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-rw-r--r--doc/manual/LedgerSMB-manual.tex11
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+++ b/doc/manual/LedgerSMB-manual.tex
@@ -471,7 +471,16 @@ in the System submenu.
\subsection{Taxes, Defaults, and Preferences}
-
+One of the new features in 1.2 is the modular sales tax system and the simple
+sales tax module. This allows one to install different tax modules and then
+select which taxes are applied by which programming modules. The sales tax
+module has access to everything on the submitted form so it is able to make
+complex determinations on what is taxable based on arbitrary criteria.
+
+The tax rules drop-down box allows one to select any installed tax module
+(LedgerSMB 1.2 ships only with the simple module), while the ordering is an
+integer which allows one to specify a tax run which occurs on the form after
+any rules with lower entries in this box. This allows for compounding of sales tax (for example, when PST applies to the total and GST as well).
\subsubsection{Adding A Sales Tax Account}