Tax Codes

The tax code identifies the item as belonging, for tax purposes, to a particular merchandise category. For example, common tax codes are TAXABLE and EXEMPT to identify items that are tax and those that are not. The tax code applied to an item is examined by Prism when calculating item tax. The tax rule for that specific tax code in the current tax area determines the tax rate applied to the item. By default, new items are assigned a Tax Code of "TAX". Depending on the item and the locale, you can mark items as EXEMPT. If Luxury or other speciality taxes are used, you can define tax codes for those, too.
To add a Tax Code, click the Add button. Enter a Tax Code Name. Click Save.
Define Tax Codes
Navigate to Admin Console - Node Preferences - Taxes - Tax Areas.
To add a new tax code, in the Tax Codes part of the screen click the Add button. Type a name (12 characters max). Click Save.

To change an item's tax code:
Prism automatically assigns the first tax code defined in to each item in inventory. If that code is acceptable there is no need to do anything. If you wish to change the code, use the following procedure.
Select a tax code from the drop-down list in the Tax Code field. All tax codes defined in Preferences are available.
Save the changes.