Use this routine to maintain tax information by
tax jurisdiction. The system uses this routine with the Zip
Code file to determine the sales tax percentage for all taxable sales
transactions. The Sales Order Processing module uses the Zip Code file
to calculate
sales tax amounts according to the codes and their respective tax
rates as established in this file.
You must create sales tax
codes for all states and/or provinces in which you do business and
in which your vendors reside.
Also, you MUST use the standard
two-digit post office state code for all states and/or provinces,
for example:
NY = New York
CA = California
ON = Ontario
You can create sales tax codes
for all counties and municipalities in your business area that charge
additional tax percentages above the state tax rate for sales that
occur in their jurisdiction. For example, you can create a record
with a tax jurisdiction code of NYC
for New York City if your company does business in that jurisdiction.
Specify the additional flat rate charged by that tax jurisdiction.
The Sales Tax file provides
for alternate calculation rules to be used if STORIS' standard rules
do not apply. These alternate rules are programmed by STORIS.
When setting up tax jurisdictions, note that county and municipal
rates are additional
tax percentages charged within a tax jurisdiction. For example, if New
York State's tax rate is 6% and New York City charges an additional 3%,
you must create a tax code for each using different tax jurisdiction codes.
Use the Additional Tax Code fields in the Zip
Code record to indicate additional taxes for the state/province associated
with the zip code.
Until you complete
a sale and your customer takes possession of the merchandise, all monies
remain in deposits liability and still belong to the customer. Once
you complete the order, you earn the monies and owe the taxes.
If you add a new tax rate, the system does not automatically add the tax
to existing sales orders. You must access the orders and update the tax
manually - either by
Enter the code of the tax jurisdiction you want to create or edit.
When creating state or provincial codes, you must use the standard
two-letter post office abbreviation, for example:
- NY = New
York
- CA = California
- ON = Ontario
You can also create tax codes for county, municipal and national
taxes. For these codes, you can enter up to 10 alphanumeric
characters. Note that you must create a unique code for each jurisdiction
you set up.
Enter the code of the tax jurisdiction you want to create or edit.
When creating state or provincial codes, you must use the standard
two-letter post office abbreviation, for example:
- NY = New
York
- CA = California
- ON = Ontario
You can also create tax codes for county, municipal and national
taxes. Note that you must create a unique code for each jurisdiction
you set up.
General
DescriptionEnter
text that describes this tax jurisdiction. For example, if the Tax Jurisdiction
is NJ, enter NEW JERSEY in this
field.
Enter the percent of sales tax you want to charge for this jurisdiction.
You can enter up to 4 decimal places. For example, for "six
and one half percent", enter either
6.5 or
6.5000
Enter the General Ledger
account you want to charge for sales tax in this tax jurisdiction. If
you click on the Action button, the TPA GL Account Entry screen appears from which
you can choose an account. GL AccountEnter
the General Ledger account you want to charge for sales tax in this tax
jurisdiction. If you click on the Action button, the TPA GL Account Entry screen appears from which
you can choose an account.
Select the method by which you want to charge taxes
on orders. You have the following options:
Not
Applicable- this option is the default setting for
new tax jurisdictions and must always be assigned to the Local
and National tax types. This setting cannot be assigned
to the State/Province tax type.
Point
of Sale - charge tax based on the Selling Location (where
sales order was entered), regardless of where the goods are delivered
from or where the customer takes possession of the goods. The
system looks at the location record to identify the zip
code for that location, which determines the sales tax to
be calculated. For out of state sales, where the selling store
state and possession state do not match, different rules apply.
See the Selling Store Tax Exception field below.
Ship
From Location - charge tax based on the Shipping Location
(location from which the items were delivered), regardless of
where the goods are sold from or where the customer takes possession
of the goods. The system looks at the location record to identify
the zip code for that location, which determines the sales tax
to be calculated.
Point
of Possession - charge tax based on the location to which
the items were delivered (where customer takes possession of the
goods), regardless of where the goods are sold from or where the
goods were delivered from. The system looks at the customer's
ship to address to identify the zip code, which determines the
sales tax to be calculated.
