Tax Setup Question

spena

Hi There,

I have an inventory item ABC. Item ABC is taxable to customer RETAIL but is nontaxable to customer WHOLESALE.

I then have another item XYZ that is always taxable, regardless of the customer.

I have an order for customer WHOLESALE. The order will have item ABC that needs to be tax free but also has item XYZ that must be taxable. What is the proper way to set this up?

So far, I have created two tax groups. One is called Taxable and the other is called Nontaxable.

I have also setup a taxable Tax Area (make up of taxable jurisdictions) and a nontaxable Tax Area (made up of a nontaxable jurisdiction).

What tax group should I assign to item ABC and what tax area should I assign to the customer?

Please advise.

Thanks!

Steve