Company Taxing Parameters

The tunable company wide Taxing Parameters can be accessed from the window in the Company Parameters.

Only Texada Support can change the Taxing Method, and access to the other tunable tax parameters is restricted by operator permission setup to change Tax Codes in Security Role Permissions.

Accounts Receivable

TAXING METHOD

There are three taxing options provided with Texada SRM.
Select one of:

• Enhanced - supports multiple tax codes simultaneously with related exemptions.
  The Enhanced Tax calculation processing provides the ability to charge and track multiple tax codes allowing for pertinent tax exemptions, on all rentals, sales, services, and Damage Waivers, on customer documents including Contracts, Invoices, Quotations, Reservations, Orders, Estimates, and Work Orders.
  

  Tax codes can be generated by GEOCode (a geographically identified area), by Ship To City, or by shipping Postal/Zip code address.
  Note: Enhanced taxing can be deployed without using GEOCodes, however once one GEOCode is setup, GEOCodes become mandatory on all documents to determine the tax calculation area.

  Exemptions can be established separately for rentals, sales, services, and Damage Waivers, at the level of Site, Customer, Division, Product Class, or Service, as controlled by the All Tax Exemptions Apply flag.
  This Tax Exemption data is reflected with the Tax details on the spreadsheet output of the Site Report and the Customer Discounts & Tax Status Report.

  Note: If Enhanced Taxing is activated then the Alternate Damage Waiver Calculation Type feature, and the option to Display Invoice Summary in the Rental Return, are turned off and disabled in the Company Contact Parameters.

• Standard - supports two basic tax codes, with exemptions.
  This is most useful in Canada, Australia and New Zealand where both taxes such as GST & PST can apply to the same purchase.

  With Standard taxing the Tax Activity Report can be used to track taxes collected and paid based on the 'Calculate Tax On' feature explained below.

  Note: If the tax codes in your province are changed, the Tax Change Utility can be used to update the data.
  e.g. GST to HST

  Changes made to either Standard Tax Code 1 or 2 on the header, details, services, or damage waiver of counter documents including Contracts, Quotes, Reservations, Work Orders, Sales Orders and Invoices, are written to the Audit Log and can be viewed under the "DOCUMENT TAX CODES" category.

• Vertex - services complicated tax laws based on multiple tax combinations according to your store location and the customer Shipping or Billing address.
  This is a third-party software application that can be integrated with Texada SRM.
  All tax rates, and remittance reporting are maintain in Vertex.

  When Vertex software is activated a list of certain other parameters that must be tuned to be compatible is triggered as outlined in Vertex Compatible Parameter Settings.

  Note: If Vertex Taxing is activated then the Alternate Damage Waiver Calculation Type feature, and the option to Display Invoice Summary in the Rental Return, are turned off and disabled in the Company Contact Parameters.

For more information on these three variations refer to Tax Maintenance Overview.

ALL TAX EXEMPTIONS APPLY

This parameter applies only if the Enhanced Tax processing has been activated.

Check this box to cause the Enhanced Tax processing to respect all tax exemptions that are flagged for customers, sites, and divisions.

Uncheck this box to cause the Enhanced Tax processing to check for tax exemptions first by Site, then by Customer, and then by Division, and to stop checking at the first encounter of any tax exempt flags.

Taxes Respected:

• Using this processing, the site on the document is first checked for any exempt flags, as setup in Tax Exemptions By Site. If any tax exemptions are identified the search for further exemptions ends, even if these exempted site tax codes do not apply to this document.
• If there are no site exemptions, then exemptions for the customer on the document apply as setup in Tax Exemptions By Customer.
• If there are no Site or customer exemption flags, divisional exemptions apply as determined by Tax Exemptions By Division.

Note: Tax Exemptions By Class and Tax Exemptions By Service exemptions always apply regardless of Site, Customer, or Division exemptions.

Refer to Tax Maintenance Overview for further Enhanced Tax exemption details and setup instructions.

VERTEX CONNECTION INFORMATION

This option is activated when Vertex is selected for the Tax Method to utilize an independent tax software package Vertex (version 'O') to calculate multiple tax combinations according to your store location and the customer Shipping or Billing invoice address.
The chargeable tax amount is then returned to Texada SRM to complete the billing and posting processing.

All tax rates, and remittance reporting are maintain in Vertex.
Because all maintenance of customer exemptions and Product Class exemptions are also controlled by Vertex tax processing, Texada SRM always interprets tax code 1 as Y and tax code 2 as NTX regardless of what is displayed for the customer, division or product class tax fields.

Contact Texada Support to activate this feature.
A window is provided to setup and maintain the web services access controls as outlined in Vertex Connection Information.

PROMPT FOR DOCUMENT TAXES

Some firms ship outside their province/state or local area and must collect the sales taxes according to the Ship To area.

Check this box if this is a common occurrence for your firm, to cause the tax window to open automatically and to prompt for the tax codes, when the Contracts, Invoices, Reservations, Quotes, Orders, Work Orders, and Leases, are entered.
Tax codes default according to the "Tax Default Rules on the Document" as outlined in Tax Maintenance Overview.

Uncheck this box to suppress the prompt for the tax codes in Contract, Invoice, Reservation, Quote, Order, Work Order and Lease entry.
The tax codes can still be accessed if needed during entry, in the Additional information window on the document.

Note: This processing is de-activated automatically when the Vertex Tax processing is activated.

PROMPT FOR TAXES WHEN SELLNG RENTAL

Check this box to trigger a tax code window on the Invoice for any sale of Rental equipment, allowing the operator to confirm or adjust tax codes for the sale of the Fixed Asset.

