Reduce the time you spend monitoring and updating tax rate and taxability rules with CorpSystem Sales Tax Office for SAP. The advanced sales and use tax calculation system combines industry-leading tax rate and taxability content with highly accurate jurisdiction boundary information and sophisticated logic capable of supporting the most complex sourcing and tax calculation rules.
Sales Tax Office for SAP provides:
- Effortless Set-up — Configure the system to meet your exact needs, with options for business entities, business rules, nexus rules, users and functional permissions.
- Rates and Taxability — Stay up-to-date with trusted rate and taxability data from CCH, updated monthly with a simple download. SAP item categories are mapped to CCH SKU’s to activate the groups and items, with customer products, rules and tax rate overrides all supported.
- Nexus, Jurisdiction and Sourcing — Avoid collecting unnecessary taxes by accurately establishing nexus and determining which taxes must be collected, with advanced geocoding and spatial analysis.
- Flexible Calculation — Increase the accuracy of your sales tax calculations with the ability to precisely calculate taxes at the line item level, use multiple ship-from and ship-to combinations in a single invoice, manage minimum and maximum tax rules, and handle complex tax calculation routines involving tax brackets, tax charts and tiered taxes.
- Consumer Use Tax Processing — Perform consumer use tax self-assessments using your existing GL account numbers and/or purchase system codes to the standard SAP tax interface that is used to process purchase orders and vendor invoices. Modify the tax interface to apply tax decisions based on account number, configuring rules in Sales Tax Office to identify location, product and service classification, and usage.
- User-Friendly Interface — Increase productivity with easy-to-use features that let you drill down into the details of a transaction, create and maintain custom taxes and overrides, and originate tax only credits.
- Simple Exemption Management — Save time on handling exemptions with built-in exemption reason classifications or create custom exemption classes as required.
- End-of-Month Compliance — Create seamless, end-to-end automation with liability reports based on specified date ranges, audit reports for taxes and exemptions, and output files for delivery to your compliance needs.
Address Validation
Ensure reliable address information with the Address Validation API. The plug-in connects SAP to a third-party address validation service to validate and correct addresses automatically or with the push of a button.
CCH compiles commercial jurisdictional boundary information from multiple sources and combines it with our own proprietary data and processing to create unique “geoblocks” for all the different overlapping subsets of tax jurisdictions and ZIP +4 areas. When used in combination with a ZIP+4 or street address validation tool, this system provides an extremely accurate foundation for both nexus and situs determination by the Sales Tax Office application.
CCH has developed a comprehensive database of State, County, City, Local and Special Tax Districts for which both boundary definitions and tax matrices are maintained. Sales Tax Office for SAP offers exceptional granularity of boundary data and enhanced coverage of Special Tax Districts, including:
- Regional Transit Authorities
- School districts
- Police and fire districts
- Enterprise zones
- Restaurant and prepared food districts
Communication between the SAP ERP system and the Sales Tax Office tax calculation engine is established using SAP RFC (Remote Function Call) and SAP tRFC (Transactional RFC) tax interface, which exchanges data between the SD, FI, and MM modules of SAP.
The SAP tax interface enables Sales Tax Office for SAP to perform tax calculations that support functional tax and business requirements:
- Sales tax is estimated during the creation of quotes and sales orders.
- Sales tax liabilities are calculated on customer invoices, by line item, applying tax rate reductions when applicable;
- Customer claims for exemption (e.g. resale, not-for-profit, exempt organization, etc.) are applied during the tax calculation, which can be limited to specific products, by tax type, by tax authority, or a combination of related conditions.
- Sales tax estimates related to purchase orders or purchase requisitions are not recorded in the Sales Tax Office transaction history tables.
- Sales tax estimates or use tax accrual calculations are determined by the receiving, or ship-to, location (i.e. plant, cost center, storage location, etc.).
- Accrued use tax is recorded in Sales Tax Office transaction history table and in SAP, when applicable.
- The SAP ERP will perform a basic validation of sales tax charged by the vendor as compared to the tax calculated by Sales Tax Office. If the validation process does not agree with the sales tax charged by the vendor, then:
- Accounts payable staff can pay sales tax as billed by vendor, or
- Accounts payable staff can short-pay sales tax charged, and
- Accrue applicable tax amounts, if any.
- The SAP tax interface can be customized via “User Exit” to enable enhanced procure-to-pay processing logic contained in Sales Tax Office.
Sales Tax Returns Online lets you save time and eliminate errors by automatically populating your sales and use tax forms, schedules and worksheets with tax information from Sales Tax Office for SAP. Review, edit, print, audit and even e-file these signature returns, and download Detail Filing Reports to streamline your check request process.
Sales Tax Returns Online provides:
- Integration — Automatically populate forms by loading data directly from Sales Tax Office.
- Comprehensive Form Packaging — All forms include worksheets and schedules that tie directly to the main form for calculations.
- Electronic Filing — Set up an approval and confirmation process for creating electronic feeds and shipping returns to the state.
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