Use the following example to understand how each of the options (Item, Ext, Gen) in the Max/Spt column on the Taxable States screen and Taxable States Overrides screen works. If an order has multiple generations, the scenarios in the following examples apply to each generation.
Note: The National Sales Tax Database functionality has not been incorporated into Solar Eclipse as of this release. If prompted, log on to the character-based system.
Example Assumptions:
This example only deals with state and county tax. If a city tax were defined, an additional calculation for that tax would have to be made.
|
State Tax |
6% |
|
County Split Amount |
$5000.00 |
|
County Tax |
1% |
|
City Split Amount |
$2000.00 |
|
City Tax |
2% |
Example Items on Order:
|
Qty |
Prod Desc |
Unit Price |
Ext Amt |
|
3 |
Item A |
3000.00 |
9000.00 |
|
5 |
Item B |
200.00 |
1000.00 |
|
1 |
Item C |
6000.00 |
6000.00 |
|
Generation Total |
16000.00 |
||
When Max/Spt = Item
The amount in the County Split Amount field on the National Sales Tax Database Maintenance screen works with respect to the unit price for each single item on the order.
State tax is calculated for each line item on the extended amount.
County tax is calculated using the unit price when it is less than or equal to the $5000.00 County Split Amount (items 1 and 2 below). If the unit price exceeds $5000.00, county tax is calculated using the $5000.00 maximum amount (item 3 below).
City tax is calculated using the unit price when it is less than or equal to the $2000.00 City Split Amount (item 2 below). If the unit price exceeds $2000.00, city tax is calculated using the $2000.00 maximum amount (items 1 and 3 below).
|
Item |
Qty |
Unit Price |
Ext Amt |
Calculated Tax |
Total Tax |
|
Item 1 |
3 |
3000.00 |
9000.00 |
State tax = $9000.00
x 6% = $540.00 |
$750.00 |
|
Item 2 |
5 |
200.00 |
1000.00 |
State
tax = $1000.00 x 6% = $60.00 |
$90.00 |
|
Item 3 |
1 |
6000.00 |
6000.00 |
State
tax = $6000.00 x 6% = $360.00 |
$450.00 |
|
Total state and county tax for the order generation |
$1290.00 |
||||
When Max/Spt = Ext
The amount in the County Split Amount field on the National Sales Tax Database Maintenance screen works with respect to the extended amount of each line item on the order.
State tax is calculated for each line item on the extended amount.
County tax is calculated using the extended line item amount when it is less than or equal to the $5000.00 County Split Amount (item 2 below). If the extended line item amount exceeds $5000.00, county tax is calculated using the $5000.00 maximum amount (items 1 and 3 below).
City tax is calculated using the extended line item amount when it is less than or equal to the $2000.00 City Split Amount (item 2 below). If the extended line item amount exceeds $2000.00, city tax is calculated using the $2000.00 maximum amount (items 1 and 3 below.
|
Item |
Qty |
Unit Price |
Ext Amt |
Calculated Tax |
Total Tax |
|
Item 1 |
3 |
3000.00 |
9000.00 |
State tax = $9000.00 x 6% = $540.00 |
$630.00 |
|
Item 2 |
5 |
200.00 |
1000.00 |
State
tax = $1000.00 x 6% = $60.00 |
$90.00 |
|
Item 3 |
1 |
6000.00 |
6000.00 |
State tax = $6000.00 x 6% = $360.00 |
$450.00 |
|
Total state and county tax for the order generation |
$1170.00 |
||||
When Max/Spt = Gen
The amount in the County Split Amount field on the National Sales Tax Database Maintenance screen works with respect to the generation total for the order.
State tax is calculated on the generation total of $16000.00.
County tax is calculated on $5000.00, because the generation total exceeds this amount.
City tax is calculated on $2000.00, because the generation total exceeds this amount.
|
Calculated Tax |
Total Tax |
|
State tax = $16000.00 x 6% = $960.00 |
$1050.00 |
See Also: