Configuring your company for tax integration

Use SA Company Setup to further configure your company for tax integration. These instructions assume you have set up your company, so not all settings are covered here. Your exact steps may vary. You must have already defined your tax method and tax interface.
Note: When using an external taxing application, you must consult with the provider to determine the appropriate company settings, including origin and acceptance addresses, for your company, location, and situation. Your representative will recommend the exact settings for these fields.

The Taxes view contains sections specific to the tax interface you have integrated with.

  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 the Required view, ensure the State field reflects the two-character code as defined in the ISO-3166-2 standards. Save the record.
  5. If you use Sovos GTD, in Geo Code, specify your company's Geo Code. If you use Vertex Cloud, specify the Tax Area ID provided by Vertex.
    See the Infor Distribution SX.e Integration Guide for Vertex Cloud.
  6. In the Currency section, ensure your company’s domestic currency is specified in the Currency Symbol, Currency Code, and the three-character Standard Code fields, even if your company has a United States address. The Standard Code must reflect the three-character code as defined in the ISO 4217 standards. Save the record.
  7. Select the Taxes view. Skip steps not related to your Tax Interface.
  8. If you are integrated with AvaTax:
    1. Specify the Point of Origin. Optionally, select Ship To to indicate the customer. with
    2. Specify the Point of Acceptance. Optionally, select Ship From to indicate you, the distributor.
    3. Optionally, if you are using AvaTax in the Accounts Payable functions, select Apply AP Taxing. This option allows the Vendor Invoice Center Entry function to properly collect, record, and post tax liabilities and credits in Vendor Invoice Center Entry and General Ledger.
    4. To enable the Address Validation pop-up and Address Override feature, select the Address Validation option.
    5. Optionally, you can define multiple company codes at the warehouse level. For example, most of your company may be registered to collect tax in multiple states, but a particular warehouse location is a separate tax entity with the IRS and state tax board. To enable this feature, select the Tax Organization By Warehouse option.
    See the Infor Distribution SX.e Integration Guide for AvaTax.
  9. If you are integrated with Sovos GTD:
    1. Ensure the STEP Interface is set to Don't Use. Do not use the STEP (Sales Tax Exemption Processing) system to process and maintain sales and use tax exemption certificates in to indicate the customer. Sovos GTD.
    2. In LOA Tax Type and LOR Tax Type, indicate the location of order acceptance value and location of order origin value you want to use to default to Sovos GTD.
    3. Clear the Geo InterfaceSovos GTD.
    4. Optionally, if you are using Sovos GTD option. Geo code functionality is included in the Accounts Payable functions, select Apply AP Taxing. This option allows the Vendor Invoice Center Entry function to properly collect, record, and post tax liabilities and credits in Vendor Invoice Center Entry and General Ledger.
  10. If you are integrated with Vertex Cloud:
    1. Specify the Administrative Origin. Optionally, select Ship To to indicate the customer.
    2. Specify the Administrative Destination. Optionally, select Ship From to indicate you, the distributor.
    3. Optionally, if you are using Vertex Cloud in the Accounts Payable functions, select Apply AP Taxing. This option allows the Vendor Invoice Center Entry function to properly collect, record, and post tax liabilities and credits in Vendor Invoice Center Entry and General Ledger.
    4. To enable the Address Validation pop-up and Address Override feature, select the Address Validation option.
    5. Optionally, you can define multiple company codes at the warehouse level. For example, most of your company may be registered to collect tax in multiple states, but a particular warehouse location is a separate tax entity with the IRS and state tax board. To enable this feature, select the Tax Organization By Warehouse option.
    See the Infor Distribution SX.e Integration Guide for Vertex Cloud.
  11. If you are integrated with Sovos - SUT:
    1. In STEP Interface, select an option.
    2. In POA Tax Type, indicate the point of order acceptance value to use to autofill the default to Sales and Use Tax System. This setting is also used in TI Administrator Tax Jurisdiction to indicate the address information that is passed to Sales and Use Tax to determine the jurisdiction used by the calculator.
      • Blanks: We recommend that you do not select Blanks. If you select Blanks, contact a third-party tax service provider, such as Sovos GTD, to assist you in setting up all nexus information.
      • Ship To: The Customer Setup or Customer Ship To Setup address is used to determine taxing jurisdictions.
      • Call Center: If selected, you must verify all Sales Salesrep Setup records for the correct address and geo code setup. If any jurisdiction data is incomplete or does not exist, the tax calculation fails.
      • Ship From: In most cases the address will be the address for the warehouse in which the sales order was placed. For direct order purchase orders, the ship from address is the vendor’s address. For direct order warehouse transfers, the shipping warehouse address is used.
    3. In POO Tax Type, indicate the point of order origin value to use to autofill the Sales and Use Tax System. This setting is also used in TI Tax Jurisdiction Administration to indicate the address information that is passed to Sales and Use Tax to determine the jurisdiction used by the calculator.
    4. Select the Geo Interface option only if you use a third-party tax code validation package, such as Verazip or GeoCoder. If you are using one of these applications, but you are performing the interface in non-update mode, do not select this option.
  12. If you are subject to Value Added Tax, in the VAT Settings section, specify this information:
    VAT Registration #
    Specify your company’s VAT registration number.
    Settlement Discount Tax
    AP VAT
    Specify the GL account set up to record VAT taxes calculated in the Vendor or Pricing and Discounting modules.
    AP VAT Cash
    Specify the GL account set up to record VAT taxes if your SA Company Setup-Tax Analysis field is Cash.
  13. If you are integrated with Sovos GTD, use the Tax Groups section if you have addons that are non-taxable in some jurisdictions. Tax Group 1 should be reserved for the standard tax group. Create a Tax Group 2, 3, 4, or 5 labeled using the appropriate product code, such as freight charges, which have a product code of 40000. That number should be used as a description for one of the tax groups. Refer to your Sovos GTD documentation for a listing of product codes. If you are integrated with AvaTax, do not use groups 2-5. If you are subject to Value Added Tax, specify the applicable group for each level of VAT taxing. For each tax group that is exempt from VAT taxing, select the VAT Exempt option.
  14. If your are integrated with Sovos - SUT, in Sales Use Settings, specify this information:
    1099 Name

