Manage ever changing tax rates and rules across multiple jurisdictions using Inform ERP Sales Tax Automation. This productivity booster includes a sales tax calculation engine that integrates directly with Inform ERP and Inform eCommerce Pro. In addition to tax calculation, TaxJar provides both tax reporting and Nexus management. With it, you can
- Seamlessly integrate Inform’s “roof-top level” sales tax calculation using the geographic location of the shipping address.
- Get continually updated tax rates and rules for more than 11,000 county, city, & district US jurisdictions
- Identify jurisdiction accurately based on the “roof-top” level geographic location of the shipping address. A geographic lookup will
narrow the results down to the exact shipping location.
- Identify the taxability of freight charges in states where freight is taxable
- Use TaxJar Reports and TaxJar AutoFile–robust sales tax reporting and filing systems.
Note: With Inform integration of TaxJar, you will not be able to use TaxJar autofile because this integration does not support reporting on the line item level.
Note: With Inform integration of TaxJar, line item level reporting is not supported. In Inform, products such as Repair Labor use special product codes that often have different taxable rates or status that are applied at invoicing. The line item limitation impacts TaxJar reporting by incorrectly categorizing the tax charged for these special items as "General Merchandise." This issue does not extend to jurisdictional numbers or total tax owed reporting: these values are correct. If audited, you can show that the transactions in TaxJar tie back to the data in Inform via the invoice code/transaction IDs in both systems. You can use Advanced Report Writer to extract the data necessary to validate the values.
How it works
- Uses the full Ship To address to apply the correct tax
- Creates new tax codes during sales order entry, if new states are added
- Determines if jurisdiction should tax freight based on freight settings
B2C Retail eCommerce Pro
- Built into eCommerce Pro
- Uses the geographic location of the ship to address
- Creates new tax codes as required during checkout
When you purchase Inform's Sales Tax Automation booster, our Customer Care will work with you to make sure that Inform is configured to apply the tax automation most effectively. Keep in mind the following tips below on setting up customer tax defaults and pickup orders:
Customer Tax Defaults
- Taxable Status: If a specific customer is tax exempt, you must select this option at the customer level. Open the customer on File > Customer > Master. Click the Credit tab on the Setup page, and then type the Tax Exempt Number. The Taxable check box should remain cleared. See Configure tax rate and credit options.
Non taxable customers must have a reason code assigned for why they are tax exempt, or will come back with an error. These reason codes are set up as Customer User Defined Fields (UDFs). By default all customers will be hardcoded to “Wholesale” but all customers can be changed under File > Customer Master under the Custom Fields tab. This will be set up by the Customer Care team in advance to any implementation/training of TaxJar.
- Tax Code: Since tax information is pulled over using Sales Tax Automation, you can leave the Tax Code field blank for both Customers and Ship To's. You can override the sales tax automation information at the sales order level. See Disable sales tax automation
If you have pickup orders, make sure the the sale tax automation booster has the information it needs to apply taxes properly.
- Create local tax codes
- To ensure that the correct tax is applied to pick up orders, create "dummy" sales orders with a a Manual Ship To using the local zip code of the branch.
- Repeat this step for all branches, so a tax code is created for each.
- Ship Via Assignment
- Set the Branch Tax on the Pick Up / Will Call shipping methods
- Ship Via must be marked as Pick Up
- Tax service won't overwrite a Pick Up shipping method
Disable sales tax automation
You can disable sales tax automation on the tax code or order level.
The sales tax automation will also be overridden if you have a tax code assigned at any of the following levels of an order: customer master, ship to master, ship via, and branch level.
On a tax code
You may want to disable sales tax automation on the tax code level. For example, the government may offer discounted tax rates under certain qualifications, such as Lakewood NJ has UEZ which is less than the NJ State Tax.
- Open the Tax Code in File > Customer > Tax, and then select the Suppress Service Update check box. See Create tax codes.
On a sales order
If you want to manually apply tax rates to an order rather than pulling them from Sales Tax Automation, you can disable the automation.
- On your Sales Order, select the Ovrd check box beside the Tax Code on the Header tab.
eCommerce Setup of Taxable States
By default, all states are taxable. To set up taxable state status individually for eCommerce, see Add or edit states that charge tax
Troubleshooting Invalid Tax Rates
Errors: Whenever TaxJar cannot find a tax rate, an internal message will be sent saying TaxJar Order Errors. The user that will get this notification can be changed by DDI Customer Care. The error message will explain why it was not able to calculate a tax rate. The tax code in the sales order will also say TJERR to show TaxJar found an error in the data. Make sure you communicate the desired contact to DDI Customer Care.