DynamicZip has a feature called Tax By Item Category which allows you to control the taxation of Inventory Items as well as freight and miscellaneous charges on a per state basis. The DZ Tax By Item Category Setup window allows you to choose a state, an Item Category and a Tax Option.

NOTE: Tax by Item Category was called Tax by Item Class in DynamicZip build 71 and earlier.

For Freight and Misc. Charges: Create an item category called FREIGHT from the DZ Item Category Maintenance window.

1. Assign your freight Inventory Item to the FREIGHT item category with the DZ Item Supplement window NOTE: If you have several inventory items that need to be assigned to the FREIGHT item category you may prefer using the DZ Modify Item Supplement window rather than the DZ Item Supplement window.
2. Use the DZ Tax By Item Category Setup window to setup the states where Freight will be Nontaxable.
3. Now all inventory items assigned to the FREIGHT item category as well as any amounts entered directly into the Freight field at the footer of the Sales Transaction Entry window will be controlled by your settings in the DZ Tax By Item Category Setup window.

Please follow the same steps for Miscellaneous charges, only create and use an item category called MISC.

NOTE: The CCH ZIPsales Database includes the Zipsales Database Rules file. The information contained in this file may help you determine in which states you are responsible for collecting tax on freight.

Frequently Asked Questions