Taxable addons

Addons can be calculated by the system as an amount or percent. If the calculation method is percent, the percent is multiplied against the line item total to yield the addon amount. Addons can be taxable or non taxable. If they are taxable, each jurisdiction can have a different tax rate. When you apply an addon to an order, the sales tax rate from the jurisdiction or tax group record is used to calculate taxes on the addon amount. After you define addons in SA Order Entry Addon Setup, each addon is set up as taxable or non taxable in the tax master record and is stored in a table called SASGA.

Back orders

When backorders are created by the system, new addons are calculated based on the new amounts. If the Freight value for the addon in SA Order Entry Addon Setup is Current, each order/suffix combination is treated by the system like a separate order to determine if the addon should be changed.

Note: The Zero Level and Type fields in SA Order Entry Addon Setup provide flexibility when addons are applied to an order when a zero level is encountered. A blank Zero Level field indicates you want to calculate the addon and apply the addon on the original order only (-00) suffix. A value of Current indicates that you want to have the addon applied to only the current order and suffix. This method treats each order or suffix combination like a separate order to determine if the addon should be charged. A value of Any Zero Level indicates that all suffixes for the order will be checked and if any one suffix meets the zero level, all of the suffixes for the order will be exempt from the addon.

Cash on delivery (COD)

COD addon amounts may or may not be taxable. This depends on how you enter the addon on the order. COD fees are taxable if they are added manually to the order. Manual entry requires that the COD fee be set up in SA Order Entry Addon Setup. COD addons that are calculated based on records set up in Customer Setup-COD Addons are not taxed.

Restocking charges

Similar limitations apply to restocking charges, which are assigned in SA Order Entry Addon Setup for each return reason. Restocking charges can be required on the return reason applied to a Return Merchandise (RM) order. When you enter a return reason for an RM order, restocking charges are calculated automatically, but are not taxable. As with COD fees, restocking charges are taxable if they are a) entered manually, and b) set up in SA Order Entry Addon Setup and the tax master record.

Excise taxes

If a product is to be assessed an excise tax, you must set up a tax master record for a tax group other than 1 (standard). The excise tax rate or flat amount can be set up on that tax record. In turn, the appropriate tax group should be defined on that specific product’s Product Warehouse Product Setup-Taxes record. The excise tax calculated for that product is reflected in the total tax amount, not the addons total.

If you are integrated with AvaTax, addons are set up differently. See the Infor Distribution SX.e Integration Guide for AvaTax for specific information.