TI Tax Jurisdiction Administration overview

Tax Interface > Administration > Tax Jurisdiction

Function acronym: TIATD

Use this function to determine which jurisdiction to use to calculate taxes.

This tool does not update any tax values or order information in Distribution SX.e. The primarily use for this tool is for troubleshooting.

The jurisdiction determination is based on several criteria, including shipto, shipfrom, point of origin (POO), and point of order acceptance (POA). Each of these address values can affect which jurisdiction’s taxes are used to calculate tax liability. Before you use this tool, verify that the POA Tax Type and POO Tax Type in SA Company Setup-Taxes are set appropriately.
Note: For AvaTax, the field names are Point of Origin and Point of Acceptance. For Vertex Cloud, the field names are Administrative Origin [Point of Origin] and Administrative Destination [Point of Acceptance].

Some states, such as Pennsylvania, use the POO and POA to determine tax rates, and the POA and POO may not necessarily be the same as the shipto and shipfrom. For example, suppose the ABC Vendor Company is headquartered in New York City, and all sales orders are processed through headquarters.

In this example, the POA Tax Type for this company in SA Company Setup-Taxes is Ship From and the POO Tax Type is Ship To. Joe Salesrep works out of the ABC Vendor Company’s Pittsburgh sales office. Joe visits XYZ Buyer Corporation’s Cleveland office, where Sam Purchaser orders 100 widgets to be shipped to XYZ Buyer Corporation’s Dallas plant. Joe transmits the order to headquarters in New York, where the order is finalized. The widgets are shipped freight on board (FOB) from ABC Vendor Company’s Tulsa warehouse. The locations, then, are:

  • Shipfrom Location - Tulsa, OK
  • Shipto Location - Dallas, TX
  • Point of Order Acceptance (POA) - New York, NY
  • Point of Order Origin (POO) - Pittsburgh, PA

You can also use this tool to specify a product code to determine the taxability of an individual product within that jurisdiction. For example, if you received tax rate updates from your third-party tax interface, you could specify address combinations to calculate the tax and see if those jurisdictions were updated.

See the online documentation for information or your third-party documentation about product codes and how they are used to calculate taxes.

If you use this tool when determining the correct jurisdiction for taxing line items in Sales Order Entry that are tied to a Direct Order PO or WT, the ship from address will be the:

  • vendor’s address, if the line is tied to a Direct Order (DO) purchase order (PO)
  • shipping warehouse, if the line is tied to a Direct Order (DO) warehouse transfer (WT)

When determining the tax jurisdiction for an entire invoice, lump sum billing, or addons on a Sales Order Direct Order, the order header is checked for any tie information for a specific vendor or warehouse. If found, the address of the vendor or warehouse is used as the shipfrom address. If the order is a Sales Order Direct Order, and the default sourcing is authorized replenishment path (ARP), no vendor or warehouse is stored on the order header. In this case, the address of the shipping warehouse is used.