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BAAN IVc

Tax User Guide

A publication of:

Baan Development B.V.P.O.Box 1433770 AC BarneveldThe Netherlands

Printed in the Netherlands

© Baan Development B.V. 1999.All rights reserved.

The information in this documentis subject to change withoutnotice. No part of this documentmay be reproduced, stored ortransmitted in any form or by anymeans, electronic or mechanical,for any purpose, without theexpress written permission ofBaan Development B.V.

Baan Development B.V.assumes no liability for anydamages incurred, directly orindirectly, from any errors,omissions or discrepanciesbetween the software and theinformation contained in thisdocument.

Document Information

Code: U7249A USGroup: User DocumentationEdition: ADate: June 1999

i

Tax User Guide

1 Introduction 1-1Basic tax handling 1-1Destination sales tax 1-1Tax provider interface 1-1

2 Basic tax handling 2-1Overview 2-1Tax tables 2-3Tax codes 2-3Tax codes by country 2-4Tax related parameters 2-8Group Company Parameters (tfgld0101m000) 2-8ACR Parameters (tfacr0100m000) 2-8ACP Parameters (tfacp0100m000) 2-9CMG Parameters (tfcmg0100s000) 2-10Sales Order Parameters (tdsls4100m000) 2-11Financial Integration Parameters (tdsls6100m000) 2-11Tax related master data 2-11Maintain Chart of Accounts (tfgld0108m000) 2-11Posting data by tax code 2-12Items 2-12Tax processing sessions 2-12Allocate tax on matched purchase invoices 2-12Change tax amounts and accounts on purchase invoice 2-12Tax analysis reports 2-12Display tax analysis 2-12Print tax analysis 2-12Print tax analysis (suppliers or customers) 2-13Print yearly tax report (suppliers or customers) 2-13

3 Destination sales tax 3-1Overview 3-1Destination sales tax tables 3-3Tax authority groups 3-3Tax authority codes 3-4Tax codes by country 3-4Tax code defaults 3-5

Table of contents

Table of contents

Tax User Guide

ii

Exceptions by tax location 3-9Tax code default derivation logic 3-9Tax exemptions 3-12Maintain Countries (tcmcs0110m000) 3-13Destination sales tax parameters 3-14COM Parameters (tccom0000m000) 3-14ACP Parameters (tfacp0100m000) 3-14Destination sales tax processing 3-15Test tax structure 3-15Change tax rates by tax authority 3-16Purchase expense tax 3-16Miscellaneous purchase invoices 3-17Matched purchase invoices 3-17Non-singular tax codes by line 3-17Tax ledger accounts 3-17Purchase tax reports 3-18Destination tax reporting 3-18Print tax analysis 3-18Print tax summary by tax authorities 3-18Print tax exemption analysis 3-18

4 Tax provider interface 4-1Overview 4-2Static data 4-5Dynamic data 4-5Tax Provider tables 4-6Maintain Countries (tcmcs0110m000) 4-6Country Tax Provider register 4-6Product categories 4-8Product category tax matrix 4-9Display/print product categories 4-10Display/print product category tax matrix 4-10Contract Types (tssma2124m000) 4-10Tax Provider parameters 4-10Tax Provider parameters 4-10API parameters 4-14Tax Provider setup 4-15Tax jurisdiction 4-15Addresses 4-17Tax Provider exception setup 4-23Tax Provider tax processing 4-23Tax calculations for Tax Provider 4-23Tax summary 4-28

Table of contents

Tax User Guide

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Tax Provider calculation utility 4-28Finance transactions 4-32Tax Provider tax reporting 4-32Line tax information 4-33Tax provider’s tax register 4-33Tax provider technical design 4-33

5 Conversion considerations for tax provider 5-1Pre-conversion steps 5-1Conversion steps 5-5Post-conversion considerations 5-12Technical implementation considerations 5-12

6 Tax provider interface installation guide 6-1BAAN tax provider installation 6-1TAXWARE 6-1Quantum 6-3BAAN Tax API installation 6-4UNIX 6-4Windows NT 6-5Environmental variables 6-6Setup environmental variables 6-7Baan windows configuration 6-9Communication 6-10UNIX 6-10Windows NT 6-11Shared memory 6-11Error codes 6-11Debug capability 6-16TAXWARE 6-16Vertex 6-16

7 Frequently asked questions 7-1General tax provider questions 7-1TAXWARE specific questions 7-4Vertex specific questions 7-5

8 Trouble shooting 8-1

9 Glossary 9-1

10 Appendix 10-1Sample invoice 10-1

Table of figures

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Figure 1, Basic tax flow 2-2

Figure 2, Maintain Tax Codes (tcmcs0137m000) 2-3

Figure 3, Maintain Tax Codes by Country (tcmcs0136m000), form 1 2-4

Figure 4, Maintain Tax Codes by Country 9tcmcs0136m000), form 2 2-5

Figure 5, Define tax codes by country 2-6

Figure 6, Maintain Single Tax Rates (tcmcs0132s000) 2-7

Figure 7, Destination tax flow 3-2

Figure 8, Maintain Tax Authority Group Codes 3-3

Figure 9, Maintain Tax Authority Codes (tcmcs1137m000) 3-4

Figure 10, Maintain Tax Codes by Postal Code (tcmcs1136m000) 3-6

Figure 11, Maintain Exceptions for Taxes (tcmcs1138m000) 3-7

Figure 12, maintain Exceptions for Taxes - Purchase 9tcmcs1146m000) 3-8

Figure 13, Maintain Exceptions by Tax Location (tcmcs1139m000) 3-9

Figure 14, Maintain Reasons for Tax Exemptions (tcmcs1141m000) 3-12

Figure 15, Maintain Tax Exemptions for Customer by Tax Authority(tcmcs1142m000) 3-13

Figure 16, Test Tax Structure (tcmcs1199m000) 3-15

Figure 17, Change Tax Rates by Tax Authority (tcmcs1201m000) 3-16

Figure 18, Tax provider flow 4-2

Figure 19, Baan and tax provider communication 4-4

Figure 20, Maintain Country Tax Provider Resister (tccom1140m000) 4-7

Figure 21, Maintain Product Categories (tccom1138m000) 4-8

Figure 22, Maintain Product Category Tax Matrix (tccom1139m000) 4-9

Figure 23, maintain Tax Provider Parameters (tccom6150m000) 4-11

Figure 24, Maintain Tax Provider Parameters (Activation Warning) 4-11

Table of figures

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Figure 25, Maintain Tax Provide Parameters (Activation Confirmation) 4-11

Figure 26, Maintain API Parameters (tcapi1136m000) 4-14

Figure 27, Address Jurisdiction Verification Utility (tccom6210m000) 4-15

Figure 28, Maintain Customers (tcmcs1101m000) 4-19

Figure 29, Address Format Conversion Utility (tccom6211m000) 4-21

Figure 30, Tax Provider Calculation Utility (tccom6212m000) 4-29

Figure 31, Display Tax Provider Amounts/Rates (tccom6213s000) 4-29

Figure 32, Process Tax Provider Adjustments (tccom6214s000) 4-30

Figure 33, Generic API scenario 4-34

Figure 34, Maintain Country Tax Provide Register (tccom7140m000) 5-1

Figure 35, Address Format Conversion Utility (tccom6211m000) 5-3

Figure 36, Close Periods (tfgld1206m000) 5-4

Figure 37, Maintain Tax Provider Parameters (tccom6150m000) 5-5

Figure 38, Maintain API Parameters (tcapi1136m000) 5-6

Figure 39, Address Jurisdiction Verification Utility (tccom6210m000) 5-7

Figure 40, Maintain Product Categories (tccom7138m000) 5-8

Figure 41, Maintain Product Category Tax Matrix (tccom7139m000) 5-9

Figure 42, Maintain Contract Types (tssma2124m000) 5-10

Figure 43, Maintain Terms of Delivery (tcmcs0141m000) 5-11

Figure 44, Taxware system flow 6-2

Figure 45, Vertex Quantum system flow 6-3

Figure 46, Login 6-9

Figure 47, BW Configuration 6-9

Figure 48, BW Configuration 6-16

Figure 49, Sample Invoice 10-1

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This document is intended to act as a supplement to the Baan online Help. Itprovides additional guidance for sales tax features available in Baan. Thisincludes the setup of master data, as well as the calculation and reporting of salestax data.

The Tax provider interface is also covered in this document. However, specificdetails related to the use and installation of Tax Provider partner software mustbe directed to the Vertex or TAXWARE support organizations.

About this document

About this document

Tax User Guide

viii

Tax User Guide

1-1

Baan provides basic sales tax functionality for all customer and suppliertransactions. General features of sales tax in Baan include tax code and ratedefinition, determination of tax code defaults, tax calculation, and tax analysisreporting. Flexibility is available when you define the method of processing andcalculation through various parameters and tables.

Sales tax handling in Baan can be broken down into the following categories:

n Basic tax handlingn Destination sales taxn Tax provider interface

Basic tax handlingBasic tax handling consists of the setup of parameter and table data as well as thebasic tax calculation and reporting for a simple tax environment. Destinationsales tax and the Tax provider interface build on the basic tax handling data andprocesses available in order to handle a more complex tax environment.

Destination sales taxDestination sales tax is intended to meet the needs of those countries that do notuse the VAT method of taxation on sales, such the United States. Featuresintroduced in the 3.0 release established destination sales tax with theintroduction of a link between postal code and tax code. The concept of taxauthorities was also introduced at that time. Subsequent releases have continuedto expand on the destination sales tax processing functionality.

Tax provider interfaceThe Tax provider interface is specifically intended for United States andCanadian users. It was originally introduced in the Triton 3.lb release. Thepartner products that are interfaced are Vertex’s Quantum For Sales and Use Taxand TAXWARE’s SALES/USE Tax System.

1 Introduction

Introduction

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When you use the Tax provider interface, BAAN tax codes only determineposting accounts. The Tax Provider makes all determinations of tax rates andamounts based on the addresses and product information passed by BAAN.Special sessions are available in the Common Parameters menu for APIParameters and Tax Provider Parameters. In addition, a Tax Provider menu isavailable in the Tables to set up the tax provider information.

This document explains the procedures for setup and usage of the sales taxfeatures in Baan. The information is grouped into the three categories previouslymentioned. In addition, answers to frequently asked questions and hints fortroubleshooting are included at the end of the document.

