Vertex Inc. provides
a third-party software solution called Vertex Sales Tax Q Series for the U.S.
and Canadian markets. This calculates sales taxes and use taxes. Taxes are calculated
based on the state, county, city, and postal (zip) codes entered in customer
order address fields. Vertex updates the taxation entities and percentages on a
monthly basis through a subscription service. This greatly simplifies the
process of correctly calculating taxes for sales.
Generic tax codes are used to retrieve the appropriate tax percentage(s) and
amount(s) from Vertex. Do not enter tax percentage and/or amount if you have
Vertex Q Series installed since those will be automatically determined by the
system.
Select the sales tax calculation method at the company level. This can be done
by selecting Vertex Sales Tax Q Series for the Sales Tax Calculation
Method field in the Company/Invoice/Tax Information sub
tab.
For tax calculation to work accurately with Vertex Q Series integration, it is
important to enter the correct address information. Use Application Base
Setup/Enterprise/Basic Data for states, cities, and counties, and then use the
List of Values whenever possible to select valid values. Values for all the U.S.
states are pre-installed in States. County and city can be selected from the
List of Values or entered manually. Postal (zip) codes must be entered manually.
Vertex tax calculation is used in IFS Applications/Customer Order. Valid address
fields are needed for correct Geocode retrieval. The Geocode is displayed in
the Jurisdiction Code field of Customer/Address/General Address Information sub tab. The first
two digits identify the state, the next three identify the specific county, and
the last four digits identify the city. The Within City Limit check box
is used to indicate whether the address is located in the city or not in order
to determine whether local tax(es) are to be included or not.