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Tax Details

  • 1.  Tax Details

    Posted 9 days ago
    Hi All,

    Hoping someone can shed some light on the "Tax Details" and the function of entries in this table.  After reviewing the relation ship between tax Group Codes, Tax Groups, and Tax Details, I believe I have an understanding, but need some confirmation.

    It appears to me that these entries are used to calculate special taxes for specific Tax Group Codes.  For instance, if a particular Tax Group Code is taxed differently from any normally applicable tax, the entries in this table will be used for calculating the tax instead of the standard tax for the Jurisdiction.  For instance, looking at the 2 items in the screen shot below, no tax would be calculated for an item belonging to Tax Group Code 5601299000 US X, while an item belonging to Tax Group Code 5607909000 US X would have an additional 10% tax added.  Correct?

    Likewise, an item belonging to a Tax Group Code that does not have a matching entry in the "Tax Details" table would have the tax calculated based on the applicable Tax Jurisdiction, in this case again 0 tax calculated.



    Additionally, I am also understanding that an "Empty" entry for a jurisdiction causes it to be the "default" tax for any jurisdiction.  So referencing the entries from the Tax Jurisdictions above and the Tax Details below, items belonging to a Tax Group Code without an entry in "Tax Details" on an SO with an applicable "MI" "Tax Jurisdiction" would have the 6% tax calculated while items belonging to the 2 Tax Group Codes listed would have no tax calculated?



    Currently, we have over 2000 entries in this table, and I this many entries is unnecessary, particularly when the "Tax Below Maximum", Maximum Amount/Qty.", and "Tax above Maximum" columns are all "0".

    Any insight you might be able to provide will be appreciated.

    Thanks!

    ------------------------------
    Robert Michon
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  • 2.  RE: Tax Details

    Posted 8 days ago
    Robert, it sounds like you have the right understanding of how these tables and codes work together. It seems that you will need a minimum of two Tax Detail records for each Tax Jurisdiction-one with an actual rate and one with a zero rate. That will allow you to mix taxable and nontaxable lines on the same sales order, sales invoice, purchase order, or purchase invoice.

    I noticed that you are leaving the effective date blank. We never leave that blank as it gives us an opportunity to enter new rates for a jurisdiction while keeping the old rate as well, which allows for concurrent processing of purchase invoices on both sides of the rate change.

    In the wake of the U.S. Supreme Court ruling on Wayfair vs. South Dakota, we now have economic nexus in 18 states, and the number is expected to increase. Previously, we only had to deal with sales and use taxes in our home state. We currently have over 3,800 records in the Tax Details table, and that number grows every month.

    Figuring out a better way to organize these tables and codes would be wonderful.

    Blessings.

    ------------------------------
    Ken Elliott
    Director, Financial Operations
    Billy Graham Evangelistic Association
    Charlotte NC
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  • 3.  RE: Tax Details

    Posted 7 days ago
    As you analyze your setup, don't forget reporting!

    Not only does your setup need to calculate the correct tax, it needs to store the details for reporting. It's my understanding that different jurisdictions require different levels of details. Your setup should support this.

    ------------------------------
    Ted Johnston
    IT Director
    Streicher's
    Minneapolis MN
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  • 4.  RE: Tax Details

    TOP CONTRIBUTOR
    Posted 7 days ago
    Sounds like you have the basics.  The Tax Details table uses a combination of the Tax Group Code (assigned on the item card) and the Tax Area Code (assigned on customer cards) to determine the tax rates.  This then allows different tax rates for different types of items.  There is more information in the library with links to past Summit presentations (see below).

    https://www.navug.com/viewdocument/fin27-wait-im-supposed-to-collect?CommunityKey=37d5911b-6386-49a9-a834-4b759ef91f81&tab=librarydocuments

    ------------------------------
    David Wiser
    Project Manager
    Tigunia
    Seattle WA
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