Managing taxes on shipments is crucial for ensuring accurate billing and compliance with tax regulations. Tracktile simplifies this process by allowing you to specify tax rates for customers, which automatically apply to shipments. Here's how to manage taxes on your shipments effectively.

Step 1: Add a New Tax Rate

• Start by Adding a Tax Rate: Learn the process of adding a new tax rate to your facility. This involves specifying the tax name and rate, which can then be associated with specific customers. For a detailed guide, refer to Adding a New Tax Rate to Your Facility.

Step 2: Link Tax Rate to a Customer

• Set a Default Tax Rate for Your Customer: After creating a tax rate, you can link it to a customer's profile as their default tax rate. This step ensures that the correct tax is automatically applied to shipments for that customer. For instructions on how to do this, see Adding a Customer to Tracktile, particularly Step 6: Default Settings.

Step 3: Create Shipments

• Proceed to Create a Shipment: With the tax rate added and linked to a customer, you're ready to create shipments. Whether you're linking the shipment to an existing order or creating a new shipment without an order, the customer-specific tax rate will automatically apply.

Step 4: Review and Adjust Tax Application

• Automatic Tax Application on Shipments: When products are assigned to a shipment, Tracktile applies the default tax rate associated with the selected customer.

• Modifying Tax Rates on Shipments: If a particular product in the shipment should not be taxed or requires a different tax rate, you have the flexibility to adjust this. Simply click on the tax rate for an item to choose a different tax rate or opt for no tax.

Step 5: Save and Finalize the Shipment

• Finalize Your Shipment: After adjusting the taxes as needed, save the shipment. You can now generate and email shipping documents with the accurately applied taxes.

💡Tips for Managing Taxes Efficiently

• Regularly Update Tax Rates: Tax laws and rates can change. Keep your tax rates up to date in Tracktile to ensure compliance and accurate billing.

• Review Customer Tax Settings: Periodically verify that the correct default tax rates are linked to each customer, especially if they are subject to tax jurisdiction changes.

• Document and Communicate Tax Changes: Any changes to tax rates or policies should be clearly documented and communicated to affected customers to maintain transparency.

By following these steps, you can streamline the tax management process for shipments in Tracktile, ensuring that each shipment is accurately taxed according to the customer's default settings, thereby simplifying compliance and billing processes.