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Basic tax handling covers the general set up and procedures to maintain basic taxinformation in Baan. This includes the following types of data:

n Tax tablesn Tax related parametersn Tax related master data

This data has an impact on tax calculation and reporting, regardless of whetherdestination sales tax or the Tax provider interface is activated.

Basic tax processing and reporting procedures are also covered in this chapter.

OverviewThe taxability of a transaction is determined in Baan based on tax codes. If no taxcode is referenced on the document header or line, the transaction is not taxable.If a tax code is referenced, the transaction is taxable and the specified tax codedetermines the method of handling the tax. The tax code also determines the taxamount when the Tax provider interface is not activated. Tax codes default basedon the item for transactions in Logistics, but you can modified them. Changingthe item code on a transaction automatically triggers a re-derivation of the taxcode based on the newly entered item.

2 Basic tax handling

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Create Tax Codes

Define Tax Codesby Country

Assign Tax Codesto Items

Process Orders,Invoices, Etc

Display/Print TaxAmounts

Figure 1, Basic tax flow

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Tax tablesThere is a Tax Tables menu in the Common module that contains the sessionsthat you use to define the basic tax information for a company in Baan. The datadefined here is used for taxable transactions throughout Baan.

Tax codes

Use the Maintain Tax Codes (tcmcs0137m000) session to define valid tax codesfor a company. The details related to use of the tax code are maintained inseparate sessions.

Figure 2, Maintain Tax Codes (tcmcs0137m000)

In general, tax codes must correspond to the lowest level tax jurisdiction that istracked in Baan. (For example, tax codes correspond to cities if there is sales taxon the city, county and state levels. Tax codes correspond to counties if there isno sales tax at the city level, but there is county and state sales tax.)

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Tax codes by country

Use the Maintain Tax Codes by Country (tcmcs0136m000) session to define thedetails related to the use of a tax code in a particular country. The ledgeraccounts and dimensions to be used for posting tax amounts are specified, as wellas several other options that control the method for handling tax.

Figure 3, Maintain Tax Codes by Country (tcmcs0136m000), form 1

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Figure 4, Maintain Tax Codes by Country 9tcmcs0136m000), form 2

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As illustrated in Figure 5, several subsessions are started through the Tax Codesby Country session to further define tax data.

No

Enter TaxCodesby Country

Singular?

Create MultiipleTax CodeSequenceNumbers

MaintainSingularTax Rates

Maintain MultipleTax Rates

Yes

Figure 5, Define tax codes by country

Multiple tax codes

Use the Maintain Tax Rates by Tax Code (tcmcs0135s000) session to definecertain tax details for Multiple Tax Codes (the Singular Tax field is No in theTax Codes by Country (tcmcs0136m000) session). In this case, multiplesequence numbers can be assigned to a single combination of country and taxcode to differentiate tax amounts for various jurisdictions. Tax can be calculatedindividually (parallel) for each sequence number or inclusive of the taxcalculated on previous sequence numbers (cumulative).

Single and multiple tax rates

Use the Maintain Single Tax Rates (tcmcs0132s000) and Maintain Multiple TaxRates (tcmcs0133s000) sessions to define tax rate data.

n Use the Maintain Single Tax Rates (tcmcs0132s000) session when theSingular Tax field is Yes in the Tax Codes by Country (tcmcs0136m000)session.

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n Use the Maintain Multiple Tax Rates (tcmcs0133s000) session if the SingularTax field is No.

In either case, the following fields are defined per effective date:

n Tax Ratesn Maximum Tax Amountn Tax Base Amountn Rate for Excess

Figure 6, Maintain Single Tax Rates (tcmcs0132s000)

The defined tax rate is applied to taxable amounts up to the tax base amount,subject to the maximum tax amount. The rate for excess is applied to taxableamounts that exceed the tax base amount, also subject to the maximum taxamount.

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For example, the tax calculations in the following table would result from thefollowing data:

n Tax rate = 10%n Maximum tax amount = $10,000n Tax base amount = $50,000n Rate for excess = 5%

Order Amount 10,000 100,000 1,000,000

Amount subject to tax base amount of 50,000 10,000 50,000 50,000

10% Tax rate on base amount 1,000 5,000 5,000

Amount above tax base of 50,000 0 50,000 950,000

5% Excess tax rate applied 0 2,500 47,500

Total of base and excess tax amounts 1,000 7,500 52,500

Maximum tax amount 10,000 10,000 10,000

Calculated tax amount (lower of total or max) 1,000 7,500 10,000

Tax related parametersThere are parameters throughout Baan that have an impact on the way tax iscalculated. These parameters are identified and explained in this section.

Group Company Parameters (tfgld0101m000)

The Number of Tax Periods parameter determines the number of periods to bedefined in the calendar for the Period Type of Tax.

n Periods are defined in Maintain Periods (tfgld0105m000) session.

n These periods are used in tax analysis reporting.

ACR Parameters (tfacr0100m000)

The Level of Tax Calculation (Invoice Header/Transaction Line) parametercontains the default value for the Level of Tax Calculation field on the ManualSales Invoice header in the Accounts Receivable module.

n The default value can be modified during invoice creation or maintenance ifno invoice lines are present.

n A value of Invoice Header for this field indicates that tax is calculated basedon the total invoice amount and the tax code entered on the invoice header.

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n The invoice line tax code and amount fields are not accessible when the taxcalculation level is Invoice Header.

n A value of Transaction Line for this field indicates that tax is calculatedindividually for each line based on the amount for that line and the tax codeentered on that line.

n The invoice header tax code and amount fields are not accessible when thetax calculation level is Transaction Line, but the invoice header tax amountfield is filled with the sum of the invoice line tax amounts.

ACP Parameters (tfacp0100m000)

The Level of Tax Calculation (Invoice Header/Transaction Line) parametercontains the default value for the Level of Tax Calculation field on the PurchaseInvoice header in the Accounts Payable module.

n The default value can be modified during invoice creation or maintenance ifno invoice lines are present.

n A value of Invoice Header for this field indicates that tax is calculated basedon the total invoice amount and the tax code entered on the invoice header.

n The invoice line tax code and amount fields are not accessible when the taxcalculation level is Invoice Header.

n A value of Transaction Line for this field indicates that tax is calculatedindividually for each line based on the amount for that line and the tax codeentered on that line.

n The invoice header tax code and amount fields are not accessible when thetax calculation level is Transaction Line, but the invoice header tax amountfield is filled with the sum of the invoice line tax amounts.

Tax Code for Tax to be Specified

n Use this parameter to specify a tax code that can later be referenced on apurchase invoice header to indicate that the total invoice amount is allocatedbetween several tax codes.

n When the specified tax code is used on a purchase invoice header, theMaintain Tax Transactions (tfacp1112s000) session can be started to enter thebreakdown of the invoice total into the appropriate tax codes.

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CMG Parameters (tfcmg0100s000)

The Calculate Tax on Advance Payments/Receipts (Y/N) parameter indicateswhether tax is charged on advance payments. If it is Yes, tax is chargedwhenever the advance payment amount is greater than the value defined forMinimum Amount for Tax Calculation parameter.

The Minimum Amount for Tax Calculation parameter is only available when theCalculate Tax on Advance Payments parameter is Yes. Tax is only charged foradvance payments that exceed the amount specified.

The Adjust Tax for Deductions (Y/N) parameter controls whether deductions(discount, late payment surcharge, or payment difference) taken at the time ofreceipt/payment of an invoice result in an adjustment to the tax amountrecognized for that invoice.

n If this field is Yes, tax is adjusted to correspond with the payment amountadjustment.

n If this field is No, no tax adjustment is performed. For example, an invoice iscreated with the following details:

Invoice Number ACR19980001

Amount USD 5000.00

Tax code/country USA / 001

Tax amount USD 350.00

Discount available USD 100.00

Due date 12/31/98

In this example the tax amount is calculated on the gross amount of$5,000.00 which includes the discount.

At the time of receipt (assume the invoice was paid before due date), thefollowing transaction is recorded:

Received amount USD 4860.00

Discount USD 100.00

Payment difference USD 40.00

The customer only paid $4860.00, but at the time of the invoice, tax wascalculated on the total gross amount ($5000.00). This means tax wascalculated on an amount $140 (sum of all deductions) greater than the actualsale amount.

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If the Adjust Tax for Deductions field is Yes, a reversal entry is created tooffset the entry that was recorded at the time the invoice was created.

The Ledger Account for Deductions by (Tax Code/Customer Supplier Group)parameter controls whether ledger accounts for discounts, late paymentsurcharges, and payment differences are defined by tax code orcustomer/supplier group.

n The Tax Code option is only available when the Adjust Tax for Deductionsparameter is Yes.

n If so, use the Posting Data by Tax Codes session to specify the correctaccounts.

n If not, use the Ledger Accounts by Business Partner Groups session tospecify the correct accounts.

Sales Order Parameters (tdsls4100m000)

The Apply Tax to Installments (Y/N) parameter indicates whether tax can becharged on installments.

n If it is Yes, tax is charged on the instalment amount and then later deductedfrom the total tax amount when the goods are invoiced.

n If it is No, no tax is charged until the goods are invoiced.

Financial Integration Parameters (tdsls6100m000)

The Date for Tax Rate (Invoice/Order) parameter controls whether the order dateor invoice date is used for tax calculation. The invoice date is only used when theorder has been invoiced. Up until that point the order date is used regardless ofthe value of this parameter.

Tax related master data

Maintain Chart of Accounts (tfgld0108m000)

The Default Tax Code field associates a specific tax code with a particular ledgeraccount.

n Whenever the ledger account is referenced in a journal entry, the default taxcode is automatically filled.

n This is an optional field.

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Posting data by tax code

The Maintain Posting Data by Tax Code (tfcmg0150m000) session is onlyaccessible if the Ledger Account for Deductions by parameter is Tax Code in theMaintain CMG Parameters session. If so, ledger accounts for discounts, latepayment surcharges, and payment differences are defined by tax code.

Items

The Tax Code field contains the default tax code on any transactions for therelated item.

Tax processing sessions

Allocate tax on matched purchase invoices

Use the Maintain Tax Transactions (tfacp1112s000) session to allocate taxamounts among multiple tax codes in the case where the invoice is matched toorders and the level of tax calculation is Transaction Line. The purchase invoiceheader must reference the tax code defined as Tax Code To Be Specified in theACP Parameters in order to start the Tax Transactions session.

