How do I setup a reduction item for Transaction Priviledge Taxes? Follow

Problem: The taxing authority needs our client to add up labor and materials and multiply by 65% and then multiply by the tax rate.


  1. Set up the tax maintenance as below.
  2. Tax ID - TransPriv
  3. Description – Transaction Privileged Tax.
  4. Agency – Enter the agency name you send payments to.
  5. G/L account - Tax.
  6. Rate – Enter the normal tax rate.
  7. TaxProductType – Check off what is taxable (usually everything).
  8. SourceForBasis - Price.
  9. PercentageOfBasis – In our case it will be 65 (customer will enter based on the information from their state).
  10. Tax Venues tab – Check off the venues.

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