Distributors may face a sales tax situation where certain items, for instance apparel, might be taxable within one tax jurisdiction but not in another.  To further complicate matters, tax for these items might be exempt at the State level, but not at the county or local level or vice versa. The Sales Tax Interface module has been enhanced to consider both the taxing jurisdiction as well as the product when calculating sales tax.

To minimize the file maintenance required to provide for these tax exceptions, modifications were made using the Product Code Set feature.  A Product Code Set can be defined to contain up to twelve product code entries.   

New fields have been added to the AR5 sales tax code file to allow the distributor to specify a product code set to exclude when calculating tax. This exclusion can be made at the state, county and local levels.

Sales Tax is calculated during Invoice Entry. For each invoice line that is generally taxable, the new fields within the AR5 sales tax record set for that line will be examined. If the invoice line happens to have a Product Code that is part of a Product Code Set present at the State, County or Local levels, sales tax will NOT be calculated for that invoice line for the applicable taxing jurisdiction(s). 

Of course, this logic only applies when the customer and/or the customer ship-to is taxable.  

Please note that these enhancements require the file structure that are a part of the Sales Tax Interface module.  It does not require that you subscribe to any Sales Tax Download service.  You do have the option of manually maintaining your sales tax code and rates.

For more information on this and other new enhancements, please contact DB Distributor Support Services.