what is tax item setup

AI generated answer (using internal Slack threads):

Tax Item Setup in NetSuite involves configuring the tax items that will be applied to transactions. This setup is crucial for accurate tax calculation and reporting. Tax items are typically associated with specific tax rates and can be grouped together to form tax groups. These tax groups can then be applied to transactions based on various factors such as the location of the customer or the nature of the goods or services being sold. Here are some key points about Tax Item Setup: 1. Tax Items: These are individual tax rates that can be applied to transactions. They are typically associated with specific tax jurisdictions. 2. Tax Groups: These are collections of tax items that are often used to simplify the application of multiple tax items to a transaction. For example, a tax group could be created for a specific state, and this group would include all the tax items relevant to that state. 3. Tax Schedules: These are used to define which Nexus is Taxable and Non-Taxable. 4. Nexus: This is a connection or presence in a particular tax jurisdiction that requires a company to collect and remit tax. 5. Customer Tax Item: You can set a default tax item on the customer record. This tax item will be used for transactions involving that customer unless overridden on the transaction itself. 6. Item Taxability: Items can be set as taxable or non-taxable. This is typically done through the item record itself. 7. Advanced Tax Setup: NetSuite also offers advanced tax setup options, such as enabling tax lookup on sales transactions and per-line taxes on transactions. Remember, the setup can vary based on the specific tax requirements of your business and the jurisdictions in which you operate. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******