Setting Up Address Taxability
To use this feature, there are several steps to complete. There are some steps that you only perform if you purchased tax files from CCH.
To use the Address Taxability feature, you must be authorized. (There’s no cost associated with authorization.) See About Authorizing Address Taxability.
To use CCH taxing files with Address Taxability, you must be authorized for CCH Tax Import. See About Authorizing Address Taxability.
Schedule a date to go live on Address Taxability.
Optional: Subscribe to CCH taxing so that you have access to the current tax files. Contact ECi to discuss purchase.
Note: We recommend that you only purchase taxes for the states with which you do business. Also, you can purchase the ability to tax by item from CCH.
Optional: Download your tax files from CCH monthly and run the conversion. See Downloading and Converting Your CCH Tax File.
Set the Address Taxability parameters. See Address Taxability Parameters. Do not set the Activate Address Taxability box in the Address Taxability Parameters window at this time.
Set up geographic locations. You can set up geographic locations and/or clean up the locations, as needed. See Setting Up Geographic Locations.
Optional: If you don’t purchase tax files from CCH, you may can run the ;SPC:ADDR program to help with set up. See Running the ;SPC:ADDR Program.
Note: Using the ;SPC:ADDR program only creates zip codes for taxable customers. If you have customers in your database set up as non-taxable, you must manually go in and set up those zip codes. If you enter an order for an existing non-taxable customer and change the order to taxable, the order may not be taxed upon completion.
You must set up a tax authority for each state. See Setting Up Tax Authorities.
You can set up the regions for which you collect sales tax. See Setting Up Region Taxability.
You can add state tax percent. See Setting Up Tax Jurisdictions.
You can view and modify product groups. See Setting Up Product Groups.
You can view or modify item taxability information for specific tax location, type, and category. See Setting Up Item Taxability.
You can view the total tax percent for a specific address and product group. See Viewing Tax Validation.
Mass changes may need to be made to your Item database if you have any items that require special taxing rules. You set up two boxes in the Item Settings tab: Product Group and Item Code. (If you are not authorized for Address Taxability, you cannot see these boxes.) You can purchase the ability to tax by item from CCH. If you do this, go to the Item Settings tab and set up each item's product group and item code. If you don't purchase taxing by item, you can go to the Item Taxability window and set product groups and item codes. For more information on setting up items for address taxability, click here.
With Address Taxability, you may need to check the Taxable box in the Customer Order Entry tab.
Because sales tax information is stored in the P-TAX file, there are parameters that you should set to ensure that credit invoices work properly.
You must set the Use Next Invoice # for Credits field in the (LG5) screen to X to allow the system to create a unique invoice number for credit invoices.
You must set the Apply Charge Credits to Original Invoice field in the (LGB) screen to Y to ensure the unique credit invoice number is applied to the original invoice number.
For testing purposes, activate Address Taxability. To do so, you must select the Activate Address Taxability box in the Address Taxability Parameters window. See Address Taxability Parameters.
Next, create some test orders using Address Taxability. After you test, delete the test orders.
Go back to the Address Taxability Parameters window and clear the Activate Address Taxability box until you are ready to go live.
When ready to go live, go to the Address Taxability Parameters window and check the Activate Address Taxability box.
Before you can run reports, you must import your data into SQL. To do this, open the EBS SQL Import Control Panel. Click Import Data. In the Full Import tab, scroll down and click the check box to select Tax Geocode. Click Process to import the files.
After going live, changes may need to be made to your month-end procs. If you print a standard sales tax report as part of your month-end procedures and activate Address Taxability, your sales tax report will not print due to new prompts that have been added. Adjust your month-end prompts to these new prompts. Also, any open orders will be taxed according to the old rules (using tax districts).
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