Change tax amounts and accounts on purchase invoice

Use the Non-Singular Tax Codes by Line (tgld1109s000) session to change taxrates and amounts, and tax accounts and dimensions for purchase invoices. Whenyou calculate tax at the transaction line level for cost invoices, enter Ctrl D in theLedger Account field to default to the same account and dimensions used on theinvoice line.

Tax analysis reports

Display tax analysis

The Display Tax Analysis (tfgld1520m000) session displays tax information bydocument line for a combination of Country, Tax Code, and Year.

Print tax analysis

The Print Tax Analysis (tfgld1420m000) session prints tax information for arange of tax codes, tax periods, or transactions, in addition to various otherselection criteria.

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Print tax analysis (suppliers or customers)

The Print Tax Analysis, Suppliers (tfgld1430m000) and Print Tax Analysis,Customers (tfgld1431m000) sessions print a summary or detailed report for arange of tax codes, periods, and transaction types.

Print yearly tax report (suppliers or customers)

The Print Yearly Tax Report, Suppliers (tfgld1432m000) and Print Yearly TaxReport, Customers (tfgld1433m000) sessions print tax information for a range ofcountries, suppliers/customers, and tax numbers, subject to a minimum amount.

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Tax User Guide

3-1

Destination sales tax features include the following:

n Tax authoritiesn Tax exemptions by customer and tax authorityn Print tax summary by authority on orders and invoicesn Recalculation of tax on orders after change of addressn Expense sales tax on purchasesn Multiple levels on shifted tax codesn Mass addition of tax rates for a tax authority and effective date on all tax

codes

OverviewDestination sales tax adds additional features to the foundation of basic taxhandling. Tax calculation is unchanged, but tax code defaults, tax accounts, andtax reporting are impacted by the additional functionality.

3 Destination sales tax

Destination sales tax

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Create Tax Codes

Define Tax CodeDefaults




Create TaxAuthority Groups

Create TaxAuthorites

Figure 7, Destination tax flow


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3-3

Destination sales tax tables

Tax authority groups

Use the Maintain Tax Authority Group Codes (tcmcs1140m000) session toidentify the type of tax authorities for which tax is collected. The tax authoritygroups are used for data selection and to sort tax analysis reports, so they must becreated to correspond with the desired breakdown of information for thesereports. For example, if information is desired by state, tax authority groups mustcorrespond with states.

Figure 8, Maintain Tax Authority Group Codes


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Tax authority codes

Use the Maintain Tax Authority Codes (tcmcs1137m000) session to identifyspecific tax authorities and assign them to a tax authority group. Tax authoritiesare used for data selection and to sort tax analysis reports, as well as for massupdate of tax rates and summarization of tax amounts on orders and invoices.

Figure 9, Maintain Tax Authority Codes (tcmcs1137m000)

Tax authorities have limited usability when the Tax provider interface isactivated.

Tax codes by country

Tax authority

In addition to the data maintained for basic tax handling, a tax authority can bespecified on each tax code or tax code level for destination sales tax in the TaxCodes by Country (tcmcs0136m000) session. This is used for reporting summaryinformation on external documents when indicated by the related country. It isalso used for data selection and to sort reports in the General Ledger TaxAnalysis.

NOTE


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Purchase expense tax

An expense tax indicator is also available at both the singular and non-singularlevels. When this field is Yes, the Purchase Tax Account becomes an interimaccount used only for registration of matched purchase invoices. Amounts postedto this account during registration are re-classed during approval to the accounton the purchase order line. The account is not used at all for miscellaneouspurchase invoices that post tax amounts directly to the purchase account.

Tax code defaults

Tax codes default according to the mapping defined in the Tables for DestinationSales Tax when the Destination Sales Tax parameter has been activated. Thegeneral default is derived from the Tax Codes by Postal Code session. The postalcode of the delivery address determines the appropriate tax code in this case.This default can be overridden by the Exceptions for Taxes or Exceptions by TaxLocation. If no defaults are defined for a particular location, the Item Codeprovides a default tax code.


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Tax codes by postal code

Use the Tax Codes by Postal Code (tcmcs1136m000) session to assign tax codesto ranges of postal codes with the user-defined From and the To determined byBaan based on the next From code. The tax codes assigned here are used unlessexceptions are defined to override them.

Figure 10, Maintain Tax Codes by Postal Code (tcmcs1136m000)

Postal codes do not need to equate to actual zip codes (and it is probably easier toset up if they do not). Any code can be used as long it corresponds to those codesdefined in the delivery addresses of orders.

NOTE


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Exceptions for taxes

Use the Maintain Exceptions for Taxes – Sales (tcmcs1138m000) and MaintainExceptions for Taxes – Purchases (tcmcs1146m000) sessions to define specifictax exceptions by customer/supplier, item, project, etc. Exceptions defined in thissession override the data defined in the Tax Codes by Postal Code session.

Figure 11, Maintain Exceptions for Taxes (tcmcs1138m000)


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Figure 12, maintain Exceptions for Taxes - Purchase 9tcmcs1146m000)


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Exceptions by tax location

Use the Exceptions by Tax Location (tcmcs1139m000) session to defineadditional exceptions by origin and postal address postal codes. Exceptionsdefined in this session override the data defined in the Tax Codes by Postal Codesession.

Figure 13, Maintain Exceptions by Tax Location (tcmcs1139m000)

Tax code default derivation logic

The procedure that is used to derive default tax codes in the destination sales taxenvironment is as follows:

Derivation of Ship-to Postal Code

In general, the tax code is derived based on the postal code of the destination(delivery) address. The hierarchy that is used to determine the appropriateaddress is shown below for the various modules of Baan.


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For Sales Order Control (SLS), Service Order Control (SMA), WarehouseControl (WOC), and Transport Control (TOC):

1 Postal code from delivery address

2 Postal code from customer address

For Purchase Order Control (PUR) and Transport Fuel Control (TFC):

1 Postal code from delivery address

2 Postal code from own warehouse address

3 Postal code from own address from company

If no exceptions apply, the tax code assigned to the postal code defaults on theorder, quote, contract, and so on.

There are two methods that can be used to define exceptions:

n Exceptions for taxes

n Exceptions by location

Exceptions for taxes take priority over exceptions by location. If neither type ofexception exists, the postal code alone determines the default tax code. If thereare no exceptions and no tax code assigned to the postal code, tax code of theitem is used as a last resort.


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Exceptions for taxes

Exceptions for taxes can be defined for country, customer/supplier, item, itemgroup and postal code. Use the Maintain Exceptions for Taxes - Sales(tcmcs1138m000) or Maintain Exceptions for Taxes -Purchase(tcmcs1146m000) sessions to define these exceptions.

Baan searches for defined exceptions, using country code and the combinationsof other options, in the following order priority:

1 Country, customer/supplier, item, item group and postal code2 Country, customer/supplier, item, postal code3 Country, customer/supplier, item, item group4 Country, customer/supplier, item5 Country, customer/supplier, item group, postal code6 Country, customer/supplier, item group7 Country, customer/supplier, postal code8 Country, customer/supplier9 Country, item, item group, postal code10 Country, item, postal code11 Country, item, item group12 Country, item13 Country, item group, postal code14 Country, item group15 Country, postal code16 Country

Exceptions by locations

Exceptions by location can be defined for a combination of origin postal codeand postal address postal code

Baan searches for defined exceptions, using country code and destination postalcode along with the combinations, in the following order priority:

1 Origin postal code and postal address postal code2 Origin postal code3 Postal address postal code


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Tax exemptions

Reasons for tax exemptions

Use the Maintain Reasons for Tax Exemptions (tcmcsl141m000) session todefine reason codes that will be used for tax exemptions.

Figure 14, Maintain Reasons for Tax Exemptions (tcmcs1141m000)


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Tax exemptions by customer and tax authority

Use the Maintain Tax Exemptions for Customer by Tax Authority(tcmcsl142m000) session to define a Customer as exempt in a given taxauthority. Any tax amounts for a customer/tax authority combination defined asexempt will automatically be calculated as zero. The tax authority is taken fromthe tax code referenced on the order or invoice.

Figure 15, Maintain Tax Exemptions for Customer by Tax Authority (tcmcs1142m000)

Maintain Countries (tcmcs0110m000)

The Print Tax by Tax Authority field controls whether or not a summary box isprinted at the footer of orders and invoices to show the breakdown of taxamounts by tax authority.

The Print Tax Exemptions field controls whether or not a summary box is printedat the footer of orders and invoices to show tax exemption data.

If both the Print Tax Authority and Print Tax Exemptions fields are Yes, both areprinted in a single summary box.

Print Tax Exemptions is not available if the Tax provider interface is activated.NOTE


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Destination sales tax parameters

COM Parameters (tccom0000m000)

The Destination Sales Tax Applicable parameter controls whether destinationsales tax features are used.

n If this parameter is activated, tax codes default according to the mappingsdefined in the Tax Codes by Postal Codes, Exceptions for Taxes, Exceptionsby Tax Location sessions.

n If not, tax codes default from the Item Code.

ACP Parameters (tfacp0100m000)

The ledger account and dimensions specified in the Tax varianceaccount/dimensions field are used in the event of a discrepancy in tax amountsduring the approval of matched purchase invoices. This procedure is described indetail in another section of this document.


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Destination sales tax processing

Test tax structure

Use the Test Tax Structure (tcmcs1199m000) session to verify that the tax codedefaults have been defined correctly.

Figure 16, Test Tax Structure (tcmcs1199m000)


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Change tax rates by tax authority

Use the Change Tax Rates by Tax Authority (tcmcsl201m000) session toperform a mass change of tax rates for various tax authority codes and effectivedates.

Figure 17, Change Tax Rates by Tax Authority (tcmcs1201m000)

Purchase expense taxPurchase Expense Tax applies to Accounts Payable invoices only. It refers to thepractice of expensing tax amounts charged on a purchase as part of the expenseof that purchase, rather than charging it to a tax account. For instance officesupplies purchased for $100 with an applicable tax of $7.50 would result in anexpense of $107.50 to the Office Supplies account under the Purchase ExpenseTax method.

Purchase expense tax is triggered by the use of a tax code with the Expense Taxfield set to Yes. Both matched and cost (miscellaneous) purchase invoices canuse the Purchase Expense Tax feature, although the circumstances that trigger thefunctionality are slightly different. The following sections will explain the use ofpurchase expense tax in various scenarios.