    The company name from the Required view autofills this field. If the company name is longer than 30 characters, the name is truncated. The 1099 name you specify should be the company name as you require this number to be displayed on the 1099 Form and wherever a remit to name is used.

    Federal Tax ID #

    Specify your company’s Federal Tax ID number.

    AP Tax
    Specify the GL account used to track use taxes paid by the company when you are purchasing products, and the taxes are posted on an accrual basis. This account is used if your Tax Method is Sales Use Tax -SUT or Sovos GTD, and the Sovos GTD functionality is used in the AP modules; that is, the Apply AP Taxing option is selected.
    AP Tax - Cash
    Specify the GL account used to track use taxes paid by the company when you are purchasing products, and the taxes are posted on a cash basis. This account is used if your Tax Method is Sales Use Tax -SUT or Sovos GTD, and the Sovos GTD functionality is used in the AP modules; that is, the Apply AP Taxing option is selected
  15. If you are using an external taxing package, or are using System Rates and are subject to Value Added Tax, in the Additional Settings section, specify this information:
    AP Tax - Self Assess
    If permitted in your jurisdiction, specify the GL account to post VAT amounts to when self-assessing on vendor invoices.
    AP Tax - Expense
    Specify the GL account to post taxes calculated on expense invoices.
    AP Tax - Tolerance %
    Specify the percentage tolerance to apply when you encounter differences between the tax amount on the vendor’s invoice and the amount calculated by the system or a third-party tax application. Differences are usually very small and are due to rounding of calculated amounts. If the difference is greater than this tolerance setting, a message is displayed during Vendor Invoice Center Entry and you must accept either amount.
  16. Click Save.
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