Accounts Receivable "Use Tax" Support
A cost-based "Use Tax" is supported for Service Management Sales and Service Orders. The existing tax code within
Service Management can be configured to use either
price or cost as the tax basis. In addition, the ability to assign a default tax code for a
specific customer and work type combination is provided, thus when implemented properly
reduce the decision making requirement of an order entry clerk.
Price and Cost Tax Basis Option
Each Tax Code defined within Service Management can be flagged as either a tax base source of "cost" or "price".
Note: Currently, Service Management does not differentiate between the cost and price of these
components on an order. So, these items (if flagged to be taxed) use the value from the
order header as the tax basis regardless of the Tax Basis check box on the tax code.
Sales Orders and Calculated SRO support
The Use Tax calculation is straight forward for SROs, which are calculated time and material, as the cost of each posted transaction is used. For sales orders, the cost of each sales order line is used.
Project Fixed SROs support
All costs for any transaction that has not been invoiced are used to calculate the Use Tax value when a Project Fixed SRO is invoiced.
In addition, the project fixed operation is automatically closed upon invoicing as a control point.
Note: If additional cost is posted to an operation with a Cost Based Tax Code after the
invoice has been generated, there is not a way to apply tax on these transactions unless
the price is changed either on the SRO operation (Project Fixed) or SRO transaction
(Calculated).
Note: Mix-matched tax source tax codes between the two tax systems on the same SRO or sales
order are not allowed. If a price-based tax code is assigned at the order header, all
detail records are only allowed the assignment of price based tax codes.
Contracts and Credit Memos
Neither contracts or credit memos support Use Tax and therefore tax codes of tax base source "cost" cannot be assigned.
Other Information
- For service orders, the Customer/SRO Types form has been expanded to allow different tax code defaults to be set up for a customer based on the SRO Type. If the tax code on this form is not populated, the tax code defaults from the customer.
- The invoice paperwork has been altered to display the Use Tax value, unless the Include Tax in Price option is chosen, in which case, the tax is rolled into the price.
- The Use Tax value is displayed on existing tax reports within Service Management.