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Miscellaneous purchase invoices

When a miscellaneous invoice is set to calculate tax at the transaction line leveland the Expense Purchase Tax field is Yes for the selected tax code, tax amountsautomatically post to the same account as the purchase invoice line. This accountcan be changed in the same way as non-expensed tax code are by zooming to theMaintain Non-Singular Tax Codes by Line (tfgld1109s000) session. When thetax code is not expensed, the tax account is the same as the purchase tax accounton the tax code.

Miscellaneous purchase invoices (Match with Orders is No) can be entered withMaintain Purchase Invoices (tfacp1110s000) and Maintain Purchase InvoiceTransactions (tfacp1120s000) sessions.

Matched purchase invoices

When a matched purchase invoice is set to calculate tax at the invoice headerlevel and the entered tax code is Yes for Expense Purchase Tax, the tax amountis re-classed in the approval transaction. Tax posts to the Interim Tax Accountfrom the tax code initially. In the case where the item matched is from the itemgroup of cost items to be specified, the tax amount is re-classed to the accountspecified for the item. Any variances between the tax amount originally recordedat registration and the tax amount calculated based on the matched purchasereceipt lines is posted to a variance account specified in the ACP parameters.

Reports are provided to show the amounts that are still in the interim tax account,as well as amounts that have been re-classed (this includes variance information).

Non-singular tax codes by line

Use the Non-Singular Tax Codes by Line (tfgld1109s000) session to modify taxamounts and accounts for purchase invoices.

Tax ledger accounts

Use the Tax Ledger Accounts (tfcmg1139s000) session to change the taxaccounts and amounts for standing orders (maintained in the Standing Orders(tfcmg1110m000) session) that have a cost type. The tax account and dimensionsdefault to the same as those used on the standing order line when you enter CtrlD in the Account field.


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Purchase tax reports

Print registered purchase invoices

Use the Print Registered Purchase Invoices (tfacp1433m000) session to printpurchase invoices that have been registered or matched, but not yet approved.Expensed tax amounts are displayed along with other invoice data.

Print Interim Purchase Tax Account Transactions

Use the Print Interim Purchase Tax Account Transactions (tfacp2435m000)session to print amounts in the Interim Purchase Tax account for the invoices thathave been registered or matched but not yet approved.

Print expenses purchase tax data

Use the Print Expenses Purchase Tax Data (tfacp2436m000) session to verify theamounts and accounts used in the re-class for the purchase invoices that havebeen matched or approved.

Destination tax reporting

Print tax analysis

Tax authority code and group data can be used as the selection criteria for thisreport and is also included with other tax data on the printed report.

Print tax summary by tax authorities

Use the Print Tax Summary by Tax Authorities (tfgld8401m000) session to printtax totals by tax authority and authority group.

Print tax exemption analysis

Use the Print Tax Exemption Analysis (tfgld8410m000) session to print detailedtax exemption information by tax code, tax authority, or authority group.

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An interface was developed between Baan and two third-party tax providers,TAXWARE’s SALES/USE Tax System or Vertex's Quantum for Sales and UseTax for United States (U.S.) and Canadian taxes. The Tax provider interface isoptional and if used, the Tax Provider performs tax computations and provide taxregisters for auditing and tax reporting purposes.

The tax provider interface features include the following features:

n Online API used for communication between BAAN and Tax Provider foraddress verification, jurisdiction checking and calculation of tax amounts.

n Utilities that are used to convert existing addresses to the correct format andverification of jurisdiction

n User defined product category information passed to Tax Provider for correctrate determination

n Line based tax calculation

4 Tax provider interface

Tax provider interface

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OverviewThe Tax provider interface starts Vertex or TAXWARE for all tax calculations,rather than using the Baan tax rates. Relevant information is passed from Baanrelated to addresses, product categories, and customer/supplier, and theappropriate tax information is passed back from the Tax Provider. The generalflow for the Tax provider interface is illustrated in Figure 18:

Create Tax Codes

Define Tax CodeDefaults




Create TaxAuthority Groups

Create TaxAuthorites Create Prduct

Categories

Define Mapping ofProduct Category

Matrix

Register Countriesfor Tax Provider

Conver Addressesto Proper Format

Verify GEO Codes

Figure 18, Tax Provider flow

For Baan IV, the interface is not integrated with Baan Project or BaanTransportation, but all other Baan modules use the interface. The ability toupdate the Tax Provider tax register is provided from Sales invoices. This is notavailable for purchase invoices or finance transactions.


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The interface consists of the following components, that are described in moredetail later in this document:

n Tax Provider parametersn Tables for Tax Providern Address verification for Tax Providern Tax calculations for Tax Providern Tax impact on sales installments for Tax Providern Conversion considerations for Tax Providern Technical implementation considerations

When the tax-provider interface is activated, the following functionality iscarried out by the Tax Provider and is therefore not available in Baan:

n Tax exemption processingn Multilevel tax processingn Tax-rate selection and tax computation

An overview of the integration that the Tax provider interface provides forcommunication between Baan and the Tax Provider is illustrated in Figure 19.


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TAX ProviderBAAN IVc

citystatezip codecity limits (vertex only)

STATIC DATAGEO code

GEO code (Computed from the tax provider. Storedwith customer and order address information.

Static data for tax calculations: GEO code, city, state,zip code, and product category.

STATIC DATA

CountryCustomerGroupItem GroupItemPoint of originPoint of destination

VAT/TAXCode

TAXRates

TAXMethodology

DYNAMIC DATA

Tax calculations within Distribution, Finance, Service, andTransportation.

Update customer/supplier order balances for totalcost of sale or purchase, including tax.

Compute applicable sales tax on documents such asorder acknowledgements.

When transactions are finalized and bills are paid,applicable sales tax is computed and stored. Taxhistory available for reporting.

DYNAMIC DATA

Tax Calculations

Update Tax Register.Audit trail of tax history used forreporting purposes

Figure 19, Baan and Tax Provider communication


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Static data

In Baan, a set of static data (country, customer, group, item group, item, point oforigin, point of destination) determine the appropriate tax jurisdiction. The taxproviders -- TAXWARE and Vertex -- differ with regard to the informationneeded to identify a specific taxing jurisdiction. For TAXWARE users; the city,state and zip code for US addresses or city, province and postal code forCanadian Addresses, and a GEO or geography code represents a specific taxjurisdiction. For Vertex users, the GEO code and a city limits flag identifies aspecific taxing jurisdiction. Data (city, state, zip code, GEO code, and city limits(vertex only)) exists in Baan that uniquely distinguishes taxing jurisdictions. Thismapping provides the ability to perform tax computations outside of Baan. Thetax provider interface is only applicable for companies that need to calculate taxfor US and Canadian customers and suppliers.

In some cases, the exact jurisdiction can not be automatically determined basedon the city, state, and zip code due to overlapping jurisdictions. Baan provides amechanism to select the appropriate jurisdiction from a list of availablecandidates. When the tax jurisdiction is determined, the GEO code, that uniquelyidentifies the taxing jurisdiction, is stored in Baan. This code is stored andassociated with customer and order address information.

Dynamic data

After the static data has been defined and the GEO codes have been stored inBaan, tax calculations can be performed through the Tax Provider interface. Taxcomputation is necessary for:

n Updating customer/supplier order balances for the total cost of the sale orpurchase, including tax.

n Compute applicable sales tax for documents such as orderacknowledgements.

Baan passes a GEO code and other required parameters to the Tax Provider. TheTax Provider determines the tax jurisdiction based on the ship-from, ship-to,point of origin, and point of acceptance and perform the necessary computation.The results is sent back to Baan.

Another function of the Tax Provider is the maintenance of a tax register that isused as an archiving tool for tax history. Data is passed from Baan to the TaxProvider to update this history. This occurs simultaneously with the data transferof information for tax computations.


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Tax Provider tablesInformation such as registered countries, product categories, Point of TitlePassage, and Sales/Service/Rental Use Indicator are maintained in BAAN IV toprovide flexibility when you interface to a Tax Provider.

Maintain Countries (tcmcs0110m000)

The Print Line Tax field is only accessible when the Tax Provider interface isactivated.

Country Tax Provider register

Use the Maintain Country Tax Provider Register (tccoml140m000) session todefine the countries in BAAN for which US and Canadian address verification isto be performed. Multiple BAAN countries are allowed for each address type.Any countries not defined here are considered as foreign by the Tax Providerinterface.

Countries must be registered for the tax provider interface. Registering a countryfor the tax provider interface indicates that the taxes for this country arecomputed by 3rd party tax provider. Moreover, it indicates the type of addressvalidation to be performed and the labels that appear when maintaining addressinformation. United States addresses prompt for city, state, and zip code.Canadian addresses prompt for city, province, and postal code.


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Figure 20, Maintain Country Tax Provider Resister (tccom1140m000)

The Country Code field is the code by which the country is recognized inBAAN IV.

The Address Type field is the type of address that is associated with theregistered country.

− United States - The address is in the United States format.

− Canada - The address is in the Canadian format.


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Product categories

Use the Maintain Product Categories (tccoml138m000) session to define validproduct categories for use with the tax provider interface. Product categoriesenable the Tax Provider to compute tax based on the type of products that arebought or sold. For example, it is common in the United States for materials tobe taxable and labor to be non-taxable. There is no conversion of productcategories when data passes to the Tax Provider so the product categories definedin Baan must be identical to those defined in the external tax provider.

Figure 21, Maintain Product Categories (tccom1138m000)

The Product Category field is the code that identifies a specific product categorythat classifies different types of products bought or sold.


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Product category tax matrix

Use the Maintain Product Category Tax Matrix (tccoml139m000) session toassociate a specific product category with a range of items, item groups, contracttypes, GL accounts, and effectivity dates. The product categories must matchthose that are used in the Quantum Tax Decision Maker (TDM) or TAXWARESTEP systems.

Note: In order to change product category matrix information, you need to deletethe record and add a new one.

For tax calculations, the product category is determined based on the item boughtor sold, the contract type for service contracts, and the GL account specified forFinance transactions. For item-based transactions a series of lookups areperformed. The product category tax matrix is searched by effectivity date anditem code. If no product category is specified for the item and date, the productcategory is searched again using the item group associated to the item. ForVertex users, if no product category is found for either the item or the item’s itemgroup and effectivity date, the item code is passed to the Tax Provider as theproduct category. For TAXWARE users, the product category is blank in thiscase.