Examples:
Point of Sale
If Selling Store Tax Exception
is unchecked:
The
zip code for the selling store is used for all delivery types.
If Selling Store Tax Exception
is checked:
Customer
Pickup Orders - the zip code for the pickup location is used.
Delivery
/ Direct Ship Orders - the zip code for the customer's address
is used.
Ship
From Location
Take With Orders - the
zip code for the selling store is used.
Customer Pickup Orders
- the zip code for the pickup location is used.
Delivery / Direct Ship
Orders - the zip code for the shipping location is used.
Point
of Possession
Take With Orders - the
zip code for the selling store is used.
Customer Pickup Orders
- the zip code for the pickup location is used.
Delivery / Direct Ship
Orders - the zip code for the customer's address is used.
Delivery TaxableTo apply
this tax to the sales order delivery amount for this jurisdiction, check
the box at this field. Otherwise, leave this field blank.
Installation TaxableTo apply
this tax to the sales order installation amount for this jurisdiction,
check the box at this field. Otherwise, leave this field blank.
To have the system check and recalculate the sales tax on open sales
orders each time you access an open order for this jurisdiction, check
the box at this field. If you leave this box blank, the system retains
the tax rate initially applied to the order, even if rate changes
were made. By checking this box, tax is also recalculated upon manifest
completion.
It is possible to choose this option for each jurisdiction individually,
so that a state sales tax can be retained while additional jurisdictions
within that state can be automatically recalculated (and vice-versa).
When a tax jurisdiction record is initially created, the setting for
this field automatically defaults from the Update
Tax Rate Changes field on the Advanced page of Point
of Sale Control Settings. If the box in the control settings field
is checked, this field is automatically checked. If you do not want
tax validated and re-calculated in this jurisdiction, remove the check
from this field.
Alternately, if your control settings default is not checked, when
you create jurisdiction records, this Validate Tax Rate field is not
checked and no validation takes place. You can check the box for any
jurisdictions in which you want the system to validate and re-calculate
the tax.
This field should be disabled if the Gross
Taxable Price Cap field is populated.
To charge tax on out-of-state sales, check the box at this field.
Otherwise, leave the field blank. If you check the box
at this field, the program performs normal tax calculations based
on either the point of sale, point of shipment, or point of possession
location, as specified at the Charge Tax By field.
If you leave this field blank, and the Sales Order Entry process determines
the sale is out-of-state, the program overrides (that is, zeroes out)
the calculated tax.
If you select National at the Type of Tax field, you inactivate this
field.
This field is active only when the Charge By field is set to Point
of Sale. Use this field for pickup, delivery, and direct ship orders
to assign tax jurisdictions for out of state sales.
When the selling store state and possession state do not match and
this field is checked, the
state and local tax jurisdictions are assigned based on the zip code
of where possession of the merchandise occurs (i.e. for pickups, the
zip code of the warehouse where the merchandise is picked up; for
deliveries and direct ships the zip code of the order’s shipping address),
regardless of whether or not the possession state is set to charge
tax by Point of Possession.
If
this field is not checked, the state
and local tax jurisdictions are set based on the selling store’s location.
This field does not affect in-state orders.
If the assigned tax jurisdictions are NOT set to tax out of state sales
via the Tax
Out of State Sales setting, the system calculates $0.00 tax.
If using the Alternate
Tax Interface, use this field to bypass the interface for the
selected tax jurisdiction and use STORIS' standard tax routines. If
not using the Alternate Tax Interface, this field is inactive. This
field is active only if the Alternate Tax Interface is active and
the current tax jurisdiction is defined as a State/Province.
If you leave this field blank, the system uses the Alternate Tax
Interface, transmitting a record to the tax provider and receiving
tax information in return. If you check this box, the system
uses the standard STORIS tax routines to calculate the tax for the
specified jurisdiction.
If using CCH and you choose the bypass option, tax liability
reporting from CCH is not available for the selected state and the
local jurisdictions within that state. You must manually maintain
the proper tax rates for these states and any local jurisdictions
within these states.
