SM Government Tax Register Report overview

Sales Manager > Report > SM Reports > SMRGR

Function acronym: SMRGR

Use this report to prepare your monthly or quarterly tax reports for the appropriate taxing authorities. The report can also be used as an audit trail of all taxable and non-taxable Sales Order Entry transactions.

This report summarizes the taxes calculated for sales orders and lists them by tax jurisdiction, providing a total for each jurisdiction.

The data for this report is obtained from Customer Transaction Entry tax audit files [ARETT]. An internal instance of this tax audit file is created for every jurisdiction applicable to the order based on the combination of tax-related settings in the customer record, product record, and jurisdiction record. The tax audit files are created whenever an order is entered in Sales Order Entry. Taxes are calculated for ordered, invoiced, or paid orders depending on which options you specify . In the report, tax totals are displayed for each jurisdiction.

  • Adjustments made during Customer Cash Receipts Entry also update the tax audit files, and are then reflected in the SM Government Tax Register Report. Any adjustments or write-offs posted during Customer Cash Receipts Entry are shown as a negative line item on the report.
  • For each order with multiple tax jurisdictions, a separate instance of the tax audit file exists for each jurisdiction. Even if the order is non-taxable, a tax audit file is created, although the file contains zero tax amounts. Each jurisdiction is still displayed, but the order amount is shown as non-taxable.

You can run this report multiple times because no file updating occurs as a result of running the report. Generally, you should run this report monthly or quarterly when you must reimburse the state, county, city, and other tax authorities. This report is sorted by state, county, city, and other, depending on the jurisdictions you specify in the report option, Print (S)tate, Coun(T)y, (C)ity, (O)ther.

For example, if you run the report for all jurisdictions, the report provides, in sequence, a) the state tax for a state, b) the county taxes by county, c) the city taxes, within each county, and d) any other taxes within each city. To limit the report to only city taxes, specify a C for city in the option, Print (S)tate, Coun(T)y, (C)ity, (O)ther. The report shows only the city tax jurisdictions sorted by city within the state.

Take note of these conditions:

  • The Taxable Sales, Sales Tax [tax amount, and Exempt Sales or Exempt Use [non-taxable amount] columns in the report will contain negative values for adjustments or write-offs, return merchandise orders, credit memos, and correction orders. If you are running the report for invoices in paid status, returns or credit memos will be reflected only when they are applied, either partially or fully, against an invoice. Credits not applied are not reported in this situation.
  • If you write off taxes for all jurisdictions in an order, the taxable amount will be shown in the Exempt Use column for the applicable jurisdictions. However, if you write off some jurisdictions' tax amounts, the taxable amount will not be shown in the exempt column for the jurisdictions written off.
  • A product surcharge cost, such as for DATC, Rush, is taxable if your addon 1 [Freight In] is taxable. The product surcharge cost is added to addon 1 [Freight In] before taxes are calculated.
  • Core charges on all line items are always non-taxable.
  • Taxable addons are also included in the state, county, city, and other tax totals. The addons are automatically added to the tax amounts calculated for the state jurisdiction.
  • If non-taxable addons do not have a non-tax reason specified on the Sales Order Entry order header, Addon #1 is used to signify addons.

Accrual or Cash accounting

Use the option, Print (O)rdered, (I)nvoiced,(P)aid, (W)O, to filter which orders are shown in the report. This option is influenced by what accounting method you select in SA Company Setup-Taxes-Tax Settings-Tax Analysis. If you use accrual accounting for recording tax liabilities, you will print all orders invoiced during the selected period. If you use cash, you will print only those invoiced orders which have been paid, either partially or fully.

When an invoice is paid in Customer Cash Receipts Entry, the tax amounts will be recorded as liabilities if your tax analysis method is cash. Payments are applied to the tax amounts first on invoices; they are not prorated in the case of partial payments. When payments are posted, a General Ledger journal entry will be made to transfer accrued amounts to the tax liability accounts you have defined in the Cash Basis G/L Accounts section of SA Sales Use Tax Setup-GL.

If your option is accrual, tax amounts are recorded as tax liabilities, and posted to the taxes accrued accounts, as soon as the order is invoiced.

Adjusting or writing off tax amounts

If you must make adjustments to tax rates or amounts after reviewing this report, you can do so if the invoice has not been fully paid. Adjustments to orders in Stage 1 [Ordered], 2 [Picked], or 3 [Shipped] can be made in Sales Order Entry by overriding the tax rates or amounts. The ability to override depends on your security. In SA Operator Setup-Entry Options, select Yes in the Allow Sales Tax Rate Override field.

If the order has been invoiced, you can make adjustments to tax rates or amounts, or completely write off taxes in Customer Cash Receipts Entry. The adjustment will be reflected as a negative amount on a separate line item for each appropriate jurisdiction on the tax register report.

The taxable amount columns on this report show the amount that is taxable based on how much tax was paid during the date range entered on the report. If you run the report for the same month the write-off is posted, the exempt amount is included on the report. If you run the report for a month other than the month the partial write-off was performed, the exempt amount and tax amount that was written off will not be included on the report.

Handling exempt or taxable amounts when tax rates are zero

If all four tax rates, that is, Sales, Use, Transit, or Excise, in the report record are zero and there is an exempt amount for the order, the exempt amount is displayed in either the Exempt Sales or Exempt Use column. If all four tax rates are zero and the customer is not exempt, that is, the customer record is set to Taxable, the taxable amount displays in either the Taxable Sales or Taxable Use column.