 The next thing we need to look at are the items that we set up in the prior presentations because if I hit the plus button up top, we're going to be calculating the sales tax possibly when we create an invoice or the sales receipt and the primary item that's going to drive that just to open an invoice and take a look at it will be the item. The item is going to be the thing that's going to say, hey, is this thing subject to sales tax or not? So now we want to go over to our items and look at them. So I'm going to leave without saving. I'm going to say yes, and then I'm going to go on over to my items, which is under the sales tab. You'll recall if you're under the business view, it's under the get paid and pay tab product and services items. And I'm going to close up the hamburger and then scroll down. Now I think by default it's going to apply the sales tax. So if I go in, say to editing an inventory item and I scroll down, now we have this sales tax item here. It says taxes standard rate will apply sales tax based on location only. So you could go into this and add more detail. So they've got information in here so you can browse the item. But notice down here, we have it as taxable based on location. So I'm going to keep that as the default. And so I'm going to say that's great. Let's go on to the service items then, which I think I'm going to have to adjust and remove the sales tax. I'm going to say the service items will not be subject to the sales tax. So I'm going to just edit the service items. This is why it probably in some ways might be easier to turn on the sales tax and then add your items. But I think it's easier to see what's happening with the sales tax by doing this way. So that's why we've done it this way. So we're going to edit the sales tax. And this one I'm going to say is non taxable. So I'm just going to do this for all the service items. So I've made that service item non taxable, save it and close it. So that was this service item. I'm going to do the same for this one edit this service item. And I'm going to say taxes and say that it's non taxable. And that and say done. And that's for the tuning. So I'm going to save it and close it. And then the late fees. I'm going to edit and go down to the taxes and say this is going to be non taxable done, save and close for the late fees. The service charge. I'm going to edit and scroll down and say that it's going to be non taxable, save it. And that's for the services. So I'm going to save and close and then the hours. I'm going to edit and say that it is non taxable two more times. Non taxable boom. And then diagnostics edit. And then I'm going to say that it is non taxable for that item. Boom, save it. And then one more time on the hourly service non taxable. And there we have it. So now the inventory items are taxable. And I'm saying the service items are not taxable. And so we should be able to see that when we make a sales item now. So if I hit. So let's go to the plus button up top and just add a test transaction. We won't record it, but just to test it out. Let's open up an invoice. You can also do a sales receipt, but we'll just go with an invoice. We made up a mock customer, which we just called a a a. So I'm just going to say that a a a customer just to test it out. And then we're going to go down to the products. The products should be the taxable items. So I'm going to choose say an ELP. And you can see it has a checkbox automatically as it being a taxable item. Now, sometimes you have to like click off on the second line to make sure that it applies the tax properly down below. So now we've got a $500. That's what we charged for it. And then the sales tax is being applied. Notice it's being applied by location. Now the customer doesn't have a location up top. So therefore it's being applied by what we're saying is our sales location, which is the California location. And that's where it's coming up with this 47550. You can look at the math related to it. If I go into here, how your sales tax is calculated. We've got the location based on where you sold your item. You need to collect sales tax here. So notice it's actually three things that we're collecting. The California rate, the Los Angeles County and the Los Angeles County district. And that adds up to that 9.5% on the sales tax that we're adding. So notice it gets a little bit complex and QuickBooks is actually quite nicely doing that for us. And the complexity will differ based on location, of course.