If this jurisdiction is eligible for sales tax adjustments when
open item or revolving balances are manually charged off via the Bad
Debt tab of Maintain
Customer Balances, check this box. Otherwise, leave the
box blank.
If you use a third party
tax provider via the Alternate
Tax Interface, this field is not used. Sales tax adjustments are
calculated by the alternate tax provider and returned to STORIS for
G/L posting. For new jurisdictions returned by the tax provider, this
field is automatically set to NOT checked when the records are created.
Enter the maximum sales amount (if any) you want to tax for orders
entered within the selected tax jurisdiction. If you enter a dollar
amount here, then for taxable line items on a sales order, the system
exempts tax on the portion (if any) of the order price that exceeds
this amount.
If the order contains multiple line item types such as a delivery
and a pickup, the system applies the cap separately to the totals
of each line item type on the order. For example, assume you specify
a gross taxable price cap of $500. Further assume you have an
order for $2,000 worth of merchandise, and the order contains two
delivery line items and three customer pickup line items. If
the total of the delivery items is $600, the system taxes $500 of
that amount. Then, for the $1,400 worth of pickup items, the
system taxes $500 of that amount.
This field is primarily used for local taxes (municipal, etc.).
When this field is populated, the Validate
Tax Rate field should not be enabled.
Use
this field to apply a tax rate cap (if any) for this tax jurisdiction.
Enter the number (up to four decimal places) that represents the maximum
percentage you want to use. For this field to be active, you must
select State/Province at the Type of Tax field.
For example, if you enter 10 here,
order entry programs allow a maximum sales tax of 10% for orders placed
in the current tax jurisdiction, excluding national tax. That is,
if the combination of all taxes (for example, state, county, local,
etc.), not including national tax, exceeds 10%, the system adjusts
the tax so that total tax does not exceed the cap percentage. The
system reviews all pertinent jurisdictions, noting the order in which
they were added to the tax list, and reduces the tax amount from the
jurisdictions on the bottom of the list. The general taxing order
is as follows:
national
tax code (if one exists)
state
tax code
local
jurisdictions in the order they appear in the Zip Code file
So, assume the jurisdiction in our example applies the following
taxes :
National Tax = omitted
from this calculation
State Tax = 7%
Local Tax 1 = 2%
Local Tax 2 = 2%
Local Tax 3 = 2%
for a total of 13%. The system adjusts the calculation accordingly:
State Tax = 7%
Local Tax 1 = 2%
Local Tax 2 = 1%
Local Tax 3 = 0%
for a total of 10%. When the tax cap is reached (see Local Tax 2),
the system adjusts that tax amount to maintain the cap level, then
adds no tax from any subsequent jurisdictions (see Local Tax 3).
Tax Override ClassEnter
the codes of the tax classes (if any) you want to use to override the
tax status of certain sales order line items. If you click on the Search
button, a list of tax classes appears from which you can choose one or
more.
For sales order line items with a tax class specified at the Tax Class
field in the Advanced Product
Settings, the system searches all tax jurisdictions associated with
the sales order. If one or more of those tax jurisdictions has a
tax class that matches the tax class of the sales order line item, the
program reverses the tax status of the sales order (that is, from taxable
to not taxable, or vice versa).
If using the Alternate
Tax Interface and Vertex is your provider, this field affects the
system only if STORIS is selected at the Product Taxable Status field
in the Alternate
Tax Interface Control Settings. If using the Alternate Tax Interface
and CCH is your provider, this field does not affect the system.
Alternate Calculations
STORIS' standard tax calculation rules may not be appropriate for all
situations or for all users. Therefore, STORIS provides alternate calculation
processes to accommodate users' needs.
The processes can exist for
any combination of the three steps in the sales tax calculation process
(Local Tax Jurisdiction determination, Taxable Merchandise calculation,
and Sales Tax calculation). A drop-down box displays the available
calculation codes for each of the three steps.
Use the Alternate Calculations
portion of the screen to indicate and maintain these alternate tax
calculation rules for the current tax code.
