Who Is Sales Tax Exemption For?

Sales tax exemptions aren’t only for your nonprofit customers. They are also often available for resellers, government entities, some manufacturers, and other business types, depending on your state and local tax laws.

Because exemption rules vary widely by jurisdiction, Sage 100 can’t apply them automatically on your behalf. Instead, you will have to set this up yourself (or ask your Sage consultant).

Want to tackle the setup in-house? You can. Once you know where to find your customers’ valid exemption numbers, the process is relatively straightforward — especially with a clear guide like this. Follow these steps to add sales tax exemption in Sage 100.

How to Add Sales Tax Exemption in Sage 100

You can add sales tax exemptions in two ways: enter directly for a customer, or for a customer’s ship-to address / location code. The latter option is useful when you’re shipping to a different state with different exemption laws than your customer’s home state.

Confusing? You betcha. Taxes are confusing to pretty much everyone, which means we can’t help you determine which of your customers are tax-exempt in which locations. However, once you figure that out, we can help you enter the exemptions into your Sage 100 system so you can streamline your sales.

Keep in mind that, since this is a manual process, you may make occasional data-entry errors. Be sure to keep your customers’ valid exemption certificates on file and audit your entries regularly, so you can verify the correct numbers if you need to.

Note: Sage 100 stores tax exemption numbers for customers and ship-to addresses in AR_CustomerShipToTaxExemptions.M4T when Sales Tax Reporting is enabled in Accounts Receivable Options.

How to Manually Enter Sales Tax Exemptions for a Customer

1. Begin this process from the Customer Maintenance screen.

To get to this screen:

Open Accounts Receivable.
Navigate to the Main menu.
Select Customer Maintenance.

2. From the Customer Maintenance screen, bring up the correct customer using their Customer No.

3. Access the “Main” tab.

4. Click the “Exemptions…” button.

A pop-up window, “Tax Exemptions Maintenance,” will appear on your screen.

5. In the Tax Exemptions Maintenance window, enter the customer’s Exemption Number.

Note: Enter the Exemption Number for each tax code, as applicable.

6. Click OK.

How to Manually Enter Sales Tax Exemptions for a Customer’s Ship-To Address (or Location Code):

1. Begin this process from the Customer Maintenance screen.

To get to this screen:

Open Accounts Receivable.
Navigate to the Main menu.
Select Customer Maintenance.

2. From the Customer Maintenance screen, bring up the correct customer using their Customer No.

3. Click the “More” button (or its dropdown chevron).

You will find this button (and chevron) in the top right-hand corner of your screen. Clicking the button or the dropdown chevron will give you additional options.

4. From the dropdown options, select “Ship-To Address.”

This action opens the Customer Ship-To Address Maintenance screen.

5. From the Customer Ship-To Address Maintenance screen, pull up the Location Code (Ship-To Number).

6. Click the “Exemptions...” button.

The system will display the Tax Exemptions Maintenance window for that specific Ship-To Number (Location Code).

7. In the Tax Exemptions Maintenance window, enter the Ship-To Address’s Exemption Number.

Note: Enter the Exemption Number for each tax code, as applicable.

8. Click OK.

Conclusion

Taking the time to enter tax exemptions in Sage 100 helps you meet customer needs more easily. Whether you're setting up a sales tax exemption in Sage 100 at the customer level or for specific ship-to addresses, you gain the control and flexibility you need when you follow these steps.

To recap, the process involves navigating to the Customer Maintenance screen, selecting the right customer, and entering exemption numbers either on the main customer record or for specific ship-to locations. Once you set them up, Sage 100 will store these exemptions for future transactions, saving you time and headaches down the road.

A few simple steps now can lead to smoother sales tax handling and better customer service ahead.

Next Steps

If you have questions about adding sales tax exemption in Sage 100, Ardent Consulting is at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business’s potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.