Uncheck this box to suppress this tax window, if the tax codes on the rental and on the sale of Rental equipment are the same.

Note: This processing is de-activated automatically when the Vertex Tax processing is activated.

PREVENT CHANGE TO DOCUMENT TAX TOTALS

This parameter controls whether system calculated tax totals can be over-ridden by tax code, on a document.

Check this box to make the calculated tax amounts 'display only' in the document Totals screen and to prevent these tax dollar totals from being changed in the Tax window at the end of the document, in Contracts, Invoices, and Quotes.

Uncheck this box to allow the calculated tax totals to be over-typed and changed in the window at the end of documents such as Contracts, Invoices, and Quotes.
If the tax values are changed and later the document is reviewed again, taxes would be re-calculated and so would need to be over-ridden again.

If your firm does permit changes to document Tax dollar totals, the ability to also change the Tax Codes themselves in the document tax window, is controlled by operator permission as defined by Document Field Access in the Security Role Permissions.

Note: This processing does not apply when the Vertex Tax processing is activated.

DEFAULT TAX FOR MISC. REPORTS AND INQUIRIES

A selected tax can be included in the list price or in the rental rate displayed/printed on the Product Price Labels, Rate/Price Inquiry, Rate Book, and Price List.

Leave this tax default field blank to prevent a default tax from being included in the reports or inquiries listed above.

Enter a default tax code or select one from the drop-down list.
This tax default will be displayed in the tax prompt in these reports/inquiries. It can be accepted or changed. The specified tax will then be included in the list price or in the rental rate displayed/printed in these inquiries and reports.

DEFAULT TAX REPORTING METHOD

In some countries, companies report tax only on invoices paid (CASH reporting).
This prompt controls the default setting to be used in the Tax Activity Report.

Select one of:

• Select A (Accrual) to default the report to include all taxes charged on the invoices.
• Select C (Cash) to default to report only on taxes on paid invoices.

General

CALCULATE TAX ON:

This option can be used to activate the tax calculation feature for Standard taxing that captures tax information for BAS (Business Activity Statement) reporting in the Tax Activity Report.
Select one of the following tax options

• Click AP Invoices to prompt for tax codes and calculate the tax information in A/P Invoices including Recurring A/P Invoices.
  With this feature, taxes are calculated on each line item on the AP invoice, and either added as additional tax transactions on top of the line item amount, or extracted from the line item amount if the tax has been included in the line detail total.
  

  The operator is prompted in the A/P Invoice, and the A/P Invoice by Purchase Order header whether tax is already included in the line totals or not, in order to determine which tax calculation applies, and a default value can be set in the Additional Information window of the Vendor Information that reflects the supplier's usual invoice format.

  The tax transactions post to G/L and A/P for the Division in the invoice header.
  Any further changes to the invoice prior to posting, will cause the tax feature to re-calculate and to make adjustments to the tax

  When this feature is activated the invoice details displayed in Vendor Account Inquiry include the tax calculation window.

• Click Journals/Checks to prompt for a tax code in Miscellaneous G/L Journals, Standard G/L Journals, and General Ledger Checks, so that on G/L Journals and G/L Checks after each detail has been entered and accepted, the tax window is triggered.
  The actual tax dollar amount is not calculated or posted.
  The tax code is used for reporting information only in Tax Activity Report.

  The Tax Code is only mandatory and a valid tax must be selected if the G/L Account entered for that transaction is defined as a posting account for any tax code in the Tax Codes table.

• Click AR Invoices to prompt for tax codes and calculate the tax information in A/R Invoices.
  With this feature, taxes are calculated on each line item on the AR invoice, and either added as additional tax transactions on top of the line item amount, or extracted from the line item amount if the tax has been included in the line detail total.
  The 'Save Posted A/R Details' must also be turned on in the Texada Parameters.

  The operator is prompted in the A/R Invoices header whether tax is already included in the line totals or not, in order to determine which tax calculation applies

  The tax transactions post to G/L and A/R for the Division in the invoice header.
  Any further changes to the invoice prior to posting, will cause the tax feature to re-calculate and to make adjustments to the tax.

  Note: Customer Invoices processed through the Daily Close are always included in the Tax Activity Report with the relevant taxes on Sales.

• Click Neither if your firm prefers to enter taxes on A/P invoices, AR invoices and journals manually and chooses not to utilize the tax calculation feature available in SRM.

• Click All to prompt for and capture the tax information in the AP, the AR and GL transactions as described above.

Note: The standard Taxes written-off and collected in the Bad Debts and Collections are always included in the Tax Activity Report after posting.

PROMPT TO UPDATE VENDOR TAXES IN A/P INVOICES

This prompt is only accessible if Calculate Tax On: parameter is activated for "AP Invoices" or "ALL", and can be used to control whether operators are allowed to update vendor taxes in Vendor Information from the information entered in an A/P Invoice.
A prompt in the Additional Information window in the Vendor Information controls whether vendors bill each invoice line including tax, or whether they bill each invoice line exclusive of tax.

Check this box to allow the operator to update the Vendor Information if taxes or the tax included defaults are changed in A/P invoice entry.

Uncheck this box to prevent the operator from having the option to update the vendor file.

TAX INCLUSIVE DEFAULT (EXCL. A/P)

The Tax Inclusive flag determines whether the tax amount is part of the transaction amount entered.
Set the preferred default for your company to display on the transaction entry programs including Miscellaneous G/L Journals and General Ledger Checks where the flag can be changed as required.

Finished?

Click OK to accept the settings and exit the Taxing Parameters window.

Note: Any changes made to these parameters will not be applied until the Company Parameters are accepted.