Overview
In order to handle taxation challenges, Rootstocks supports Tax Locations and VAT functionality, as well as provides native integration with Avalara and Vertex (Automated Tax Software solutions).
Taxing Functionalities available on Sales Orders:
IMPORTANT When Processing Sales Orders, regardless of which taxation method is chosen, the Tax Location reference must be defined on every Ship-To Address, either on Customer Master or overrides on Sales Order Header and/or Lines. The percentage value of the Tax Location can be set to zero when Tax Locations are not to calculate Taxes, and/or a different method is in use.
Tax Locations:
- The tax location value and its percentage are carried from the default Ship-To Address on the Customer Master to the Sales Order Header Ship-To Address.
- Can be overridden at the Sales Order Header Ship-To Address and/or at the SO Line (Ship-To Settings Tab).
- When the Sales Order is fulfilled (Pack step of Sales Order Fulfillment), SO Shippers are created. They group those SO Lines packaged that have the same Shipping details, including the Tax Location.
- Only SO Shippers belonging to SO Lines with matching Tax Locations can be added to a SO Invoice.
- SO Invoice can be edited, and Tax Location updated.
- Sales Tax value is displayed on the Sales Order Invoice, and updated if a different Tax Location is chosen.
- Sales Tax can be calculated and then rounded line by line before being summed to the order/invoice total (versus summing the taxable amount of the lines and then applying the tax rate). This option is enabled on the SO Control > Invoice Processing Tab by selecting the Round Sales Tax Line by Line checkbox.
Avalara Integration
Taxing Functionalities available on Sales and Purchase Orders:
Value Added Tax (VAT) Overview
Tax Exemptions
It is possible to bypass Tax Calculation all together for those Customers marked as Tax Exempt (Resale), which can be overridden on SO Header > Charges tab for existing orders. When the Tax Exempt flag is checked on a Sales Order Header , then the value of Tax Exempt will be transferred to Sales Order Invoices generated off the Sales Order header.
Similarly, when Tax Exempt is checked on Sales Order Lines, then the flag Tax Exempt on related Sales Order Invoice Lines will also be checked.
Products can be marked as Tax Exempt, which can be overridden on Sales Order Lines > Additional > Charges tab.
Above options apply always, regardless of whether using Tax Locations, Avalara or VAT for Taxing purposes. Avalara Integration and VAT Functionality provide additional options to qualify Tax Exemption, see their related articles for details.
Sales Order Invoice Approval
Regardless of which taxing method is used, approving SO Invoice generates Account Distributions Details based on current settings, which are accordingly transferred to accounting as per Financial package in use.
SEE ALSO
Sales Orders Entry - Overview
Sales Orders - Setup