The alternate calculation
processes are identified by specific calculation codes that were assigned
by STORIS and contain user-defined settings. Contact your STORIS representative
for further detail on the availability of these alternate calculation
processes.
The Miscellaneous Fee/Charge
field provides an additional way to apply fees or charges to orders.
Local Jurisdiction(LOCKED Field – STORIS access
only!) To use a different set of rules from the STORIS standard when determining
which tax jurisdictions apply, enter a calculation code. If you
click on the Arrow, a list of alternate local jurisdiction processes appears
from which you can choose. If codes have been established, use the
Action button to access a window in which you can indicate specific criteria.
(LOCKED Field – STORIS access only!) Use this field to specify a
tax system different from STORIS' standard set of rules for determining
taxable merchandise amounts. If you click on the Arrow, the following
alternate taxable merchandise calculations are available:
TN
Single Item Price Cap
TN
Single Item Price Range
AR
Full Order Tax Cap
Imbedded
Tax
If you select TN
Single Item Price Cap or TN
Single Item Price Range, you can click on their associated
Action buttons to access the Alternate
Taxable Merchandise Calculation window.
To apply a tax cap when an order is invoiced multiple times, choose
AR Full Order Tax Cap. This
option reviews previous invoicing to determine the amount of tax to
calculate for a selected jurisdiction and prevents the total tax from
all invoices for that order from going over the cap.
To imbed national tax amounts in line
item prices, choose Imbedded
Tax. Imbedded tax can be used for national tax only.
Sales Tax(LOCKED
Field – STORIS access only!) Use this field to specify a tax calculation
method other than the standard method (that is, Tax Rate x Taxable Merchandise).
If you click on the arrow, a list of alternate sales tax calculation codes
(if any) appears, from which you can make a selection. If you click on
the Action button, you can enter specific criteria.
Miscellaneous Fee/Charge Use this
field to specify one or more miscellaneous
fee/charges you want to associate with this tax jurisdiction. You
can enter a fee code directly, or if you click on the Search button, a
list of fees/charges appears from which you can choose one or more. If
you click on the Action button, the Multiple Miscellaneous Fee Selection
window appears from which you can choose one or more fees.
The order entry process identifies the tax jurisdiction associated with
the point of customer possession of merchandise. Use this field
to specify the miscellaneous fees (if any) you want to apply to orders
whose point of possession occurs within the selected tax jurisdiction.
Note that you can restrict the application of fees associated with this
tax jurisdiction to a list of stores via the Apply Only When Written at
Store(s) field in the Miscellaneous Fee Settings.
The total of the fees applied appears at the Fees/Charges field on the
Payment tab of the selected order entry routine. Note that the fee
total can include fees associated with one or more locations.
PercentEnter
the percentage to be used when calculating a service charge. This field
is maintained with two (2) decimal places. The percentage you enter here
works in conjunction with the Service Charge Days field in the Accounts
Receivable Control Settings. When a transaction is overdue by the
number of days found in the Service Charge Days field, a service charge
is generated.
GL AccountIndicate
the General Ledger Account to be credited when service charges are generated.
Click the Action button to access the GL
Account Entry Screen, where you can choose an account number.
The Revolving tab is accessible only if Revolving
Receivables is active on your system and the Type of Tax field in
this file is set to State/Province.
Late Fees
Calculated as aIndicate
whether you are assessing late fees as a Percentage
of the amount due or as a Fixed Amount.
The default is Percentage. If you select Percentage, the Standard % and
Minimum $ fields are active. If you select Fixed Amount, the Fixed $ field
is active.
Standard %Use this
field when the "Calculated as a" field is set to Percentage,
indicating you assess late fees as a percentage of the amount due. Specify
the standard percentage rate you use when calculating late charges on
delinquent revolving plans in this jurisdiction.
Minimum $You can
use this field to establish the minimum late charge amount that can be
assessed in this jurisdiction.
Maximum $ You can use this optional
field to establish the maximum late fee amount that can be assessed on
a plan or account (depending on Assess At setting above). Enter a dollar
amount of .01 to 99.99.
