US Sales Tax

[Chris Kelleher]

Hi all

MFGPRO 7.4F
Progress 7.3E

We are in the process of setting up a US db, in the UK, for our US offices
to connect to remotely. My query concerns setting up of US Sales Tax rates.

In California for exanple we need to set up;
CA Exempt - 0%
Alameda County - 8.25%
LA County - 8.25%

So I set these up using
State = CA
tax[1] = 0

State = CA
County = Alameda
Tax = 9.25%

etc

In New York;
New York Exempt - 0%
New York Std Rate - 8.25%

Am I correct in assuming these are set up as State = NY, tax[1] = 0%,
tax[2] = 8.25% ?

Apart from another dozen or so state/county taxes to set up, we wish all
other states to be set as EXEMPT - 0% tax. Do we need to set these all up
individually or is there some way to set this up as a global exception ?

Any help would be greatly appreciated.

Regards.


Richard Beveridge
Materials Manager
Solid State Logic Ltd
Tel; 01865 842300
Fax; 01865 841673
email; richardb@solid-state-logic.com

 

[Chris Kelleher]

We use standard QAD to do US Sales Tax for sales orders. There is a
customer taxable flag (yes/no) on the customer master, we use this to
flag them as exempt or not. I do not have a tax record setup for each
state as 0%. The tax(1),(2),(3) fields are used for segregation of
the different tax rates that must be separated on returns. For
example, state, city, county. This works for some states but not all.
(Texas can have 5 different breakouts.) QAD will then add the 3
rates together to get the total tax %. It will report these 3 tax
rates in different buckets. We have nexus in 10 states. I manually
setup new tax rates as required. Tax laws are not cut and dry. They
very greatly from state to state. In addition, the tax rates to
charge and the state to receive are dependant upon where you shipped
the goods from and to and who paid the freight company. I am self
taught on taxes, so I have not checked into using the tax exemption
codes.

QAD looks for a match of City, State, and County. If it finds an
exact match, it uses this records 3 rates. If it doesn't, it looks
for a match of State and County (blank city on 2.15.1.1). If it
doesn't find that, it will look for a match of State (blank county and
blank city on 2.15.1.1). If you don't setup a tax rate for a blank
state, you will not have to add a zero record for each state. If QAD
doesn't find one of the 3 matches above, it will use a tax rate of 0.

The following should be considered for US tax setup.
Use the customer master tax flag set to no for exempt customers. (All
taxable customers set to yes.)
Use the item tax flag set to no for any tax exempt items. (All
taxable parts set to yes.)
Look at each state's tax return.
Set tax rates in the 3 buckets according to state reporting
requirements.

This can easily get very confusing. I will be happy to explain in
further detail off line.

Debi Loope
PI Inc.
8.5h