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Evo-ERP and DBA Classic >> Accounting >> Sales Tax
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Message started by wildco on 02/09/05 at 13:07:24

Title: Sales Tax
Post by wildco on 02/09/05 at 13:07:24

Here in New York, our Sales Taxes are due in early March. I see that AR-K will give me the total tax by tax "code". However, since NY has 80 different jurisdictions, I need the amount of tax due by sales tax "group".

Is there a report in DBA to glean this information? Alternatively, what files/fields do I need to pull to write the report in crystal.

Any help anyone can provide would be great.

Thank you!

Title: Re: Sales Tax
Post by David Waldmann on 02/09/05 at 14:16:04

There's a nice building for sale in the next town over...
;)

More seriously, I don't know the answer to your question, but probably the best way would be to have set up your tax codes so that you could pick an appropriate range in the report, like NY-01, NY-02, NY-03, etc. However, it's too late to do that now, except possibly using global field replace.

Title: Re: Sales Tax
Post by lmk223a on 02/14/05 at 11:21:43

I'm not experienced in writing crystal reports, but I do know state sales tax returns. You may want to key in on the zip code and city name of the "ship to" address on sales invoices. As some larger cities like New York and I think Manhattan fall into more than one taxing jurisidiction, and some cities also locally may impose special taxes i.e. school taxes, regional transportation taxes, etc.

DBA has a monthly invoice listing report SO-0-H, which may be a good place to start, and then add the zip code and city info with a little help and guidance from IS TECH support people.

Also, most states have a web-site to help you with any questions you may have about jurisidictions and sales tax rates, as these items may change monthly.

Title: Re: Sales Tax
Post by Laura Oliver on 02/15/05 at 10:48:22

Maybe I am doing this wrong WILDCO, but if you are remitting to 80 jurisdcition woundnt you want the report by TAX CODE?

I write scores of checks each quarter to remit sales tax to 100s of jurisdictions. And DBA handles it great.

In Alabama we have 66 counties and thousands of cities. So we literally could have thousands of jurisdictions. Most all cities and counties collect their own tax, so each quarter I write scores of checks to little podunk cities, and scores more to the counties those little cities are in., and I remit monthly to the state. We basically have 3 tax status: RESALE, MFGrepair parts, and LABOR ONLY (we rarely sell for finished consumption). So for each jurisdiction there would be at least 3 status.

TAX CODES
4 tax codes for the state We have 66 counties and 1000s of cities
Ala-Labor 0.0%       Shelby-Labor .375% ---- Calera-labor 0%
Ala-Mfg 1.5%    Shelby-MFG .375% ---- Calera-MFG 1%
Ala-Resale 0.00 -    Shelby Resale 0.00 -----   Calera Resale 0% AlaReg 4.00% -      Bibb-labor .00% - - - -    Leeds-labor 0%
Bibb-MFG .40% -----      Leeds-MFG 1.5%
   . Etc.

Then I have at least one TAX GROUP for each customer. Using suffixes to show status & delivery (because in Alabama the jurisdiction where the sell is received gets the tax)

So if I get a new customer i.e. ACME,
I go and set up 6 TAX GROUPS. And choose the tax codes that fit
ACME-01 01=labor only will call includes Ala labor, Jeff County Labor
ACME-11 11=labor only delivered includes Ala labor, Shel Labor & Calera
ACME-02 02=Resale will call includes Ala Resale, Jeff County
ACME-22 22=Resale delivered includes Ala Resale, Shel Resale & Calera
ACME-03 03=MFG delivered includes Ala MFG, Shel MFG & Calera
ACME-33 33=Mfg will call includes Ala MFG, Jeff MFG

And when a Sales Order is entered you simply F2 and look for ACME and the appropriate suffix. If the Acmes invoice is for $149.00 and breaks down 99.00 material and 50.00 labor. Then I have the tax itemized on the bottom of the invoice Ala Mfg tax $1.49, Shelby County tax .37 and city of Calera Mfg tax .99

