You use several screens to set up sales tax for billing.
To set up sales tax for billing:
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On the Manage Sales or Value Added Taxes screen, establish the sales tax code. Enter the tax account and tax rate.
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On the Manage Taxable Sales Accounts screen, set up the taxable sales accounts (accounts to which sales tax is applied).
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On the Manage Project Sales Tax Setups screen, link the sales tax code to the appropriate projects.
After you initialize these screens, sales tax is computed on the appropriate project/account combinations when you compute the invoice.