Viewing Sales/Use Tax Details Concept

1. Viewing Sales/Use Tax DetailsConcept

2. Viewing Sales/Use Tax Details

3. Viewing Sales/Use Tax Details Step 1 Begin by navigating to the Purchase Order page. Click thePurchasingmenu.

4. Viewing Sales/Use Tax Details Step 2 Click thePurchase Ordersmenu.

5. Viewing Sales/Use Tax Details Step 3 Click theAdd/Update POsmenu.

6. Viewing Sales/Use Tax Details Step 4 Click theFind an Existing Valuetab.

7. Viewing Sales/Use Tax Details Step 5 Click in thePO IDfield.

8. Viewing Sales/Use Tax Details Step 6 Enter the desired information into thePO IDfield. Enter"POSBI-05".

9. Viewing Sales/Use Tax Details Step 7 Click theSearchbutton.

10. Viewing Sales/Use Tax Details Step 8 Use the Purchase Order page to enter or change PO information online.

11. Viewing Sales/Use Tax Details Step 9 Click thehorizontalscrollbar.

12. Viewing Sales/Use Tax Details Step 10 Click theSchedulebutton.

13. Viewing Sales/Use Tax Details Step 11 Use the Schedules page to specify ship to, quantities, due dates, comments, miscellaneous charges, sales/use tax, price adjustments, and multiple distributions per schedule within a PO line.

14. Viewing Sales/Use Tax Details Step 12 Click theSched Sales/Use Taxbutton.

15. Viewing Sales/Use Tax Details Step 13 Use the Sales/Use Tax Information for Schedule 1 page to enter the SUT information for the schedule.

16. Viewing Sales/Use Tax Details Step 14 The Tax Destination field displays the location code on which the SUT calculation for the schedule should be based. This is also known as the tax basis.

17. Viewing Sales/Use Tax Details Step 15 Use the Tax Applicability list to select the correct sales and use tax applicability rules from these values: • Item is Exempt: Select if the item is exempt from sales and use tax. • Purchaser Is Exonerated: Select if you, as the purchaser, do not have to pay sales or use tax. Tax is not calculated on the purchase order and accounts payable does not pay taxes. • Sales Tax Appl: Select to calculate and apply sales tax on the purchase order. • Sales Tax Appl, Direct Pay: Select if you do not want sales tax calculated on the purchase order. The invoice is not created with sales tax, but a line is written to the general ledger for the amount that you must pay the state directly. • Use Tax Appl: Select to calculate and apply use tax on the purchase order.

18. Viewing Sales/Use Tax Details Step 16 In most cases, sales tax is computed as a use tax based on the tax code applicable to the ship to or usage destination. However, how merchandise is ultimately used may also result in a different tax rate within the same ship to or usage destination. Enter a value in the Ultimate Use Code field to override the default tax rate for a location.

19. Viewing Sales/Use Tax Details Step 17 The Exception Type and SUT Excptn Cert fields appear by default from the ship to location for the SUT destination. SUT exception type values include Direct Pay, Exempt/Exonerated, and None.

20. Viewing Sales/Use Tax Details Step 18 The Tax Code field displays the tax code for the schedule. A tax code consists of a group of tax authorities. For example, if a certain locality has a city tax, trade use tax, county tax, and state tax, you can create four tax authorities and group them into a single tax code. This is used when the PeopleSoft tax tables are used to calculate sales and use tax.

21. Viewing Sales/Use Tax Details Step 19 Click the Calculate SUT button to run the TaxCalc API process, which calculates the sales and use tax. Use this option when Vertex or Taxware is installed.

22. Viewing Sales/Use Tax Details Step 20 The Include VAT setting is especially relevant if each line has separate tax code values for SUT and VAT, in which case both might be on a given line resulting in a tax-on-tax situation. In these instances, the system calculates VAT, then SUT, either on the net-extended amount for the line or on the sum of the net-extended amount and VAT amount. If this option is selected, the VAT amount needs to be taxed and the system adds the VAT amount to the net-extended amount before calculating SUT.

23. Viewing Sales/Use Tax Details Step 21 If Include Freight is selected, the freight amount needs to be taxed and the system adds the freight amount to the net-extended amount before calculating SUT.

24. Viewing Sales/Use Tax Details Step 22 If Include Misc Charges is selected, the miscellaneous charges need to be taxed and the system adds the miscellaneous charges to the net-extended amount before calculating SUT.

25. Viewing Sales/Use Tax Details Step 23 The following exceptions apply to the Schedule Sales/Use Tax Information page: If the SUT exception type is exempt or exonerated for the ship to location, the system does not call the TaxCalc API to calculate the exception.

26. Viewing Sales/Use Tax Details Step 24 If the SUT exception type is direct pay, the system updates the defaults on the SUT Excptn Cert (SUT exception certificate) with the direct pay permit from the ship to location and calls the TaxCAl API to update calculations.

27. Viewing Sales/Use Tax Details Step 25 If the SUT applicability is sales and the exception type is none, then send the ship to, ship from, POA, POA address, and geocodes, along with the extended amounts, to the TaxCalc API. Sales tax amounts are updated accordingly and distributed to purchase order lines.

28. Viewing Sales/Use Tax Details Step 26 If the SUT applicability is use and the exception type is none, then send the ship to, ship from, POA, POA address, and geocodes, along with the extended amounts, to the TaxCalc API. Set the transaction type to 1 - sales. Sales tax amounts are updated accordingly and distributed to purchase order lines.

29. Viewing Sales/Use Tax Details Step 27 Click theOKbutton.

30. Viewing Sales/Use Tax Details Step 28 Click thehorizontalscrollbar.

31. Viewing Sales/Use Tax Details Step 29 You can also view sales and use tax information from the Distributions for Schedule page. Click theDistributions/ChartFieldsbutton.

32. Viewing Sales/Use Tax Details Step 30 Click theDetails/Taxtab.

33. Viewing Sales/Use Tax Details Step 31 Click theSales/Use Taxbutton.

34. Viewing Sales/Use Tax Details Step 32 Use the Sales/Use Tax Details for Distribution 1 page to view additional information about freight and miscellaneous amounts as well as the calculated tax amounts. The information on this page is view-only.

35. Viewing Sales/Use Tax Details Step 33 Click theReturnbutton.

36. Viewing Sales/Use Tax Details Step 34 Click theOKbutton.

37. Viewing Sales/Use Tax Details Step 35 You have successfully viewed sales and use tax information for a distribution line. End of Procedure.