Defining your tax method and interface

Use SA Company Setup to define these settings to ensure the appropriate address and tax settings fields are displayed. The Taxes view is used by the system to determine what taxing logic or interface is used when calculating taxes on sales orders and vendor invoices. These instructions assume you have set up your company, so not all settings are covered here. Your exact steps may vary. You must sign out and sign back in to activate these settings, which are needed for subsequent configurations.

  1. Select System Administrator > Setup > Company.
  2. Select the company you want to modify. You can only modify the company you are currently logged into.
  3. Click Edit.
  4. In Taxes view, in the Tax Settings section, specify the Tax Method. The Tax Method option is used by the system to determine what taxing logic is used when calculating taxes on sales orders and vendor invoices. Select the method based on the company location.
    • Sales Use Tax (SUT): Select this option if your company is based in the United States and must collect and report sales and use taxes based on sales made in state, county, city, and other jurisdictions in the U.S. Select this option also if you are implementing industry tax functionality.
    • Goods and Services Tax (GST): Select this option if your company is based in Canada and must collect and report goods and services (GST) taxes for jurisdictions in Canada.
    • Value Added Tax (VAT): Select this option if your company is based in the United Kingdom or Mexico and must collect and report Value Added Tax for jurisdictions within those countries.
  5. In Tax Interface, select an option:
    • System Rates: Select this option if you do not use a third-party taxing software; rather, you update and use the tax rates in the System Administrator tax tables in the system. Select this option also if you are implementing industry tax functionality.
    • Sovos - SUT: Select this option if you use Sovos Sales and Use Tax (SUT) Interface rate tables to determine your sales and use taxes.
    • Sovos GTD: Select this option if you use the Sovos GTD interface.
    • AvaTax: Select this option if you use the AvaTax interface.
    • Vertex: Select this option if you use the Vertex Cloud interface.
  6. If you intend to integrate with Sovos GTD, select the Tax Register option to indicate you are integrating with a third-party tax compliance application and intend to store data in the audit file.
  7. In Tax Analysis, select either Cash or Accrual, depending on when your system records the tax amounts.
    Note: Vertex Cloud does not support cash basis. If you intend to integrate with AvaTax, for cash basis, you must first contact your AvaTax representative.
  8. Click Save.
  9. Sign out and sign back into Distribution SX.e.
    Caution: 
    You must log out and log back in to activate these settings, which are needed for subsequent configurations.