P07 STax Q Basics Imp

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Vertex Sales Tax Q Series Basic Implementation Considerations: 

Vertex Sales Tax Q Series Basic Implementation Considerations Session P07 Wednesday, November 2, 2005 8:00 am – 9:50 am

Introduction: 

Introduction Ruby Marrow Sr. Instructor, Vertex Inc. Sam Guevara Consultant, KPMG

Course Objectives: 

Course Objectives Identify Vertex Sales Tax Q Series system components Explain GeoCode assignment Understand implementation of tax exceptions Understand calculation functionality Review standard reporting functionality Identify implementation considerations

Overview: 

Overview

System Components: 

System Components Vertex Sales Tax Q Series Databases Application Programmer’s Interface TDM Program Reference Materials

System Workflow : 

Invoices P.O.’s Reports Host system files Host system programs System Workflow

Databases: 

Databases

Three-E Rule: 

Three-E Rule The system will tax: Everyone Everything Everywhere … at the standard rates and rules in the Rate database.

TDM Program: 

TDM Program

GeoCode Assignments: 

GeoCode Assignments

Databases: 

Databases

Application Programmer’s Interfaces: 

Application Programmer’s Interfaces GeoCoder API Used to assign GeoCodes to invoice address information Sales and Use Tax API Used to calculate taxes and to return information to your host system

Methods of Using GeoCodes: 

Methods of Using GeoCodes Stored in host system: Manual assignment Electronic assignment Accessed during invoice processing: Electronic retrieval

U. S. GeoCodes: 

U. S. GeoCodes State PA County Chester City Berwyn

Canadian GeoCodes: 

Canadian GeoCodes 70 -- 019 -- 0820 Country CN Province Quebec City Montreal

Importance of GeoCodes: 

Importance of GeoCodes

Taxing Locations: 

Taxing Locations

Invoice Address Defaults: 

Invoice Address Defaults SF OA SF SF ST ST ST ST and SF Only Passed ST Only Passed Vertex Values System Defaults

Databases: 

Databases

Application Programmer’s Interfaces: 

Application Programmer’s Interfaces GeoCoder API Used to assign GeoCodes to invoice address information Sales and Use Tax API Used to calculate taxes and to return information to your host system

Taxes Calculated: 

Taxes Calculated Vertex Sales Tax Q Series calculates state and local taxes based on the following rates Sales tax rates Seller’s use tax rates Rental/lease tax rates Canadian service tax rates

Interstate Transactions: 

Interstate Transactions Generally taxed at the destination Seller’s use tax rates Jackson, MS 25-049-0340 Birmingham, AL 01-073-0150

Intrastate Transactions: 

Intrastate Transactions Taxed at origin or destination (state statute) Sales tax rates Erie, PA 39-049-1240 Philadelphia, PA 39-101-3000

Intrastate – Origin State: 

Intrastate – Origin State Pennsylvania: Origin State (Order Acceptance) 6% State Tax Ship-to Scranton, PA (39-069-3390) Total Sales Tax Rate = 7%

Intrastate – Origin State: 

Intrastate – Origin State Pennsylvania: Origin State (Order Acceptance) 6% State Tax Total Sales Tax Rate = 6% Ship-to Scranton, PA (39-069-3390)

Databases: 

Databases

Audit Trail: 

Audit Trail The Register Database contains records for all the invoice transactions processed Audit trail and management reports TAX2000 (import file)

Reference Materials: 

Reference Materials Administrator’s Guide Programmer’s Guide Reference Manual User’s Guide TDM Taxability Reference Vertex Sales Tax Rate Locator

System Workflow : 

Invoices P.O.’s Reports Host system files Host system programs System Workflow

Identify Key Implementation Needs: 

Identify Key Implementation Needs Review the taxability of your products, services, customers, and purchases List state and local locations where you are required to collect or accrue sales and use tax Analyze the findings of past state and local tax audits

Key Implementation Factors: 

Key Implementation Factors Identify members of the implementation team and determine roles and responsibilities Financial Resources (CFO, Tax Manager) Technical Resources (IT Manager, Systems Analyst Outside Consultants (Tax Advisors, ERP Consultants Purchasing, AP, AR, Inventory Transfer

Key Implementation Factors: 

Key Implementation Factors Determine if outside consulting from a service provider is needed because of Insufficient personnel Insufficient tax expertise Insufficient technical expertise

Key Implementation Factors: 

Key Implementation Factors Plan, install, and set up Create an implementation plan Install and configure Vertex software Configure host financial application to use Vertex software Check data integrity

Key Implementation Factors: 

Key Implementation Factors Prepare for production Test Vertex software Create data backup plans and processes Create procedures for implementing monthly updates Educate affected departments on procedures

Conclusion: 

Conclusion

Host and Vertex Sales Tax Q Series Data Elements: 

Host and Vertex Sales Tax Q Series Data Elements Company Code Division Code (free data element) Product Code Customer Code GeoCodes (ST, SF, OA) Line Item (quantity for calculation)

Thank You!: 

Thank You! Please complete the session evaluation Leave your questions with a proctor Let us know how we can serve you better