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)
Entity Use Code (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.