Tax Prompts by Taxing Method

Texada SRM offers three separate tax process options as activated from the Company Taxing Parameters.
The prompts to define the tax information according to each method, include:

• STANDARD TAX FEATURE
  In the Standard tax calculation, two Tax codes will apply on a contract, invoice, reservation, order entry, quotations, and work order programs to determine what government taxes that this customer should pay. These programs automatically calculate the taxes, with the opportunity to override the tax for special cases.
  Refer to Tax Maintenance Overview to review the regulations determining the tax selection using the Standard taxing method.

  The tax codes display in A/R Invoices, but do not influence the tax calculation or exemptions in this program. The tax codes display so that staff can see if the customer should have been charged tax, while they input the completed manual invoice. This may help to catch tax exemptions and allow staff to make corrections.

  The prompts displayed for use with the standard tax processing are:

  TAX 1

  A drop-down list is provided to view and select from valid tax codes.

  TAX 2

  A drop-down list is provided to view and select from valid tax codes.

  
  Customer - Standard Taxing Setup:
  When defining the two Standard taxes for the customer in Customer Information, consider the following:
  The Customer taxes default from the division values in Divisions.
  The ability to change the Tax Codes is controlled by operator permission setup in Security Role Permissions.
  The prompts in the Customer Codes window are:

  TAX 1

  Enter the code for the primary tax this customer, or select a code from the drop-down list.
  In Canada, Tax 1 is used for GST. In the U.S., Tax 1 is used for State Tax.

  Note: In Canada, enter the GST registration # in Divisions for each division.

  EXEMPT #

  To charge the customer the associated tax leave the Exempt# field blank.

  If the customer is exempt, type in the customer's exemption number, or the word EXEMPT in the corresponding Exempt# field, and select one of the following:

  
  EXEMPTION TYPE

  • Select Rental if this customer is exempt for this tax on Rentals only.
  • Select Sale if this customer is exempt for this tax on Sales only.
  • Select Both if this customer is exempt for this tax on BOTH Rentals and Sales.
  • Select Neither if this customer is not exempt for this tax.
  • Services and Damage Waiver will always be exempt from this tax if an Exempt # is recorded.

  Note: A flag in the Company Contract Parameters can be set to cause any Tax 1 GST exempt products to be identified with an asterisk on the printed invoice or contract.

  
  TAX 2

  Enter the code Tax 2 for this customer, or select a code from the drop-down list.
  In Canada, Tax 2 is usually PST. In the U.S., Tax 2 is usually the County, Municipal, or Local Tax.
  If there is no second tax, enter tax code NTX.

  EXEMPT #

  To charge the customer the associated tax leave the Exempt# field blank.

  If the customer is exempt, type in the customer's exemption number, or the word EXEMPT in the corresponding Exempt# field, and select one of the following:

  
  EXEMPTION TYPE

  • Select Rental if this customer is exempt for this tax on Rentals only.
  • Select Sale if this customer is exempt for this tax on Sales only.
  • Select Both if this customer is exempt for this tax on BOTH Rentals and Sales.
  • Select Neither if this customer is not exempt for this tax.
  • Services and Damage Waiver will always be exempt from this tax if an Exempt # is recorded.

  • ENHANCED TAXING
    The purpose of the Enhanced Tax feature is to allow more than two tax codes to be charged and tracked according to location, on products, services, and Damage Waivers, and to allow for tax exemptions on any or all of these charges.
    Enhanced Tax processing can be activated from the Company Taxing Parameters.
    Refer to Tax Maintenance Overview to review the regulations determining the tax selection using the Enhanced taxing method.

    The prompts displayed for use with the Enhanced tax processing are:

    GEOCODE

    An optional geographic location code can be assigned to the job site, customer, and/or division to determine taxes and tax exemptions to be charged as outlined in Tax Maintenance Overview.
    A window is provided to search for the appropriate GEOCode as setup in Tax Codes By GEOCode.

    
    TAX EXEMPTIONS

    A flag in the Company Taxing Parameters can be set to cause Site, Customer, and Division exemptions to all apply, else only the first exemption identified applies using the search sequence of Site, then by Customer and finally by Division.

    If the operator has role permission to Change Tax Codes any additional tax exemptions can be entered in the Taxes and Exemptions window.

    Note: Tax setup for exemptions can be maintained by product, class, customer, site, and service in the Tax Code Exemption Maintenance utility.

  • VERTEX TAX PROCESSING
    The third-party tax software called Vertex can be activated from the Company Taxing Parameters.
    All exemptions, and certificates information are controlled within Vertex software.

    TAX 1

    With Vertex software this tax code is always interpreted as 'Y' regardless of what is displayed.

    TAX 2

    With Vertex software the second tax code is always interpreted as 'NTX' because it not utilized in the Vertex calculations as the taxes are combined in the Tax 1 value.

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  Topic Keyword: TAXSEL