Sales tax automation integration helps manage tax codes when taxes are collected for several tax jurisdictions. DDISystem works with two companies to help calculate tax: Zip2Tax and Avalara.
- Zip2Tax is compatible with both Inform and eCommerce B2C. You can set up sales tax automation for just the web, or all of Inform, based on their authentication on the business server.
- Zip2Tax is not compatible with eCommerce Pro.
- These are calculated based on the zip code, or the zip + 4 code to generate a tax percent. This runs into issues in states that have multiple tax rates inside the same zip +4 tax code.
- The tax codes come in with the state prefix followed by a 3 digit number; for example NJ001, NJ002, CT001. Each new zip+4 will add a next sequential number to that states tax list. The tax rates will be filled out automatically under the tax code from File > Customer Tax.
Sales Tax Reporting is all done through Inform. The standard sales tax journal will have all of the tax reporting for Zip2Tax, broken down by Tax Code.
Zip2Tax needs to be set up on the authentication section of the business server.
Customer Tax Defaults
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.
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. The tax code is defaulted as a required field in the Customer Master which can be changed in the Index.File settings.
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
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
- 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.
There is an initial set up fee and a monthly fee. Send customer to Admin for more information.