Sales Tax
IBS Sales Tax is designed to work with your company's order entry and invoicing processes. Sales and Use tax rates are provided for all 50 states, U.S. Territories and Possessions, and Canada. Look-up and calculation capabilities are available by postal code, GEO code, county, city, or state.
HIGHLIGHTS OF FEATURES & BENEFITS
- Look-up both current and previous Sales and Use tax rates, Transit tax rates or any other "Sales Tax" levied by a municipality
- View state, county, city, town, and transit portions of the Sales and Use tax rate
- Automatically calculate Sales and Use tax on the amount you enter
- Look-up tax rates by postal code, GEO code, county, city, or state
- Reporting is available via printouts
- Updates are provided via internet download.
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IBS Sales Tax
IBS Sales Tax is a computerized Sales and Use tax rate database. It provides look-up and calculation capabilities for Sales and Use tax rates for all 50 states, U.S. Territories and Possessions, and Canada. The database contains current state, county, city, transit, and any other required rates that make up total Sales and Use tax. The solution allows you to link your order entry and invoicing processes with the IBS Enterprise software solution.
Functionality
Monthly updates keep you current with tax rate changes. With menu item selections, you can:
- Look-up both current and previous Sales and Use tax rates, Transit tax rates or any other "Sales Tax" levied by a municipality
- View state, county, city, town, and transit portions of the Sales and Use tax rate
- Automatically calculate Sales and Use tax on the amount you enter
- Look-up tax rates by postal code, GEO code, county, city, or state
- Reporting is available via printouts
- Updates are provided via internet download.
Implementation
Once the solution is installed, implementation is simplified as the taxation file import and rate retrieval program has three options;
(a) only retrieve new rates, (b) update the customer file with the appropriate GEO code and tax rates associated with the address(es) of the customer(s), or (c) update existing open sales orders with any new rates.
A new menu item is added with the various options to retrieve the latest tax rates, update the customer file, open sales orders or any combination of the three.
If any missing or invalid customer addresses are found in the customer file, the relevant information is printed on an error listing, allowing you to update the customer's information appropriately.
Once an address is corrected, the system will assign the appropriate GEO code immediately. If multiple GEO codes exist for the city, state and postal code, the user has the ability to select one from a list of GEO codes that are appropriate for the area in question. At any point in this process, the user may view the total tax rate breakdown.
Updates
IBS updates the sales tax download on a monthly basis. The "Taxation file import" may be automatically scheduled to run the last day of the month in order to capture new rates at the right time.
GEO Code Retrieval
When adding new customers or maintaining existing ones, a new GEO Code Retrieval screen gives you the option to view all tax jurisdictions, as well as, a breakdown of the total rate for any given combination of state, city, county or postal code. At any time in this process, you may view the rate breakdown for a given address. For example: If you have the first five digits of a U.S. Zip code, the system will allow you to select from a list of rates available within that given postal code.
Exception Handling
Unique customer and item exemptions are handled via a new menu option: "Customer/item exemption." This table allows you to define specific exemption rules for individual customers. For example, if a customer is taxable, but has an exemption only for certain items, this table will accommodate those exemptions.
Taxability of freight may vary by state or county. Therefore, a new menu item called "Work with tax exemption matrix" allows you to exempt freight or any other sales order header fee at the county or state level. An easy to use matrix is provided in order to allow exceptions for an entire state or counties within a state.
During sales order entry, if you change the delivery address, the system will automatically re-validate the new city, state and postal code in order to retrieve the appropriate GEO code and charge the correct tax for that address. This function is invaluable for internet or consumer sales where the ship-to address will be different for each order.
Taxability is defined at the item and customer levels. Non-taxable items must never be charged sales tax, and a simple Y/N flag in the item file handles this. If a particular customer must never be charged tax, a similar Y/N flag may be set in the customer's file and a field for the customer's reseller certificate may be populated.
Both the customer and item must be taxable in order for the system to charge tax. However, during sale order maintenance, the user may change the tax flags at either the line or header level if there is an exception.
Canadian Addresses
Rate retrieval for Canadian addresses support GST and PST, where applicable. The system validates that the postal code is in the correct format and valid for the province entered.
Reporting
A standard sales tax report is provided with details and summaries at the city, county and state levels.
Unique locality codes are often defined within cities and vary widely across the country. These unique local codes are stored as part of the tax record and are readily available if you need to define custom reports or queries for your local taxing authorities.
Contact IBS for more information. »
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