Figure 22, Maintain Product Category Tax Matrix (tccom1139m000)

NOTE


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Display/print product categories

Use the Display Product Categories (tccoml539m000) and Print ProductCategories (tccoml438m000) sessions to review and print the product categoryinformation.

Display/print product category tax matrix

Use the Display Product Category Tax Matrix (tccoml538m000) and PrintProduct Category Tax Matrix (tccoml439m000) sessions to review and print themapping of product categories to the various Baan data types.

Contract Types (tssma2124m000)

Use the Sales/Service/Rental Indicator field to define the type of tax processingrequired for service contracts when the Tax Provider is activated.

Tax Provider parametersParameters indicate whether the tax provider interface is used and the processingrequired.

Tax Provider parameters

Use the Tax Provider Parameters (tccoml150m000) session to activate the TaxProvider Interface and define the basic settings for the environment. Set theUsing Tax Provider flag to Yes in this session to automatically start the TaxProvider Initialization Process (tccom1151s000) session to convert multi-leveltax codes to singular. In addition, the Net/Gross field must be set to net and notallow input.


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Figure 23, maintain Tax Provider Parameters (tccom6150m000)

Figure 24, Maintain Tax Provider Parameters (Activation Warning)

Figure 25, Maintain Tax Provide Parameters (Activation Confirmation)


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The Tax Provider parameter indicates whether or not tax computations areperformed through an external tax provider.

n If this field is Yes, BAAN IV uses an external tax provider to perform taxcomputations and provide tax registers for auditing and tax reportingpurposes.

n If this field is No, tax computations are performed with internal BAAN IVfunctionality.

The Point of Title Passage (only used by TAXWARE) is the default point atwhich the title passes, either origin or destination, that determine the taxingjurisdiction. Allowed values are:

n Point of Origin: The address from which the goods are shipped.

n Point of Destination: The address where the goods are delivered.

The Warn if Tax on ACP Invoices parameter indicates whether or not a warningmessage is issued when tax is computed for sales invoices.

n If this field is Yes and you use a tax provider, a warning message displaysand you can enter a separate tax code for tracking purposes because the taxprovider tax register is not updated for Finance transactions.

n If this field is No, no warning message is issued when tax is computed forsales invoices.

The Maintain Item Ranges parameter indicates whether or not item code rangescan be used to define product category tax matrices. These matrices are used toassociate product categories with selective information such as items, itemgroups, contract types, ledger accounts, and date ranges.

n If this field is Yes, a range of item codes can be associated to a specificproduct category/relation type combination.

n If this field is No, only one item code can be associated to a specific productcategory/relation type combination.

The Maintain Item Group Ranges parameter indicates whether or not item groupranges can be used to define product category tax matrices. These matrices areused to associate product categories with selective information such as items,item groups, contract types, ledger accounts, and date ranges.

n If this field is Yes, a range of item groups can be associated to a specificproduct category/relation type combination.

n If this field is No, only one item group can be associated to a specific productcategory/relation type combination.


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The Maintain Account Number Ranges parameter indicates whether or not arange of accounts can be used to define product category tax matrices. Thesematrices are used to associate product categories with selective information suchas items, item groups, contract types, ledger accounts, and date ranges.

n If this field is Yes, a range of accounts can be associated to a specific productcategory/relation type combination.

n If this field is No, only one account number can be associated to a specificproduct category/relation type combination.

The Maintain Contract Type Range parameter indicates whether or not a range ofcontract types can be used to define product category tax matrices. Thesematrices are used to associate product categories with selective information suchas items, item groups, contract types, ledger accounts, and date ranges.

n If this field is Yes, a range of contract types can be associated to a specificproduct category/relation type combination.

n If this field is No, only one contract type can be associated to a specificproduct category/relation type combination

The Maintain Effectivity/Expiration Date Range parameter indicates whether ornot an effectivity/expiration date range can be used to define product categorytax matrices. These matrices are used to associate product categories withselective information such as items, item groups, contract types, ledger accounts,and date ranges.

n If this field is Yes, effectivity/expiration date ranges can be specified for aparticular product category/relation type combination.

n If this field is No, Baan assumes that product category tax matrices arealways effective.


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API parameters

Use the Maintain API Parameters (tcapi1136m000) session to define which TaxProvider partner is used.

Figure 26, Maintain API Parameters (tcapi1136m000)

The Interface Provider field is the available interface providers for the specifiedAPI type.

n TAXWARE’s SALES/USE Tax System - BAAN IV will interface toTAXWARE’s SALES/USE Tax System.

n Quantum for Sales/Use Tax - BAAN IV will interface to Quantum forSales/Use Tax.

n None - No external tax provider interface is used.

The Interface Used field indicates whether or not the specified API interface isbeing used by BAAN IV.

n If this field is Yes, BAAN IV will interface with the selected provider for thespecified API type.

n If this field is No, no interface for the specified API type is active.


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Tax Provider setup

Tax jurisdiction

Jurisdiction verification utility

Use the Jurisdiction Verification Utility (tccoml910m000) session to assign GEOcodes to your addresses. When the Update field is No, what-if reports aregenerated. Reports provided show the GEO codes to be assigned and any invalidaddresses. When the Update field is Yes, GEO codes are assigned to youraddresses.

If there are multiple jurisdictions available for the same city, state/province, andzip/postal code, the first one on the list is selected. An exception to this occurs ifthere is already a GEO code assigned to the address and it is one of the availablechoices. In this case, the existing GEO code is not overridden. In either case, theavailable choices appear on the verification utility report, and can be manuallychanged.

Figure 27, Address Jurisdiction Verification Utility (tccom6210m000)

NOTE


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The Table field is the first table in the range of tables to be included in thejurisdiction verification. All addresses stored in the selected tables are checked,and when possible, the correct GEO Code for the indicated jurisdiction isretrieved from the Tax Provider and saved in the address record.

Use the Update GEO Code Jurisdiction field to access a utility option to updatethe database.

n If this field is Yes, valid jurisdiction changes that are reported by the utilityare updated in the database.

n If this field is No, the utility runs in report-only mode without affecting theexisting jurisdiction associations that are stored in the database.

This utility can be used as a periodic verification tool, or as a mechanism toinitially associate tax jurisdictions with existing address information. The TaxProvider parameter must be Yes in order to run this session. You can define thisparameter in the Maintain Tax Provider Parameters (tccom6150m000) session.

GEO code verificationFor each table containing address information in the selected range, the utilityprocedurally executes the following:

n Processing criteria: GEO code jurisdiction is only associated to address datathat correlates to countries registered in the Maintain Country Tax ProviderRegister (tccom7140m000) session.

n Format Verification: Address information must be in the correct format inorder to parse the address information for input into the Tax Provider. Runthe Address Format Conversion Utility (tccom6211m000) session to verifythe existing address data formats. In addition to format structure, verificationof valid state codes such as CA (California) or province codes such as QB(Quebec) is also performed by the utility. For Canadian addresses, there is anadditional verification for valid province/postal code association (the first twocharacters of the postal code uniquely correspond to a specific province).

Based on the address information, the Tax Provider attempts to validate theexisting tax jurisdiction association.

One of the following cases will occurs:

1 No jurisdiction - Address information does not correspond to a validjurisdiction in the Tax Provider (error message reported by utility).

2 Unique jurisdiction - The returned GEO code is compared to the existingjurisdiction that is associated to the address information. The utility changesthe jurisdiction association only if it is different.


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3 Multiple jurisdictions - More than one jurisdiction can be valid for a specificaddress. If multiple GEO codes are valid, the utility changes the jurisdictionto the first GEO code passed back from the Tax Provider only if the existingassociation is not valid.

If you use the tax provider Vertex, all modified jurisdictions default to be insidecity limits. If you use TAXWARE, The Inside City Limits field does not apply.The GEO code designates whether the address is inside or outside the city limits.

The utility can be run for a specific range of addresses that exist in BAAN IV.You can also run the utility without updating the existing data. Reports aregenerated to show modified GEO code associations and address data that was notprocessed due to errors.

Select tax jurisdiction

Use the Select Tax Jurisdiction (tccoml900s000) session to change the GEO codeassignment for an address. You can only change addresses with multiplejurisdictions (for example, counties or transit districts) in the same city and zipcode, such as Atlanta, GA and Broomfield, CO.

Addresses

Address labels are shown for each address type as follows:

Address Type Line 3 Line 4

US City, State Zip Code

Canadian City, Province Postal Code

Not defined City

Additional fields of GEO code and Inside City Limits have been added for usewith the Tax Provider Interface.

A warning message that order balances must be recalculated appears when theGEO code is changed (except for Maintain Prospects).


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The following sessions include address data for the Tax Provider Interface:

n Company Data (tccom0100m000)n Warehouses (tcmcs0103m000)n Customers (tccom1101m000)n Delivery Addresses (tccom1102m000)n Customer Postal Addresses (tccom1103m000)n Prospects (tccom1110m000)n Suppliers (tccom2101m000)n Supplier Postal Addresses (tccom2103m0000.n Bank Addresses (tcmcs0120m000)n Factoring Companies (tcmcs0125m000)n Credit Insurance Companies (tcmcs0109m000)n Sales Contracts (tdsls3101m000)n Specific Delivery Address (tdsls3103s000)n Specific Postal Address (tdsls3104s000)n Quotations (tdsls1101m000)n Specific Delivery Address (tdsls1103s000)n Specific Postal Address (tdsls1104s000)n Sales Orders (tdsls4101m000)n Specific Delivery Address (tdsls4103s000)n Specific Postal Address (tdsls4104s000)n Locations (tssma1110m000)n Specific Work Site Address (tssma3102s400)n Specific Postal Address (tssma3102s300)n Contracts (tssma2120m000)n Service Orders (tssma3101m000)n Service Orders (Telephone Screen) (tssma3140m000)n Report Service Orders Completed (tssma3142m000)n Specific Work Site Address (tssma3102s200)n Specific Postal Address (tssma3102s100)n Service Orders (Planning) (tssma3141m000)n Purchase Contracts (tdpur3101m000)n Specific Delivery Address (tdpur3103s000)n Specific Postal Address (tdpur3104s000)n Purchase Orders (tdpur4101m000)n Specific Delivery Address (tdpur4103s000)n Specific Postal Address (tdpur4104s000)n One-Time Customer Address (tfacr1102s000)n One-Time Supplier Address (tfacp1102s000)n One-Time Supplier Address (tfcmg1101s000)


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Address verification for tax provider

US and Canadian addresses, determined based on the country code, must beentered in a predefined format to enable the Tax Provider to identify a taxingjurisdiction. The city, state, and ZIP code for U.S. addresses and city, province,and postal code for Canadian addresses must be entered in the following format:

US Canada

Address Line 3 City, ST City, PR

Address Line 4 Zip Code Postal Code

Figure 28, Maintain Customers (tcmcs1101m000)

Figure 29 the city and state or province is entered on the third address line andthe ZIP or postal code is entered on the fourth. The state or province must beentered in abbreviated form. If the state is spelled out, the system automaticallyconverts it to the abbreviated form. For example if California is entered, it isautomatically converted to CA.

