New Sales Tax by Item feature

As you probably know, TopForm has always had the option to determine whether an order should be tax exempt by customer, ship-to or by product code. However you may not be aware, that TopForm now has a new option to determine the tax status at the "Item" level. This enhancement allows the user to designate a Taxable Status for Inventory and Custom Items.

A new field has been added to the Item and Custom Item Master Files. This new field is call called "Tax Type". This field has the following input options:

Y Taxable

C For custom items. The State of Illinois provides for custom items to be taxed at one-half their value.

E For tax exempt items

Blank Don't Process (ignore)

The following is a brief overview of the process that TopForm now uses to determine if a line on an order should be taxable. It is hierarchical starting with the Customer and ending with the Item being ordered

• During Order Entry including orders processed via Web.ec or the Order Entry Gateway, your TopForm system will first determine if the Customer is tax exempt. If so, the Taxable Flag on the order will be set to non taxable and vice versa.

• Next the program will check the ship-to location record to determine if it has been coded as tax exempt and change the tax flag on the order accordingly. If the user has chosen to enter a manual ship-to or if they "skip" the ship-to field altogether, the Taxable flag will remain set as it was from Customer Master file.

• Finally, during entry of the order/invoice lines, the program will check the Product Code for each item on the order/invoice. If the order is taxable and the flag on the Product Code says to "Not tax," the tax flag on that particular line will be changed. If the Order is Not-Taxable, the flag on the Product Code will not have an effect on whether the order is taxable or not.