Then AR-K prints the report by TAX CODE. Caler-LAB thru Caler-RES showing only 1 invoice 109312 with Calera tax all quarter. But I still need to tell the city of Calera that I had $50.00 labor only sales, $00.00 RESALE sales, and $99.00MFG sales. AR-K will show So I write a 99cent check to the city of Calera (maybe my only sale in Calera that whole year) My AR-K report for Shelby county will have scores of invoices itemized inlcuding .37cents from invoice#109312 . The AR-K report for Alabama will be for hundreds of dollars, including 109312 with tax of $1.49.

I was recently audited and the audit folks were impressed with how I could specifically account for every sale, AND THE BEST PART.... this is super easy for your sales order entry person. The only snag is that w/c might change to delivered after the order is entered but that is fixable.

As far as using zipcodes this would be a problem in Alabama. We are in 35207, part of 35207 is in the city of Birmingham, and part is not. This is what DELL and other companies do, and we end up paying tax to the city of Birmingham, but we get no city services, as we are in unincorporated Jefferson county,

Title: Re: Sales Tax
Post by aricon on 02/15/05 at 11:21:35

Hmmm...apparently Laura has an inner "author" that is lurking around in her.... ;D

But seriously, well done Laura. Couldn't have set it up better myself.

Title: Re: Sales Tax
Post by Laura Oliver on 02/15/05 at 13:20:25

I was asked privately "isn't this a lot of work?"

The only time consuming part is setting up your codes. and I have added very few new ones in the last year.

And doesn't everyone have to set up codes for each jurisdiction (locality) anyway? I have heard that in California you only have to write 1 check a month and the state distributes it to the cities and counties, but Im sure you have to tell the state how to distribute it to those little cities and counties.

Tax Groups are created in a snap each time we add a new customer.

So no, its now really that much upfront work, but the reports are great.
I thought everybody did it this way?

Title: Re: Sales Tax
Post by David Waldmann on 02/16/05 at 05:30:21

No, not everyone does it that way. That's why I suggested Wildco move to Vermont. I have two tax codes (one for VT and one for "Shipped out of state) and no tax groups. Our sales tax form has the following lines:

Gross sales
Amount subject to use tax*
Add lines 1 & 2
Non-taxable sales
Balance subject to tax
Tax due (6% of line 5).

That's it. No additional documentation. Write the check and send it in. (it is, however, much more complicated than our payroll tax withheld form. That has only one line on it - "How much did you withhold?")

*items that we would have had to pay tax on, but didn't (like things purchased out of state that were shipped in, material taken from inventory that was purchased as tax-exempt but used for taxable purpose, etc).

Title: Re: Sales Tax
Post by wildco on 02/16/05 at 08:47:46

Thanks for the help everyone. I really appreciate it.

We got the sales tax half right... we set up tax groups for each jurisdiction and entered the appropriate tax group for the customers.

However, for our tax codes, we used one for each rate (i.e 8%, 7%, 7.5%, 8.25%, etc). The only sales tax related report I can find prints out by tax code, not tax group.

Therefore, since I think (hope) all my data is contained in the sales tax group info, I was thinking that crystal could just pull in that info. For 2005 we will change our structure to be as Laura indicated, but for 2004 I am stuck.

Thank you!

Title: Re: Sales Tax
Post by aricon on 02/16/05 at 12:45:50

Wildco,

I would suggest using MS Access to do the data extract rather than Crystal. The reason being that in Access (since it is a database system itself) you can grab the data and create the queries that provide just the data that you want formatted the way you want and such and then produce your report(s) from there. And if you have at least ONE license of Office Pro, then you have Access. Since you paid for it, why not use it? ;D

Title: Re: Sales Tax
Post by wildco on 02/17/05 at 06:22:49

Lorne: That would assume that I actually know how to use access ;D