What’s the difference between “AND” and “OR” in the Logical Operator?

The “Logical Operator” determines how client and product conditions are evaluated together when applying an exemption rule, and has two options:

• “AND”: the exemption rule is applied only when both the client condition and the product condition are met simultaneously. If only one of the two conditions is met without the other, the exemption rule is completely cancelled, and tax is applied normally.
  • Example: if the client is tax-exempt (client condition met), but the specified product is normally taxable (product condition not met), the exemption rule is cancelled and tax is applied to the product, despite the client matching the exemption condition.
• “OR”: the exemption rule is applied when just one condition from either section (Clients or Products) is met, regardless of the other condition.
  • Example: if the selected client matches the exemption conditions, but the product or service doesn’t match the exemption conditions, the system still applies the exemption; because the client condition being met alone is sufficient to enforce the exemption, and the user is prevented from selecting a tax rate.

Note: the “Logical Operator” field only appears when the value selected in the “Apply Rule To” field is “Clients and Products.”