Shipping charges on sales overview

In the United States, sales tax is charged for freight in some states but not in others. Freight is a special case because it can be treated as either a line item in a sales transaction or as a subtotal.

When you make freight an item and give it a tax code, Avalara AvaTax determines if freight is taxable for the jurisdiction and calculates the tax based on the tax code. However, if you make freight an item, you can't calculate freight based on the overall subtotal of the transaction.

When you make freight a subtotal line, there's no way to automatically determine if freight is taxable or not for the jurisdiction.

Set up freight charges

You can set up your freight charges in one of the following ways:

• To always charge sales tax for freight, make Freight a subtotal field and place it before the Sales Tax subtotal field. With this option, you might collect more sales tax than required.
• To never charge sales tax for freight, make Freight a subtotal field and place it after the Sales Tax subtotal field. With this option you might collect less sales tax than required
• To manually calculate freight, depending on the sales tax jurisdiction, make Freight an item, and add it to a transaction at the line level. Using this method means that Intacct does not automatically calculate freight based on the entire subtotal of an order. Instead, Intacct calculates the correct amount of sales tax based on the tax jurisdiction, so you always collect the correct amount of sales tax.