both companies that need to charge sales tax and those that do not, with easy-to-configure tax areas and groups.

Default "NoTax" Setups

For companies that do not charge sales tax (B2B wholesalers or B2C e-commerce platforms), the system is pre-configured with a 0% sales tax rate using:

• "NoTax" Tax Area

• "NoTax" Tax Group

B2B Wholesalers:

• Assign "NoTax" as the Tax Area for all customers and shipping addresses.

• Assign "NoTax" as the Tax Group for all items.

B2C E-Commerce Platforms:

• Assign "NoTax" as the Tax Area for all customers and shipping addresses.

• Assign "NoTax" as the Tax Group for all items.

• Set up sales tax in the e-commerce platform and configure the integration module to download sales tax as a separate line item.

Taxable Setups

If your business needs to calculate sales tax, follow the steps below.

• Open the App Launcher and search for Tax Areas.

• Click on New to create a Tax Area.

• Tax Areas group multiple Tax Jurisdictions to define a combined tax rate.

• The Tax Area is linked to a customer account or alternate shipping address.

• In the Tax Jurisdictions section of a Tax Area, click New to add jurisdictions.

• One Tax Area can have multiple Tax Jurisdictions.

Example:

• New Jersey (NJ): Create a Tax Area named "NJ" with a Tax Jurisdiction named "NJ" and a rate of 7%.

• New York City (NYC): Create a Tax Area named "NYC, NY" with three Tax Jurisdictions:

  • New York State (NYS) 4%

  • New York City (NYC) 4.5%

  • Metropolitan Commuter Transportation District (MCTD) 0.375%

Configure Tax Details

• On the Tax Jurisdiction page, go to the Tax Detail section and click New to configure tax rates.

• Choose a Tax Group (Material, Labor, Freight, or No Tax) as different tax rates may apply.

• Enter the Tax % and click Save.

Assigning Tax Areas and Tax Groups

• Open the App Launcher and search for Accounts.

• Select the Account and assign the Tax Area under the GoldFinch ERP section.

• If the Account is taxable, check the Tax Liable field.

• In the Alternate Shippings section of the account, add or edit an address.

• Assign the relevant Tax Area and check the Tax Liable field if taxable.

• Open the App Launcher and search for Items.

• Assign the appropriate Tax Group (Material, Labor, Freight, or No Tax) to the item.

Assign Tax Group to Items

• Open the App Launcher and search for Items.

• Assign the appropriate Tax Group (Material, Labor, Freight, or No Tax) to the item.

Calculating Sales Tax on Sales Orders

• Tax Area and Tax Liable for the Sell-to Customer are automatically copied to the sales order.

  • If an alternate shipping address is specified, its Tax Area and Tax Liable status override the sell-to customer's.

• Tax Group for items is copied to each sales line.

• GoldFinch calculates the sales tax upon saving the sales order based on the Tax Area, Tax Group, and Tax Liable settings.

With these configurations, the GoldFinch Sales Tax module streamlines tax management for both taxable and non-taxable businesses.

Article Sales-Tax-V1---Legacy-Feature  ·  Last updated September 30, 2025 · GoldFinch ERP Help Center