Fixed $ If you
assess late fees based on a fixed amount ("Calculated as a"
field), use this field to enter the late fee amount. You can enter a value
of .01 to 99.99.
Grace DaysUse this
optional field to indicate the number of days that a revolving payment
can be late before late fees are assessed. If you need to establish different
late grace days for different states, use this field.
If you leave this field blank, the system uses the Number of Grace Days
field in your Account
Statement Cycling Control Settings to determine the customer's late
fee "as of" date. The "as of" date is calculated by
adding the grace days, established here or in the Account Statement Cycling
Control Settings, to the current cycle's payment due date.
Select how you want to assess
late fees. Your options are:
Per Payment Plan - Choose
this option to assess late fees per revolving plan. This is the
default for this setting. If you select the Per Payment Plan option,
each revolving plan that has an unpaid payment is assessed the
late fee amount.
By Customer Account - Choose
this option to assess late fees per revolving customer account.
You can select this option only if a Master Plan has been indicated
in your Revolving Receivables Control
Settings. When this option is selected, the customer's master
plan is assessed the late fee amount if any of their revolving
plans has an unpaid payment.
Only one late fee, not to exceed the state statutory amount, can be
applied to the master revolving plan per billing
cycle.
If MMP is PaidUse this
field to indicate whether or not to assess additional late fees when at
least the minimum MMP amount has been paid for this cycle period. To assess
late fees when an MMP is past due, regardless of the payment amount received,
check the box at this field. If the box is not checked and at least the
minimum MMP amount has been paid prior to the late "as of" date
(see Late Fee Grace Days), no additional late fee is assessed. The default
for this field is checked.
To Existing Finance ChargesIf you
include finance charges in the balance that the late fee is calculated
against, check this box. Otherwise, leave the box blank.
To Unpaid Finance Charge FeesIf you
include finance charge fees (additional fees assessed on finance charges)
in the balance that the late fee is calculated against, check this box.
Otherwise, leave the box blank. This field is only active if a Finance
Charge Fee Rate has been specified.
On Insurance PremiumsIf you
include insurance charges in the balance that the late fee is calculated
against, check this box. Otherwise, leave the box blank.
Existing Late ChargesThis setting
is available to you only if the "Calculated as a" field (above)
is set to Percentage and you have checked the box at the Compound Late
Fees field (below).
If you include unpaid late charges in the balance that the late fee is
calculated against, check the box. Otherwise, leave the box blank.
This field is used during the late fee calculation routine that
runs as part of End of Day.
If you check this box,
late fees are calculated on all unpaid MMP's even if a prior late
fee was calculated, provided the plan is not in dispute. (See
note below.)
The amount that the late
fee is calculated against includes the unpaid MMP amount, and
can also include unpaid Finance Charges, Insurance Premiums, Late
Charges and/or Finance Charge Fees, depending on the Late Fee
Rules above.
If you leave the box blank,
and a late fee was previously calculated and added to an unpaid
MMP, late fees are not calculated for that MMP.
The default for this setting
is unchecked.
If any portion
of the customer's revolving plan balance has been placed in dispute, the
system does not assess late fees (compound or otherwise) on any unpaid
MMP's for that plan.
Charge Interest
Maximum %Use this
field to enter the maximum interest percentage rate that this jurisdiction
allows. The rate you enter in this field overrides the Percentage Rate
% in the Revolving Receivables
Payment Plans, provided the payment plan rate is higher than the rate
you entered here.
Include Paid in Full in Average Daily BalanceTo calculate
the Average Daily Balance for the cycle even if the customer's plan is
paid off by the cycle date, check this box. To override the Average
Daily Balance to zero if the customer's plan is paid off by the cycle
date, leave the box blank.
Use this setting to determine if interest should be assessed during
the first cycle for an order added to a revolving plan. Click
the Arrow button to select one of the following options:
Never - Customers are
not assessed interest on the completed order's revolving balance
during the first cycle.
Always - Always charge
interest on completed orders that were added to the revolving
plan since the last cycle.
