To enable and use Tax By Item Category, you could perform the following steps.
In most situations where Tax By Item Category is used, the inventory items have been setup with a Sales Tax Option of “Base on customers” in the Item Maintenance window.
To change an item's category based on which state the sale is located in, you can use the DZ Item Category Override window.
NOTE: By pressing the Print button on the DZ Tax By Item Category Setup window you can get a report of the current TBIC rules you have in place. This print/report functionality can help when you are reviewing your taxability settings.
NOTE: If Assign Tax Schedule is disabled in the DynamicZip Setup window, TBIC will also be disabled.