When you maintain address information, the city, state/ province, and ZIP/postalcode are verified to ensure that a valid combination was entered. The messageInvalid province/postal code combination is displayed if an invalid addresscombination is entered. Activate option [1] to invoke the jurisdiction verificationand selection process for existing addresses.


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The Tax Provider assigns a GEO code to each address to uniquely identify ajurisdiction. The Tax Provider determines the GEO code based upon the addressinformation entered and the county and city limits selected. The format of theGEO code varies by tax provider. TAXWARE uses a two-digit GEO code; theGEO code together with the city, state, and ZIP code, identifies the taxingjurisdiction. Quantum uses a nine-digit GEO code that consists of a two-digitstate code, three-digit county code, and a four-digit city code. A tenth digitidentifies whether the jurisdiction is inside or outside of the city limits.

In some cases the city, state, and zip code combination does not uniquely identifya jurisdiction. This can occur because the combination can reside in multiplecounties or can be either inside or outside of the city limits. If this situationoccurs, Baan automatically zooms to the Select Tax Jurisdiction(tccom7250s000) session where you can select the appropriate jurisdiction basedon the county, and for TAXWARE only, the city limits flag. For Quantum users,the Inside City Limits (Y/N) field on the address indicates whether the it is insideor outside of the city limits.

Address format conversion utility

Use the Address Format Conversion Utility (tccoml911m000) session to convertaddress and tax code information to the correct format for the tax providerinterface.

Customers or suppliers for the countries defined as US or Canadian are includedin the conversion of addresses. If an address has multiple possible jurisdictions,the first occurrence is selected. Examples of this are Broomfield, CO 80020 and80021 and Atlanta, GA 30316 and 30317. For more examples refer to the VertexTax Rate Guide or the TAXWARE SALES/USE Tax System User Guide.

The following formats for lines 3 and 4 of the address are recognized forconversion in Baan IV:

Line 3 Line 4

1 City, State/Province Zip

2 City State/Province Zip


When the Convert field is No, what-if reports are generated. Reports providedshow any addresses to be converted and any invalid addresses. When the Convertfield is Yes, addresses are converted.

Only the addresses for countries with address type of US or Canadian areconverted.

NOTE:


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Figure 29, Address Format Conversion Utility (tccom6211m000)

The Table from field is the first table in the range of tables to be included in theverification of address formats. All addresses stored in the selected tables arechecked, and when possible, converted to the correct format for use with the TaxProvider Interface.

The Table to field is the last table in the range of tables to be included in theverification of address formats. All addresses stored in the selected tables arechecked, and when possible, converted to the correct format for use with the TaxProvider Interface.

Use the Convert Address Format field to access a utility option to update thedatabase.

n If this field is Yes, valid address information that is reported by the utilitywill be converted to the new format in the database.

n If this field is No, the utility will run in report-only mode without affectingthe existing address information stored in the database.


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The utility assumes that existing address data has been input into BAAN IV inone of three format types. Only these formats are recognized by the utility forconversion. The three formats that will be converted are:

Type Line 1 of Address Line 2 of Address

1 AAA, BBB CCC

2 AAA BBB CCC

3 AAA, BBB CCC

Legend AAA City

BBB State (for US address) or Province (for Canadianaddress)

CCC Zip Code (for US address) or Postal Code (for Canadianaddress)

These formats are converted to:

n Line 1: AAA, BBBn Line 2: CCC

The utility can be run for a specific range of addresses that exist in BAAN IV.You can also use the utility without updating the existing data. Reports aregenerated to show the converted address data and address data that was notconverted due to errors.


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Tax Provider exception setup

Baan companies, customers, product categories and their related tax exceptionsor exemptions must be entered in the Quantum TDM or TAXWARE STEPsystem. This information determines the correct tax amounts to be passed fromQuantum or TAXWARE to Baan.

Baan Data Element Vertex TDM Data Element TAXWARE STEP DataElement

Finance Company Company Company ID

-- Division (must be blank) --

Customer Customer Customer ID

Supplier Customer Customer ID

Financial Business PartnerGroup

Customer Class --

Product Category (mappedthrough item, item group, etc)

Product Category/ID Product Code

Tax Provider tax processing

Tax calculations for Tax Provider

BAAN IV computes tax on a line basis when interfaced to a tax provider. This isnecessary to accommodate product taxability. The Tax Provider computes theapplicable tax amount based on the taxing jurisdiction, taxable amount, ordertype, such as sales or service, and the type of product that is sold or purchased.The Tax Provider determines the taxing jurisdiction based upon the ship-from,ship-to, point of order acceptance, and point of order origin (TAXWARE only)addresses that apply for the transaction.

The following table indicates by order type, for BAAN Service and BAANDistribution, the hierarchy process that identifies the ship-from, ship-to, point oforder acceptance, and point of origin addresses:


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Type ofOrder

Ship-from Ship-to Point of OrderAcceptance

Point of OrderOrigin

SLS order

SLS quote

Warehouse(shippable item)

Company (non-ship. item)

Specific deliveryaddress (line)

Delivery addresscode (line)

Specific deliveryaddress (header)

Delivery addresscode (header)

Customer

Company Company

SLSinstallment

Company Specific deliveryaddress (header)


Customer

Company Company

PUR order Supplier Specific deliveryaddress (line)



Company

Specific postaladdress (header)

Postal addresscode (header)

Supplier

Specific postaladdress (header)

Postal addresscode (header)

Supplier

SRVcontract

Company Specific work siteaddress (location)

Delivery addresscode (location’scustomer)

Customer

Company Company

SRV order Warehouse(shippable item)

Company (non-ship. item)



Specific deliveryaddress (order’slocation)

Delivery addresscode (order’slocation)

Customer

Company Company


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The following table indicates, by Finance session, for BAAN Finance, thehierarchy process that identifies the ship-from, ship-to, point of order acceptance,and point of origin addresses:

Financesession



tfacp1110s000

tfacp1112s000

tfacp1120s000

tfacp2110s000

One-time supplieraddress

Supplier

Company One-time supplieraddress

Supplier


Supplier

tfacr1110s000

tfacr1111s000

tfacr2110s000

tfacr4100m000

tfacr4101s000

tfacr5420m000

Company One-timecustomer address

Customer

Company Company

tfcmg1113m000

tfcmg1113s000

tfcmg1120m000

tfcmg1220m000


Supplier

Company One-time supplieraddress

Supplier


Supplier

tfcmg2100s000

tfcmg2108s000

Company (Adv.Receipt)

One-time supplieraddress (Adv.Payment)

Supplier (Adv.Payment)

One-time supplieraddress (Adv.Receipt)

Supplier (Adv.Receipt)

Company (Adv.Payment)





One-time supplieraddress (Adv.Payment)


tfcmg2116s000 Supplier Company Supplier Supplier

tfcmg2117s000 Company Customer Company Company

tfcmg2140s000 Supplier (Adv.Payment)

Company (Other)

Company (Adv.Payment)

Customer (Other)


Company (Other)


Company (Other)


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Financesession



tfcmg4120m000 Pur. Invoice

Customer’sSupplier (Pur.Credit)

Company (Other)

Pur. Invoice

Company (Pur.Credit)

Customer (Other)

Pur. Invoice


Company (Other)

Pur. Invoice


Company (Other)

tfcmg2120s000

tfgld1103s000

tfgld1104s000

tfgld1105s000

tfgld1114s000

tfgld1115s000

tfgld1204s000

tfgld2215m000

Company Company Company Company

The following table shows the values or hierarchy process that determine thevalue, by order type or transaction type, of additional input information used bythe Tax Provider for tax calculations.


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TransactionType

Sales/Service/Rental/PurchaseIndicator

Product Category Point of TitlePassage

SLS Order Sales Item code

Item group

Item code (VERTEX)

Terms of delivery

SLS install Sales Installment item code

Item group

Item code (VERTEX)

Terms of delivery

SRV order Service Item code

Item group

Item code (VERTEX)

Default parameter

SRV contract Contract type Item code

Item group

Item code (VERTEX)

Terms of delivery

PUR order Sales Item code

Item group

Item code (VERTEX)

Terms of delivery

Financetransactions

Sales Ledger Account (if available) Default parameter

When you interface to a tax provider, the tax code determines the GL accountsfor which to cost the tax. In addition, the tax code indicates if the transaction istaxable. A transaction with a blank tax code is considered non-taxable. Taxinformation is stored for tracking and reporting purposes in the tax providerregisters. The register stores information such as the type of transaction,document or invoice number, invoice date, and the amount of tax withheld bytaxing jurisdiction. The tax provider tax register is updated automatically whenyou invoice definitively in BAAN Distribution and BAAN Service. Audit reportsand tax reporting is available from the tax provider vendors.


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Tax summary

The following sessions print tax information obtained from the tax provider,.This information includes tax summary and line tax data if specified for thecountry of the order or invoice:

n Print Sales Contract Acknowledgments (tdsls3405m000)n Print Sales Quotation (tdsls1401m000)n Print Sales Order Acknowledgments (tdsls4401m000)n Print Sales Deliveries (tdsls4431m000)n Print Sales Invoices (tdsls4431m0000)n Print Service Contract Quotations (tssma2451m000)n Print Service Order Invoices (tssma3473m0000)n Print Purchase Contract Acknowledgments (tdpur3405m000)n Print Purchase Orders (tdpur4401m000)n Print Purchase Invoices (tdpur4404m000)

Tax Provider calculation utility

This utility provides data input for the visibility and maintenance of informationprovided by the tax provider interface. The Tax Provider parameter must be Yesin order to run this session. You can define this parameter in the Maintain TaxProvider Parameters (tccom6150m000) session.

Baan Finance does not update the tax-provider tax register as a result of financialtransactions. Use the Tax Provider Calculation Utility (tccom6212m000) sessionto enter the tax amounts for ACR or ACP invoices and journal entry adjustments.


