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Avalara setup clarification

I have a question regarding one particular field in the System->Setup->Tax Integration settings.

I’ve looked at the xtuple knowledge base article regarding the setup. I found it very helpful. However on the published knowledge base article there are screen shots and they do NOT include the field “Sales Tax Exempt Category”. I was wondering how we should use that field. The values in the pull down list are descriptive enough but I don’t know what selecting that value does or how it is used in the system. In other words, I don’t want to mess things up. Thanks for any info that will help me get that populated correctly.


Hi Jim,

That is to specify the default tax status for orders when nothing is set on the customer itself. Typically you would choose NON-EXEMPT TAXABLE CUSTOMER so by default it will tax every order. You can then override it on the customer or on the order itself, but those two options provide the default – one for sales order and one for purchase orders.


Thanks David. That is exactly what I was looking for.

So I guess the more specific always overrides the more general. Line item overrides order. Order overrides Cust, Cust overrides this setup default. Is that correct?