P4210 - figuring sales tax based on ship to location

[Djohnson]

Ah, the joys of sales tax on sales orders. We have new requirments for orders placed by companies that are not exempt from sales taxes. The tax is NOT based on the sold to company location, but rather the ship to location.
We do have the tax rates in P4008.

Issue: When entering an order, the sales order entry group must look up the location of the ship to, check the tables, enter the tax area and code on the order header based on the ship to location. This info defaults from the A/B based on the sold to and in many cases it must be removed or changed to match the ship to parameters. Needless to say they want to have this process automated.

In some cases the tax is state only and some state and county.

Any ideas?

 

[Sef]

Maybe I am stating the obvious here, or it may help you with your set up.
The Tax explanation code is read from the sold to address book whilst the tax area is read from the ship to address.
In other words, the sold to determines whether tax is payable, the ship to determines how much is payable.

 

[Djohnson]

We'll have to disagree on this one. Due to our various locations, manufacturing and/or office, throught the country we must charge sales tax based on the actual ship to location, not the sold to location. It varies by state and county, in some cases. I beleive it is termed - nexus.

 

[dgranger]

[ QUOTE ]
We'll have to disagree on this one. Due to our various locations, manufacturing and/or office, throught the country we must charge sales tax based on the actual ship to location, not the sold to location. It varies by state and county, in some cases. I beleive it is termed - nexus.

[/ QUOTE ]

You are correct. All tax is calculated and collected based on the ship to address of the product & whether or not YOU the seller have a NEXUS in that state. If you don't have a NEXUS (a location - office, plant, some guy working from home) then the buyer is responsible for paying the use tax on the purchased items. I'm new to E1 but have used many thrid party tax calculators over the years on different packages and on e-commerce solutions. Most of the packages will properly calculate the correct state & county tax. Some states like Penn. have different taxes bases on the category. (I know apparel items are taxed differently from other items.) I think E1 has a tax processing module but like I said I'm new to E1.

Sorry for the ramble,
Dan