Changing Existing Sales Tax Rates

Q:  What is the proper way to change a sales tax rate in Accounts Receivable?

A: If the sales tax rate changes, the best way to apply the new rate is to create a new sales tax rate with the proper percentage. If you simply change the percentage instead of creating a new rate, any transaction usig the old percentage will not calculate correctly. For example, the sales tax rate for a customer was previously 6.25%. The rate increases to 6.50%. If you just change the percentage of the rate, any previous transactions will not calculate at the proper 6.25% rate applicable at the time. Adding a new rate will keep prior transactions calculating at the old rate. Remember, when creating the new sales tax rate, any customer to which the rate applies will need to be changed under Maintain Customers to use the new rate.

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