Customer Setup - Taxing field descriptions

The fields are listed alphabetically within each section. The fields displayed can vary depending upon whether the company is geographically based in the United States, the Canadian provinces, the United Kingdom, Mexico, and so on.

Taxing Information

Authority

If your company is set up as a Canadian company in SA Company Setup, this field is displayed. Select Domestic if GST is to be calculated for sales to this customer or shipto. Select Government if no GST is to be calculated. In this case, you must specify a GST certificate number.

City

Select the city in which this customer is located. A record must exist for the state, county, and city jurisdiction in the appropriate tax setup: SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup.

County

Select the county in which this customer is located. A record must exist for both the state, specified in State, and this county jurisdiction in the appropriate tax setup: SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup.

Other 1/ Other 2

Optionally, specify other tax jurisdictions in which the customer is required to pay sales or use tax using the Other 1 and Other 2 fields. This might include a special taxing district, such as a library, police, or school district. This jurisdiction must be set up for this state, county, and city in the appropriate tax setup: SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup.

Province

If your company is set up as a Canadian company in SA Company Setup, this field is labeled Province. This is the taxing province the warehouse is located in. A record must exist for the province. Canadian tax master records are set up in SA Goods and Services Tax Setup and SA Local Tax Setup.

State

We recommend you specify the customer’s normal taxing state jurisdiction. Specifying the jurisdiction here does not restrict the customer from being taxed in other states, because the customer to may be located in other states. If necessary, you can override the tax information during Sales Order Entry.

The state must be previously set up in the appropriate tax setup: SA Goods and Services Tax Setup, SA Sales Use Tax Setup, SA Value Added Tax Setup. If you leave the taxing state, county, and city blank, but specify a valid postal code in the customer address, the correct taxing state and locality autofills, provided you have set up postal code defaults in the appropriate tax setup.

Tax Group

This field is available only if your SA Company Setup-Taxes Tax Method is VAT and the Tax Interface is System Rates. Specify the tax group that applies to the customer. Tax groups are set up in SA Company Setup-Taxes.

Taxable Status

Settlement Discount Tax

This field is available only if your SA Company Setup-Taxes Tax Method is VAT and the Tax Interface is System Rates.

This option determines whether a settlement tax discount is applied to the customer’s invoice amount before VAT is calculated. Your options are <Default>, Gross, or Net. If you select <Default>, the company-level setting for this option in SA Company Setup-Taxing is used by the system. If you select Gross, a settlement discount is not applied and VAT is calculated on the gross or total invoice amount.

If you select Net, the terms discount rate assigned to this customer in Customer Setup-Required is used as the settlement tax discount rate and multiplied by the invoice amount to determine a net invoice amount. This net invoice amount is used to determine the VAT on the order line. The settlement tax discount amount is stored as a separate discount amount. Because an operator may have permission to override discounts at the line level in Sales Order Entry, the settlement discounts are pulled from all lines on the order before being averaged and applied to each Tax Group level.

You can also specify whether to include addons in the pre-tax discount calculation by selecting Include Addons in Customer Setup-Ordering.

Taxable type

The taxable status of customers and products can be established as Taxable, Non Taxable (exempt), or Variable. If you select Taxable, the customer is taxed during Sales Order Entry unless the product is nontaxable. If you select Non taxable, the customer or ship to is never taxed. If you select Variable, the customer or ship to is taxed based on customer and product settings.

See taxable status

The taxable type specified as the default in Customer Setup-Taxing, Customer ShipTo Setup-Taxing, and Product Warehouse Product Setup-Taxing, together with the SA Exemption Table Setup record determines the taxable status of each order entered in Sales Order Entry. The system automatically calculates taxes for sales orders and purchase orders.

Note:  If you have implemented AvaTax, or Sovos GTD, or Vertex Cloud, select the Taxable option. Third-party tax solutions use their own tax tables and exemption records to determine the tax liability for this customer or shipto.

If your company is set up as a Canadian company in SA Company Setup, the Taxable Type is determined by the value specified in the Authority field and the value in the PST License # field.

If Tax Authority is	And PST License # is	Then Taxable Status is
Domestic	Entered	Taxable
Domestic	Blank	Taxable
Government	Entered	Non Taxable
Government	Blank	Taxable

Non Tax Reason

If the customer is non-taxable or variable, you should specify a Non Tax Reason. The Non Tax Reason values are set up in SA Table Code Value Setup. The reasons are defined by you and should describe why the customer is non-taxable. If you have implemented a third-party solution, the reasons may be required to match a that solution's use codes. Non Tax Reasons can be used for reporting purposes.

Certification

GST Certificate #

Specify the Canadian customer’s Government Sales Tax (GST) certificate number in this field if a) the customer is exempt from paying GST, and b) you selected Government in the Authority field.

GST Registration #

Only specify a GST registration number in this field if the Canadian customer does not pay GST.

PST License #

When you specify a PST License # in this field, the Canadian customer is not charged PST.

PST Lic # Expiry Date

Specify the date the Canadian customer’s PST license expires. This field is informational only and does not affect tax calculations.

PST Registration #

If the Canadian customer does not pay Provincial Sales Tax (PST), specify the PST registration number in this field.

Tax Certificate #

If the customer is purchasing items from you for resale to their customers, or is non-taxable for other reasons, specify their tax exempt number here. You should require a copy of their tax exemption certificate before designating them as non-taxable. If they are a new customer and have not submitted their tax exemption certificate, set them up as taxable.

Note:  Any orders that are processed with taxes due can be adjusted later when you receive the certificate. Adjustments to credit a customer for taxes applied to invoiced orders are made in Customer Cash Receipts Entry. Uninvoiced orders can be adjusted directly in Sales Order Entry. An adjustment to taxes on orders in either Customer or Sales will be reflected on the SM Government Tax Register Report.

If your customer is purchasing items from you for their own consumption, leave this field blank.

Tax Certification Expire Date

If you specified a tax certificate number, specify the date on which the certificate expires. Tax exemption certificates generally expire within one year.

This field is for information only. It is not selected during Sales Order Entry. However, you can generate a list of those customers whose tax exemption certificates are about to expire in SA Government Exemption Table Report.

VAT Certificate #

Specify the customer’s VAT certificate number, if known.

VAT Registration #

Specify the customer’s VAT registration number. This is required if the customer resides in an European Community (EC) or European Union member country.