Define and Manage Vertex Sales Tax

This document describes how to define and manage sales tax in M3 BE when third-party system Vertex is used to calculate sales tax on customer invoices. With this solution, reporting and reconciliation of sales tax is performed in Vertex.

Vertex is used to calculate sales tax when customer invoicing is performed in M3. The required information from M3 is transferred to the Vertex application, where the sales tax is calculated and returned to M3. The total tax amount is accounted in M3 and if the 'Update tax details' check box has been selected in 'Settings – Sales Tax' (CRS793), detailed tax information can also be reviewed in 'CO Invoice. Display Transactions' (OIS354) or 'MCO Invoice. Display Transactions' (COS354). All reporting and reconciliation of sales tax is performed in Vertex.

This configuration is required to enable the functionality:

Division settings

Specify the tax method of the division in 'Company. Connect Division' (MNS100/G). Select alternative 3, 4 or 5 for parameter 'Tax method', based on these rules:

3, to calculate Vertex sales tax on customer invoices. No tax is calculated on supplier invoices.

4, to calculate Vertex sales tax on customer invoices and VAT/GST on supplier invoices.

5, to calculate Vertex sales tax on customer invoices and M3 Sales tax on supplier invoices.

On the same panel, enter the geographic code of the division. The geographic code is a pre-defined code that represents the administrative origin of the company.

Integration Settings - Tax Interface

Specify the integration settings in 'Integration Settings - Tax Interface' (CRS794).

Specify timeouts as applicable:

Settings – Sales Tax

Specify settings for sales tax in 'Settings – Sales Tax' (CRS793).

Tax codes

Tax codes are managed in 'Tax Codes. Open' (CRS130).

Geographical codes

Geographical codes represent a tax jurisdiction in Vertex. Use M3 Browse to select a geographical code in 'Geographic code lookup. Open' (CRS129).

Exemption certificates

Exemption certificates can be used in Vertex to exempt a transaction from tax. Specify the exemption certificate number in 'Customer. Open' (CRS610). The exemption certificate will be sent in the interface to Vertex. The tax exemption rules connected to an exemption certificate are managed in Vertex.

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