Sovos and VeraZip

VeraZip is an optional third-party application you can purchase separately to use with Sovos and the Distribution SX.e tax interface. Contact your Sovos representative for more information.

Note: Infor strongly discourages the use of SA Exemption Setup functionality in combination with Sovos. Use of SA Exemption Setup may interfere with how Sovos works; the timing and validation. You should make customers and products taxable, then let Sovos determine any reason why either would not be taxed. Between the Sovos product codes and the tax exemption certificate functionality Sovos provides, you can set up everything necessary to have Sovos correctly determine the taxability. This is especially true with how addons are handled. You can set the addon taxability to Exemption, but there is no way to specify the Tax Exempt Type value in SA Exemption Setup against the addon. Therefore, before to using them simultaneously, we recommend you engage Infor Consulting Services (ICS) to help plan your implementation.

When used with Sovos, VeraZip verifies postal codes based on the record's city and state information. A two-digit value is displayed in the Geo Code field of any Distribution SX.e function when integrated with Sovos and VeraZip. Geo codes are geographical location codes used by Sovos and VeraZip to distinguish between cities that share the same postal code, and those town-postal code combinations that are in more than one county.

Geo codes are stored in Customer Setup, Customer ShipTo Setup, Sales Salesrep Setup, and Product Warehouse Description Setup. They are also verified during Sales Order Entry when you enter a sales order. You can change the Geo code.

When you perform a lookup in the Geo Code field, the city, state, and zip code information is passed from the system to VeraZip. The information is verified by VeraZip in these combinations: state and ZIP code; city and state; and city, state, and ZIP code. You can then select the Geo code that most likely denotes the taxing jurisdiction. After you select the Geo code, the city, state, zip code and Geo code information is displayed in the Distribution SX.e function.

If you do not specify a Geo Code, VeraZip automatically loads the most likely code based on population density in that location.

The Geo code is critical for correct collection and reporting of taxes. When troubleshooting, if the incorrect amount of tax is being calculated on customer’s sales orders, check their Geo code first.