Manage Tax, Customer Order Charge/Manage Tax, RMA Charge
Explanation
Use this function to handle taxes in connection to customer order charge
and return material authorization charge. You can enter tax information directly
on the customer order charge and return material authorization charge or work
with multiple taxes. If you select tax structure you can work with multiple
taxes with different tax base amounts. If you work with multiple taxes without
selecting tax structure you can add, modify or remove tax lines. Default tax
information can also be retrieved
Prerequisites
- If the tax is to be applied to customer order charge line, customer
order header with at least one charge line must exist on the
Customer Order page.
- If the tax is to be applied to return material authorization charge
line, return material authorization header with at least one credit charge
line must have been entered on the Return Material
Authorization page.
- The tax codes to be applied must have been defined for the company used.
This is done on the Tax Codes page.
- To calculate single tax or multiple taxes with the common tax base amount
- To receive default tax values from the sales charge type, the tax
code must be connected to the charge. This is done on the
Sales Charge Type page.
- To receive default tax values from the taxable customer address,
the tax liability must be of tax liability type Taxable and one
or more tax codes must be connected to the customer's delivery address
on the Customer/Address/Delivery Tax Information
tab.
- To receive default tax values from the exempt customer address,
the tax liability must be of tax liability type Exempt and one
or more tax codes must be connected to the customer's delivery address
on the Customer/Address/Delivery Tax Information
tab.
- To calculate multiple taxes with different tax base amounts
- The tax calculation structure to be applied must have been defined
for the company used. This is done on the Tax
Calculation Structure page.
- To receive default tax values from the taxable customer address,
the tax liability must be of tax liability type Taxable and the
tax calculation structure must be connected to the customer's delivery
address on the Customer/Address/Delivery Tax
Information tab.
System Effects
- Tax information is entered and connected to a specific charge line.
If single tax is calculated, the Multiple Tax Lines option is disabled
and single tax code is displayed in the Tax Code column on the line.
If multiple taxes are calculated, the Multiple Tax Lines option is
enableded on the line. If multiple taxes with different tax bases are calculated,
the tax calculation structure is displayed in the Tax Calculation Structure
column on the line.
- If the Transaction Level option is enabled on the
Company/Tax Control/General tab under
Customer Tax Code Validations, it is mandatory to enter
a tax code or a tax calculation structure on charge line.
- If the Use Price Incl Tax option is disabled on the
Customer Order/Order Details tab or the
Return Material Authorization/Order Details
tab, net amount from charge line is used as tax base.
- If the Use Price Incl Tax option is enabled on the
Customer Order/Order Details tab or the
Return Material Authorization/Order Details
tab, gross amount from the charge line is used as tax base.
- If multiple taxes with different tax bases are calculated, the tax base
for each tax line is derived from the tax calculation structure definition
and it is displayed in the Tax Base Amount/Curr column.
- Tax amount is calculated for each tax line.
- Tax amount is calculated for charge line.
- If the Use Price Incl Tax option is disabled on the
on the Customer Order/Order Details tab or
the Return Material Authorization/Order Details
tab, gross amount on charge line is calculated as a sum of net amount and
tax amount.
- If the Use Price Incl Tax option is enabled on the
Customer Order/Order Details tab or the
Return Material Authorization/Order Details
tab, net amount on charge line is calculated as a difference between gross
amount and tax amount.
- If multiple taxes with different tax bases are calculated, gross amount
on charge line is calculated as a sum of net amount and tax amount.
Integration to Tax Calculation software
If you are using Vertex software to automatically calculate taxes on sales
quotations, customer orders, customer order invoices and return material authorizations
the overall concept of the integration is; when a tax call is initiated in IFS
Cloud a call is made to the Vertex Sales Tax software to fetch the correct tax
rates based on the information on the sales quotation, customer order, customer
order invoice or the return material authorization. Three main parameters are
used to identify the correct tax rates. These parameters are:
- Ship From Address (the delivery address associated with the site where
the customer order is placed)
- Ship To Address (the address associated with the customer order line)
- Order Acceptance Address (the default document address associated with
the company where the customer order is placed)
In addition to these main parameters, information such as sales part number,
price, quantity and customer group are also passed to the Vertex Sales Tax software
to ensure the correct tax rates are fetched. Based on the information sent to
Vertex, Vertex looks up the correct tax rates and tax amounts and return the
information to IFS Cloud. The information is then uploaded into the tax lines
dialog. The tax lines dialog is read only when using Vertex, meaning that it
is not possible to manually add tax codes.
If you are using Avalara Tax software to automatically calculate taxes on
sales quotations, customer orders, customer order invoices and return material
authorizations the overall concept of the integration is; when a tax call is
initiated in IFS Cloud a call is made to the Avalara Tax software to fetch the
correct tax rates based on the information on the sales quotation, customer
order, customer order invoice or the return material authorization. Four main
parameters are used to identify the correct tax rates. These parameters are:
- Ship From Address (the delivery address associated with the site where
the customer order is placed)
- Ship To Address (the address associated with the customer order line)
Customer Tax Usage Type (this is to categorize the customer. Ex: a charity
organization, government organization...etc.)
- Avalara Tax Code (this is to categorize the part. Ex: food, pharmaceutical...etc.)
In addition to these main parameters, information such as sales part number,
price and quantity are also passed to the Avalara Tax software to ensure the
correct tax rates are fetched. Based on the information sent to Avalara, Avalara
looks up the correct tax rates and tax amounts and return the information to
IFS Cloud. The information is then uploaded into the tax lines dialog. The tax
lines dialog is read only when using Avalara, meaning that it is not possible
to manually add tax codes.
When fetching the correct tax rates from Vertex/Avalara Tax software, the
following scenarios are considered.
- The Last Actual Ship date is passed to the tax date
in the tax request message to fetch the correct tax rates, when a
customer order line connected return material authorization credit
charge line is manually updated, and the connected customer
order line is in Delivered status.
- The system date is passed to the tax date in the tax request message
to fetch the correct tax rates when a return material authorization
credit charge line is manually added or updated and is not connected to
a customer order.
- The customer order debit invoice Printed date is
passed to the tax date in the tax request message to fetch the correct
tax rates, when a return material authorization credit charge line is
manually updated and is connected to a customer order which is
in Invoiced/Closed status and debit invoice in
Posted/Auth status.
- The latest customer order debit invoice Printed
date is passed to the tax date in the tax request message to fetch the
correct tax rates, when a return material authorization credit charge
line is manually updated and is connected to a customer order
line in Delivered/Partially Delivered status where
multiple debit invoices exist in Posted/Auth status.