Only if previous statement
balance - Assess interest during the first cycle for an order
added to a revolving plan if the customer had a balance on the
last generated statement.
If you check the box, the customer's finance charges are calculated based
on one or more interest rates, depending on the settings in the Percentage
Break Level Table. The amount subject to finance charges is compared
against the table and each portion of the customer’s balance greater than
or equal to a break level in the table is charged the associated interest
rate.
If you do not check the box at this field, the interest rate is determined
using the current plan balance that is subject to finance charges and
the associated interest rate from the Percentage Break Level Table.
Click this button to access the Statement
Notification Days screen, where you specify when the customer
is to receive automatic notification on their statement regarding
promotional interest expiration, no payment period expiration, waived
interest charge-backs, and plan transfers. You also use this screen
to indicate the section of the statement where the notification message
is to appear.
Finance Charge Fee
RateIf this state allows an additional
fee to be assessed on finance charges, use this field to indicate the
rate. The field accepts a numeric entry of up to 4 decimal places. Once
you enter a rate here, the (Applicable to) Finance Charge Fee and GL Account
fields become active. If you leave this optional field blank, no additional
fee is added.
GL AccountTo track
finance charge fees added during the cycling process, enter the GL account
number in this field. To access the Read-Only
Lookup Window where you can select a specific GL account number, click
the Search button. To access the GL
Account Entry Screen, click the Action button.
Installment
The Installment
tab is accessible only if Advanced Receivables
is active on your system and the Type of Tax field in this file is set
to State/Province.
Activate a Setting by Selecting a Checkbox
LATE FEE - Compound Delinquent Late Charges Check
the box at this field if late fees can be assessed on delinquent late
fee amounts (i.e. compounded) in this tax jurisdiction. Otherwise, leave
this check box blank. The default setting is unchecked.
Non-Filing Fee Table Use this
optional field to establish and maintain a table of default non-filing
fees to be automatically assigned based on financed amount during Installment
Worksheet entry. Click the Action button to access the Non-Filing
Fee Table.
Interest Table You can use this optional
field to establish and maintain a table of default interest rates for
this jurisdiction based on financed amount. The interest rates defined
in this table are used if there is no interest rate defined in the installment plan settings.
Click the Action button to access the Interest
Rate Table window, where you can define the rules for interest calculations
in this jurisdiction.
Minimum Finance Charge Table You can
use this optional field to establish and maintain a table of minimum finance
charge amounts for this jurisdiction based on financed amount. Click the
Action button to access the Minimum
Finance Charge Table.
Standard Late Charge You can use this field to
specify a standard late fee amount to be charged on late installment payments
in this jurisdiction. If you enter an amount in this field, the Standard
Late Percent, Minimum Late Charge, and Maximum Late Fee fields become
inactive. If you do not enter a value in either the Late Charge or Late
Percent field, no late fees are assessed on contracts in this jurisdiction.
Standard Late Percent To specify a standard late
fee percentage to be used to calculate late fees on installment contracts
in this jurisdiction, enter the percent here. If you enter a percentage
in this field, the Standard Late Charge field becomes inactive. If you
do not enter a value in either the Late Charge or Late Percent field,
no late fees are assessed on contracts in this jurisdiction.
Minimum Late Charge Use this field to define
the minimum late fee amount that can be assessed on installment contracts
in this jurisdiction. If you do not establish a minimum late fee amount,
a late fee of as little as one penny can be assessed.
Maximum Late Fee Use this field to define
the maximum late fee amount that can be assessed on installment contracts
in this jurisdiction. If you leave this field blank, no maximum late fee
amount is established.
Late Fee Grace Days Enter the number of days
an installment payment can be late before late fees are assessed for contracts
in this jurisdiction.
When setting up tax jurisdictions, note that county and municipal
rates are additional
tax percentages charged within a tax jurisdiction. For example, if New
York State's tax rate is 6% and New York City charges an additional 3%,
you must create a tax code for each using different tax jurisdiction codes.
Use the Additional Tax Code fields in the Zip
Code record to indicate additional taxes for the state/province associated
with the zip code.
