SA Sales Use Tax Setup - General field descriptions

Fields are presented in alphabetical order within each section.

Tax Master

Description

Provide an expanded version of the state abbreviation. This description is displayed in the order header or Sales Order Inquiry.

Last Updated By

The initials of the last operator to update the record.

Origin/Destination
If your SA Company Setup-Tax Interface is System Rates, in Origin/Destination, specify whether taxes are assessed for this jurisdiction based on the origin of the sales order or the destination to which the goods will be shipped. Select one of these values:
  • Origin: The origin is determined by the ShipFrom warehouse location on the Sales Order Entry header. Select Origin to calculate taxes based on the origin of the sales order. Taxes are calculated by the system based on the rates set up for the jurisdiction assigned to the shipping warehouse record: Product Warehouse Description Setup. Exceptions are:
    • When the ShipFrom state and the ShipTo state are different, the use tax rate from SA Sales Use Tax Setup is used in the tax calculation.
    • When the ShipFrom state and the ShipTo state are different, the ShipTo state from SA Sales Use Tax Setup rates are used in the tax calculation.
    • When the ShipFrom state and the ShipTo state are the same, the sales tax rate from SA Sales Use Tax Setup is used in the tax calculation.
    • When the ShipFrom state and the ShipTo state are the same, and the state is an origin state, the taxes are calculated based on the SA Sales Use Tax Setup tax data for the ShipFrom location.
    • When the ShipFrom state and the ShipTo state are the same, and the state is a destination state, the taxes are calculated based on the SA Sales Use Tax Setup tax data for the ShipTo location.
  • Destination: The destination is the ship-to location indicated on the Sales Order Entry header. If you select Destination, taxes are calculated by the system based on the jurisdiction set up in Customer Setup or Customer ShipTo Setup.
  • Other: Select this value if you made custom modifications to the program.

The origin/destination setting must be set based on state taxing authorities. For example, the State of Colorado is a destination state. Any orders shipped from a location within the state are taxed with the rates set up for the destination’s jurisdiction, the ShipTo, whether that be intrastate or interstate. You must check each state taxing authority with which you do business to determine whether that state is an origin or destination state.

Tax ID #

The Tax ID number assigned to the company number for this jurisdiction.

Amounts

Excise Rate

If this jurisdiction or tax group has an applicable excise tax rate, specify the percentage. Excise taxes are usually applied as a product addon tax. Refrigerants are an example of a product that would be subject to excise taxes. You may want to set up those products subject to excise taxes with a tax group other than standard (1) in Product Warehouse Product Setup or Product Line Setup.

Flat Excise Rate

Use this field if this jurisdiction or tax group has an applicable excise tax rate, but the rate is not calculated using a percentage. Select one of these values in the Apply To field:

  • Line Select this value to apply the flat excise tax to the line item in Sales Order Entry.
  • Unit Select this value to prorate the excise tax amount to each unit on the line.
  • Taxation Weight: Select this value to apply the flat excise tax to the calculation based on taxation weight. This value used to calculate industry taxes, such as sweetened beverage tax or tobacco tax, when conditions are met. You must have enabled industry tax functionality in SA Company Setup, set up expanded tax groups in SA Table Code Value Setup, and set up a tax master record in SA Sales Use Tax Setup.
Maximum Taxable Amount

You can set a limit on the taxable amount of sales for use with tax calculations on each sales order or line item in Sales Order Entry. Specify the maximum taxable amount for this jurisdiction, if applicable. Select one of these values in the Compare To field:

  • Invoice: Select this value to compare the maximum tax amount specified in the Maximum Taxable Amount field to the total amount of taxes calculated for all lines on the invoice in Sales Order Entry. If the taxes calculated on the invoice amount exceed the maximum tax amount, the maximum tax amount is applied to the order by the system.
  • Line Amount: Select this value to compare the maximum tax amount to each line item’s taxes. The total taxes on an order may exceed the maximum tax amount, but the taxes on each individual line item’s taxes will be less than or equal to the maximum tax amount.
  • Line Unit: You can select this value to compare the maximum tax amount to each line item's unit. For example, two “Each” or two boxes equal two units. If your sales tax is 1% and the maximum tax you want to allow per unit is $80, you would specify $8,000 in the Maximum Taxable Amount field. Then, if a quantity of 5 units is ordered on the line, the tax amount for the line would be 1% [sales tax] X $8,000 [max taxable amount] = $80 X 5 [number of units] or $400.00 for the line.
Sales Rate

The sales tax percentage rate that applies to this jurisdiction. This is the rate used by the system to calculate sales taxes on intrastate orders entered in Sales Order Entry. The calculated sales tax for an order prints on an invoice in the total section along with the order total and addons. The amount that prints is a single, combined amount for the state and local taxes. In the Sales Analysis files, the tax amounts for an order and for individual line items are broken out by jurisdiction. The system updates General Ledger based on the account codes set up for each jurisdiction’s tax rate.

Transit Rate

The transit tax rate percentage if one applies to this jurisdiction. Transit taxes are assessed for areas encompassed by a regional transit district. The transit tax for all sales orders in this jurisdiction is calculated by the system.

Use Rate

If you are responsible for collecting use tax on out-of-state sales transactions, specify the use tax rate for this jurisdiction. Out-of-state sales transactions are generally not subject to sales tax. If goods are delivered out of state, the state of destination usually claims the tax, in the form of use tax. There are some states, however, where the origin of the shipment determines the taxing jurisdiction. You must verify the laws of any state in which you operate or make sales.

Sales Rate Totals

The Federal, State, and Total percentages are for information only. The system sums the percentage totals from each jurisdiction you create an SA Sales Use Tax Setup record for.