'Cash and Carry' sales use the default tax rate based on the store's locations. However, there may be situations where sales tax should be calculated on the address of the customer purchasing the items - such as phone sales and deliveries.
For Orders in Progress being shipped or delivered, the system will automatically adjust the taxes charged so that they are based on the Ship Address of the customer. So when you change the ship/deliver address of the Customer attached to the order, the tax rate and taxes charged should reflect the customer's ship address. This only occurs for Orders in Progress, and not standard cash and carry transactions.
For example, let's say that there is a customer that lives in Atherton CA but wants to ship to a house in San Diego CA. When the Order in Progress is initially created, the tax is calculated based on the default tax rate of the store (in this case Atherton which has a combined tax rate of 9%). In this case, the taxes based on the Atherton CA location would be $85.50.
To change the tax rate on the Order in Progress to the rates applicable to the buyer's address, the first step is to make sure that MicroBiz Cloud includes the tax rates of the customer's shipping address- in this case San Diego CA (8%).
The next step is to enter the ship address for the customer. In this case a ship address in San Diego CA is added at a 9% rate (CA tax of 6.75 plus County/City tax of 1.75%).
When the ship address (managed through the little shipping box on customer panel) changes to San Diego, the tax rate drops from 9% to 8% and the amount charged for taxes decreases from $86 to $76.
Note: Many customer addresses do not contain the ‘county’ which is often critical in US sales tax calculations. So you may need to define tax rates by zip code.