How to create a purchase order with an exempt item in NetSuite SuiteTax with taxes from Tax Determination.

Products and services can be partially or fully exempt based on the tax laws in the specific jurisdictions. Tax Determination's tax rules take into consideration all the tax laws applicable in all jurisdictions and if you map your products and services to a Goods/Service Code in Tax Determination, you'll get accurate tax determination for them including all valid exemptions.

1. Go to Transactions > Purchase > Enter Purchase Orders.
2. Choose a vendor from the Vendor dropdown.
3. Go to the Items tab.
4. From the Item dropdown, select an item that has been mapped to an exempt Goods/Service Code.
5. Enter an amount into the Quantity field. Click Add.
6. Click Preview Tax.
7. Click the Tax Details tab and verify that the appropriate exemptions were applied. Click Save.