About Address Taxability
Address Taxability allows you to have a tax table on your server so you can update tax tables on a regular basis. This provides you with the flexibility of maintaining tax information for customers nationwide. Tax rates are not only different from state to state or city to city, rates may differ within a zip code or city limits.
Address Taxability allows you to set up individual items so that they can be taxed correctly, for example, some items may be only taxable in a specific jurisdiction. You can easily set up taxability by state. State, county, city, and other taxes can now be recorded separately. If a state tax changes, one field is populated for the change.
Previously, if you needed to change a tax district, you lost all the previous information. With Address Taxability, you can change the tax district or percentages and the system retains all the history.
With Address Taxability, item taxability is no longer tied to the general ledger department or item SIC code.
Before using Address Taxability, you must decide if you are going to enter the tax information manually or purchase tax files from CCH. Both applications must be authorized in the DDMS system before you can use them. First, you must authorize Address Taxability then if you plan to use CCH tax files, you must also be authorized for CCH.
Note: CCH assigns a geographical code to each tax table. This code is called a Geocode. Address Taxability applies this same logic to provide you with the flexibility of using CCH tax tables or creating your own through Address Taxability.
Once you’ve made this decision, there are certain steps you must follow to set up. Some of the steps are different depending on whether you are using the CCH tax files. This handout outlines the steps for both methods. Make sure you refer to the proper headings to set up.
In Order Entry, taxing follows the following order:
Zip code.
Zip code with two different cities.
Uses first finds. For example, if you have a city that is in two different counties, if you don’t have the taxing set up correctly, the system will tax on the first find which might be the wrong county.
Matches on city and state.
If multiple cities, matches on the first city found.
These checks are performed in the background. To verify, you must check the tax total in the Order Entry Order Totals tab.
There are also fields added to Report Writer in P-TAX, P-GLOBAL, I-MASTER, and V-ALIAS to enhance your reporting capabilities. This information is also supplied to SQL Reporting. There is a new Sales report called Sales Tax (Address Taxability) that allows you to view tax totals by state, county, city, and order number. There’s also a new CCH Tax report in the (UR) Sales Reports screen.
Other new files include:
T-AUTH - a list of taxing authorities.
T-CODE - a list of various codes used by the software, for example state codes.
T-ITEM - a list of product groups and item codes.
For all the steps needed to set up Address Taxability, go to Setting Up Address Taxability.
Return to:
See also:
In the Vendor Alias Dialog Box
In the Add Alias Vendor Dialog Box
In the Change Alias Information Dialog Box
In the View Alias Information Dialog Box
In the Order Entry Item Settings Dialog Box
In the Order Entry Uncataloged Item Information Dialog Box
In the Order Entry Add Freight Dialog Box