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Figure 30, Tax Provider Calculation Utility (tccom6212m000)

Figure 31, Display Tax Provider Amounts/Rates (tccom6213s000)


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Figure 32, Process Tax Provider Adjustments (tccom6214s000)

The Order Type field indicates the type of order for which sales tax is calculated.This indicator is passed to the Tax Provider to determine the correct taxationrules and rate.

The Customer field indicates the customer or supplier for whom sales tax iscalculated. When the order type is Sales, Service, or Rental, a customer isspecified. When the order type is Purchase, a supplier is specified.

The Service Location field indicates the service location applicable to the servicefor which tax is calculated. This field only applies when the order type is Service.

The delivery address code indicates the delivery address code or warehouse codeused in the calculation of sales tax. When the order type is Sales, Service, orRental, a delivery address code is entered. When the order type is Purchase, awarehouse code is entered.

The Country field indicates the country of the order for which sales tax iscalculated. This defaults from the delivery address code or warehouse code if onehas been provided.


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The City field indicates the city and state/province of the order for which salestax is calculated. This defaults from the delivery address code or warehouse codeif one has been provided. A comma is required after the city name and the stateor province must be entered as a two letter abbreviation.

The ZIP/Postal Code field indicates the zip/postal code of the order for whichsales tax is calculated. This defaults from the delivery address code or warehousecode if one has been provided.

The Product Category field indicates the product category of the order for whichsales tax is calculated.

The Order Quantity field indicates the quantity of products on the order forwhich sales tax is calculated.

The Gross Amount field is the amount of the order for which sales tax iscalculated.

The Transaction Date field is the effective date of the order for which sales tax iscalculated.

The utility has two main functions:

n Display Tax Provider Amounts/Rates (tccom6213s000)

This session displays the component breakdown of the sales tax applied forthe specified jurisdiction in the Tax Provider.

n For US addresses, the total tax rate is broken down into five separate taxauthorities:

− State− County− Local− Secondary County− Secondary Local

n For Canadian addresses, the total tax rate is broken down into two separatetax authorities:

− GST− PST or QST(Quebec)

n Process Tax Provider Adjustments (tccom6214s000)

In this process you can enter miscellaneous adjustment transactions in theexternal tax provider’s tax register.

The primary function of this session is to manually enter tax adjustments intothe tax provider’s tax register. Currently in BAAN IV, tax from Sales,


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Purchasing, and Service are automatically written to the Tax Provider. Taxfrom financial transactions, however, needs to be manually entered into thetax provider’s tax register. The session provides this ability, along with theability to enter any other miscellaneous entries that need to be entered in thetax register.

Based on jurisdiction information, quantity, and amount passed, the sessionreturns default tax rates that can be manually modified before you update thetax register.

Tax impact on sales installments for tax provider

When you interface with a tax provider, the tax withheld on sales installments isconsidered Estimated tax. The estimated tax is considered as a part of thepayment terms. The BAAN IV tax register and Tax Provider tax registers are notupdated for estimated tax. The actual tax is recognized when the order is settled.For Direct orders, this occurs as shipments are made and invoices are generated.For Indirect orders, the tax is recognized when the order is closed and a finalinvoice is generated.

The correction entry that is generated when you close an order with the MaintainInstallment Data (tdsls4106s000) session includes the amount of tax and latepayment surcharge due. The tax and late payment surcharge due are included inthe amount of the correction entry created and the tax code is blank.

Finance transactions

Finance transactions use the tax provider to supply a default tax percentage, butthis can be overridden. Because you can override the default tax percentage, notax is recorded in the Tax Provider’s Tax Register for finance transactions. Inorder to get comprehensive tax reports from the Tax Provider, any tax related tofinance transactions must be manually entered from BAAN tax reports to the TaxProvider.

Tax Provider tax reportingAll tax reports used for basic or destination sales tax are available whether or notthe Tax provider interface is used, however it is expected that the Tax Provider’sown reports are the primary source of tax information when the interface isactivated.


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Line tax information

Tax information by document line is only available when the Tax providerinterface is activated. Line tax amounts supplied by the Tax Provider can beviewed in the Display Created Sales Order History by Customer and Item(tdsls5502m000) session. This information is also available on the printed orderor invoice documents, if the Country is set to print tax amounts by line.

Tax provider’s tax register

Use the Tax Provider’s tax reports to review detailed tax information. Thesereports have jurisdictional breakdown information that is not available in Baan.More information on the type and content of these reports can be obtaineddirectly from the Tax Provider.

Tax provider technical designThe tax provider interface uses a generic API to connect to tax provider productsfrom Baan in a seamless manner. The API passes messages and/or data betweenBaan and the tax provider product.

The generic API consists of a API driver that is written in C. This driver acts as arequest server for Baan. A Baan session sends a message to the API driver via adefined message queue. The API driver interprets the message and sends aresponse to the Baan session.

The interface uses a library of 4GL functions. For example, the 4GL tax interfacelibrary provides a calculate.tax() function with several parameters. Functioncalculate.tax() uses parameter information to determine the tax provider at thetime of the call and make a call to calculate.tax.avp() or calculate.tax.vertex().This allows a standard function to call either TAXWARE or Vertex. The 4GLlibrary handles the protocol that passes messages to and from the API driver.

The 4GL library looks up the needed API parameters from a table. Next, thelibrary employs messages (and UNIX message queues) to interact with the taxprovider product. The API driver sends, processes, and receives messages fromthe 4GL session and the tax provider product.

The API driver decodes the message and performs any necessary actions. TheAPI driver is a UNIX process that is dedicated to filling API requests. Theprotocol that communicates between the API and the 4GL session will have amechanism for handling errors, retrying requests, and so on.


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Figure 33 outlines the generic API scenario in Baan.

TAX ProviderFunctionality

APIDriver

BAAN Logic Server

4GL Session

4GL Session

4GL Session

Figure 33, Generic API scenario

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If you are currently running BAAN IV, the Tax provider interface must beimplemented at month end after closing out your financial period and beforeprocessing begins for the current period. However, implementation at quarter endto facilitate tax reporting is recommended. If you are unable to convert at quarterend, both BAAN IV and the tax provider tax registers must be consulted whenfiling your quarterly reports.

Pre-conversion stepsThe following must occur before you implement the Tax provider interface:

1 Define the countries for which U.S. and Canadian address verification is to beperformed with the Maintain Country Tax Provider Register(tccom7140m000) session. Then convert existing address information topredefined format.

Figure 34, Maintain Country Tax Provide Register (tccom7140m000)

2 U.S. and Canadian addresses, determined based upon the country code, mustbe in a predefined format to enable the tax provider to identify GEO codes touniquely identify a taxing jurisdiction. The city, state, and ZIP code for U.S.addresses and city, province and postal code for Canadian addresses must bein the following format:

5 Conversion considerations for taxprovider

Conversion considerations for tax provider

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U.S.

Address Line Data Example

3 City, ST Menlo Park, CA

4 Zip Code 94025

Canada

Address Line Data Example

3 City, PR Montreal, QB

4 Postal Code H1A1A1

The state or province must be in an abbreviated form.

3 Run Address Format Conversion Utility (tccom6211m000) to convertexisting address data to the correct format. The following formats for lines 3and 4 of the address are recognized for conversion in Baan IV:

Line 3 Line 4


2 City State/Province Zip

An invalid address report is generated for U.S. and Canadian addresses thatcannot be converted. These addresses must be corrected with the appropriateBAAN IV session.


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Figure 35, Address Format Conversion Utility (tccom6211m000)

4 Repeat the step 3 until all addresses are in the correct format.

5 Install TAXWARE’s SALES/USE Tax System or Vertex's Quantum forSales and Use Tax using the instructions provided by the tax provider vendor.


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6 Close the Fiscal Period with the Close Periods (tfgld1206m000) session. Thissession closes periods finally for reasons of administrative organisation.

Figure 36, Close Periods (tfgld1206m000)

The Period Type field defines the purpose of the periods to be defined. Youcan select following period types: Fiscal, Reporting, or Tax.

The Year field identifies the fiscal year in which the transactions areaccounted for.

The All Modules field identifies for which modules the periods must beclosed.

− If this field is Yes, Baan closes the period for all modules.

− If this field is No, Baan closes the period for one module.

The Module field identifies which module you want to close.

Use the Final Closing field to finally close a period.

− If this field is Yes, the period is finally closed. You can no longer reopenthe period in the Maintain Period Status (tfgld0107m000) session toprocess further transactions in this period.

− If this field is No, the period is closed. You can reopen the period in thesession mentioned for transactions, if required.


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Conversion stepsPerform the following steps to implement the tax provider interface before youenter transactions for the current fiscal period:

1 Set the Tax Provider parameter to Yes with the Maintain Tax ProviderParameters (tccom6150m000) session.

Figure 37, Maintain Tax Provider Parameters (tccom6150m000)


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2 Define the tax provider, either TAXWARE’s SALES/USE Tax System orQuantum for Sales/Use Tax with the Maintain API Parameters(tcapi1136m000) session.

Figure 38, Maintain API Parameters (tcapi1136m000)

3 Define tax provider-specific environment variables. See TechnicalImplementation Considerations for more information.


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4 Verify and assign GEO codes to existing address information with theAddress Jurisdiction Verification Utility (tccom6210m000). Choose option toupdate. This utility automatically assigns a GEO code based upon the mostlikely candidate for valid addresses. For Quantum users, the city limits flagassigned to each address is Yes for inside the city limits.

Figure 39, Address Jurisdiction Verification Utility (tccom6210m000)

An invalid address report is generated for invalid address combinations.These addresses must be corrected with the appropriate BAAN IV session.

5 Repeat step 4 until all addresses are correct and have been assigned a GEOcode.

6 Evaluate GEO codes and redefine if necessary.

In some cases you may need to assign a GEO code or city limits (Quantumusers only) other than the defaults assigned if the address qualifies formultiple taxing jurisdictions. Review the report generated in step 4. Tochange the GEO code for an existing address run its associated maintenancesession. Activate option [1] to invoke the jurisdiction verification andselection process and select the appropriate taxing jurisdiction from the listprovided. The city limits flag can be entered directly with the address’sassociated maintenance session.


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7 Using the TAXWARE or Quantum systems, enter your company, customer,and product-related information.

