SA Company Setup - Taxes overview

System Administrator > Setup > Company

Use this page to set up default tax information for the company. Distribution SX.e offers multiple options for tax calculation. The options you choose depends on your geographical location, the type of taxes you are required to collect, and whether you are using a third-party tax solution.

The fields that are displayed depend on the location of your company, the Tax Method you select, and the Tax Interface you select. You must define your tax method and interface first, and then continue setting up and configuring how taxes are calculated for your business processes.

See How to determine your tax interface setups.

In the Tax Method field, select the tax method used by your company. 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. The options are:

  • 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 United States.
  • 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.

Based on your tax method, the appropriate tax setup or maintenance fields are displayed in these functions:

  • Customer Setup-Taxing
  • Vendor Setup-Taxing
  • Vendor Invoice Center Entry
  • Product Line Setup-Tax
  • Product Warehouse Description Setup-Taxing
  • Sales Order Entry-Review Taxes and Totals

In the Tax Interface field, select the interface you use to calculate sales and use taxes. Sovos, and AvaTax, and Vertex Cloud are third-party applications. The options are:

  • System Rates: Select this value 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.
  • Sovos - SUT: Select this value if you use Sovos Sales and Use Tax (SUT) Interface rate tables to determine your sales and use taxes.
  • Sovos GTD: Select this value if you use the Sovos GTD interface.
  • AvaTax: Select this value if you use the AvaTax interface.
  • Vertex: Select this value if you use the Vertex Cloud interface.

After specifying your tax method and tax interface, you must log out and log back in to activate these settings, which are needed for subsequent configurations. Use the other sections of SA Company Setup-Taxes to complete tax configuration. See related topics.