8 Define the valid product categories with the Maintain Product Categories(tccom7138m000) session. The defined product categories must match theproduct categories defined in the tax provider for correct tax processing.

Figure 40, Maintain Product Categories (tccom7138m000)


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9 Enter the matrix of Item Groups, Items, Contract Types, and AccountNumbers by product category with the Maintain Product Category TaxMatrix (tccom7139m000) session.

Figure 41, Maintain Product Category Tax Matrix (tccom7139m000)


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10 Enter the Sales/Service/Rental Use Indicator for Contract Types with theMaintain Contract Types (tssma2124m000) session. This field indicates thetype of tax processing required for the contract type because services andrentals can be taxed differently.

Figure 42, Maintain Contract Types (tssma2124m000)

Contract types are groups of contracts with common features. Examples:Annual Contract, Full Service and Maintenance, or Customized Contract.

The Sales/Service/Rental indicator indicates the type of tax processingrequired for each contract type since services and rentals can be taxeddifferently.


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For TAXWARE users, enter the Point of Title Passage for each Terms ofDelivery, either Point of Origin or Point of Destination with the Maintain Termsof Delivery (tcmcs0141m000) session. Terms of delivery are agreementsconcerning the delivery of goods; they appear as information on externaldocuments.

Figure 43, Maintain Terms of Delivery (tcmcs0141m000)

Cash on delivery means that goods are delivered on the condition that they arepaid for immediately on receipt. When purchase orders or sales orders are copiedto transport orders with the Copy Orders to BAAN Transportation(trtoc2999m000) session, the corresponding field on the transport order is filledwith the value selected here.

Carriage paid means that the carriage or postage has been paid by the consignor.When you copy purchase and sales orders to transport orders in the Copy Ordersto BAAN Transportation (trtoc2999m000) session, the corresponding field onthe transport order is filled with the value selected here. This field alsodetermines who is to pay for the transport order line. This field also determineswho is to be billed for the transport order line.

n If this field is Yes, the customer is the customer or supplier of thepurchasing/sales department.

n If this field is No, the customer is the customer or supplier of thepurchase/sales order. Enter a clear description here.


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The Point of Title Passage field indicates the location at which the legal title istransferred to the purchaser. TAXWARE uses the Point of Title Passage alongwith other information, to determine the taxing jurisdiction. TAXWARE defaultsto point of destination unless otherwise specified.

Post-conversion considerations1 Re-evaluation of your current tax structure in BAAN Finance must be

considered because the tax provider does not require the complexmethodology needed by non-tax provider users. When interfacing with a taxprovider, the tax code’s sole purpose is to define the GL accounts for which topost. Rates and jurisdiction are determined by the tax provider.

You may want to use separate tax codes for Finance transactions. See step 2.for more information.

2 Because the tax impact for financial transactions is not written to the taxprovider tax register, manual adjustments must be made in the provider forthe tax prior to filing your quarterly reports. To facilitate tracking of the taxfor finance transactions, you may want to use separate tax codes for thesetransactions.

3 For Service Contracts the location of the covered installations is assumed tobe the delivery address. For correct taxation, separate contracts must bemaintained for each customer location.

Technical implementation considerationsThe Tax provider interface requires several setup steps to create the link with thethird party software. This process involves modification of both the system andapplication environment. See next chapter Installation Guide for more technicaldetails.

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BAAN tax provider installationCurrently the BAAN Tax API supports both the TAXWARE and Quantumsystems. Before beginning the installation, you must verified that there is anANSI C compiler on the UNIX host system. The C compiler is required for theconventional API. Install the tax provider software and create the providerdatabases.

TAXWARE

The TAXWARE system flow is illustrated in the following diagram.

6 Tax provider interface installationguide

Tax provider interface installation guide

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6-2

VERAZIP

Tax Master File

TAXWARESALES/USE TAX

SYSTEM 3.1+

Baan IV

Product TaxabilityMatrix

STEP 3.1

Aud

it F

ileTax Returns

InternalManagement

Reports

Figure 44, Taxware system flow

The TAXWARE’s SALES/USE Tax system automatically calculates sales, use,and rental taxes for goods and services for any location in the United States(including its possessions) and for the Canadian provinces. Updated monthly, itsdatabase of tax rates accurately tracks rate changes for states, countries, andcities and towns. The system allows you to calculate special rates based onproduct types. The system records transactions in an Audit File as they areprocessed, providing clear audit trail for future use as well as a source ofhistorical reports.


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The TAXWARE interface requires the following software to be installed:

n VERAZIP

n Sales/Use Tax System

n Sales Tax Exemption Processing System (STEP)

n The Sales/Use Tax System must be configured to work with STEP. See theTAXWARE documentation for further installation instructions.

The tax API will not work if these products are not installed and configuredcorrectly.

Additional information about TAXWARE can be found at www.taxware.com.

Quantum

The Vertex Quantum System Flow is illustrated in the following diagram.

GeoCoderDatabase

Tax RateDatabase

TDMDatabase

RegisterDatabase

TaxCalculation

Function

TaxReturns

Audit &Management

Reports

GeoCoderProgram

BAANERP

System

INTERFACE INTERFACE

Figure 45, Vertex Quantum system flow

The Quantum for Sales and Use Tax takes transactions data from the Baanapplication determines the correct tax rate by searching its databases forexceptions, the appropriate jurisdiction, and the current tax rate. Quantum thencalculates the correct tax amount and passes this information back to the Baanapplication. The transaction data is stored in a register database and used for thepreparation of tax returns and creation of audit and management reports.

The Quantum interface requires that the Sales and Use Tax system be installedand configured correctly. See the Quantum documentation for further installationinstructions.

http://www.taxware.com/


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Additional information about Vertex can be found at www.vertexinc.com

BAAN Tax API installation

UNIX

1 Create a temporary directory for the BAAN Tax API build.

2 Copy all library files ( *.a) from $BSE/api/lib to the temporary directory.

3 Copy the appropriate make file from $BSE/api/taxpmake to the temporarydirectory.

− Makefile.avp for TAXWARE.

− Makefile.vertex for Quantum.

− Makefile.both for both providers.

4 Rename the file to makefile.

5 Edit the makefile variables.

− Set CC equal to the executable for the ANSI C compiler.

− Set CCOPTIONS equal to any compile options required for an ANSIcompilation.

For TAXWARE

Set Equal to

AVPLIB The directory above the Btree library.

AVPTAXDIR The directory that contains the tax objects and headers.

AVPZIPDIR The directory that contains the zip objects and headers.

AVPSTEPDIR The directory that contains the STEP objects and headers.

For Quantum

Set Equal to

VERTEXDIR The directory above the Quantum product directories.

For both providers, set both the TAXWARE and Quantum variables asdescribed above.

6 Type make in the temporary directory.

7 Move api6.1 from the temporary directory to $BSE/bin.

NOTE

http://www.vertexinc.com/


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Windows NT

A single executable api.exe is delivered in the \baan\bin directory. Thisexecutable dynamically links tax provider functions at run-time. The PATH mustcontain the directory of Tax provider DLLs.

For TAXWARE, include the directory for AVPTAX.DLL, AVPZIP.DLL, andAVPSTEP.DLL in the PATH.

For Quantum, include the directory for VST.DLL and LOCATION.DLL in thePATH.


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Environmental variablesThe BAAN Tax API uses the following environment variables to determineinformation about the tax providers. The environmental variables must be set forall users using the API.

TAXWARE Environment Variables

Variable Name Defines Required/Optional

AVPIN Input directory for tax data files. Required

AVPOUT Output directory for tax data files. Required

AVPAUDIT Directory for tax audit files. Required

AVPTEMP Directory for temporary use by tax system. Required

STEPIN Input directory for STEP data files. Required

STEPOUT Output directory for STEP data files. Required

STEPAUDIT Directory for STEP audit files. Required

STEPTEMP Directory for temporary use by STEP. Required

ZIPIN Input directory for VERAZIP data files. Required

ZIPOUT Output directory for VERAZIP data files. Required

ZIPTEMP Directory for temporary use by VERAZIP. Required

Quantum Environment Variables

Variable Name Defines Required/Optional

VERTEXGEO Directory where GEO Code databaseresides.

Required

VERTEXRATE Directory where rate database resides. Required

VERTEXREG Directory where register database resides. Required

VERTEXTDM Directory where TDM database resides. Optional

VERTEXPWD Working directory to be used by the TDM. Optional

VERTEXUSER User information when using a relationaldatabase system.

Optional

VERTEXSERVER Database information when using a relationaldatabase system.

Optional


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Under certain conditions in heavily loaded systems, API time outs occur. If thishappens, see the following table for additional environment variables that can beset.

Tax API Performance Environment Variables

Variable Name Defines Tunes

APISTART The maximum number of seconds Baanwaits for the API process to start. The defaultsetting is 20. If an error 12 occurs, setAPISTART to greater than 20 in the UNIXenvironment for each user.

API time-out

APIWAIT The maximum number of seconds Baanwaits for a response from the API. Thedefault setting is 20. If error 11 or 7 occurs,set APIWAIT to greater than 20 in the UNIXenvironment for each user.

Messagetime-out

Setup environmental variables

The environment variables must be set using the following procedure:

1 Add the following line into the file ipc_info in $BSE/lib:

bshell_taxp s 0 0 p ${BSE}/bin/taxp6.1

This line creates a new bshell name, which is used in the BW configuration.If you look in the file ipc_info, you will notice that there are other bshellnames with the same syntax (see the following example).

$BSE/lib$ more ipc_infobshell s 0 0 p ${BSE}/bin/bshell6.1bshell_taxp s 0 0 p ${BSE}/bin/taxp6.1audit s 501 510 p ${BSE}/bin/audit_srv6.1fs6.1 s 303 335 m ${BSE}/bin/fs6.1bisam s 307 370 p ${BSE}/bin/bisam_srv6.1btam s 307 370 p ${BSE}/bin/btam_srv6.1informix s 305 350 p ${BSE}/bin/inf_srv6.1oracle7 s 302 320 p ${BSE}/bin/ora7_srv6.1bshell.inst s 0 0 p ${BSE}/bin/bshell_inst6.1sh_server s 0 0 s ${BSE}/bin/sh_server6.1$

The easiest thing to do is to cut and paste one of the existing lines that definea bshell name and change the information of the copy to be identical with theabove bshell_taxp line.


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2 In $BSE/bin, create an executable command file $BSE/bin/taxp6.1.

Include the following information:

− First line must be: #!/bin/sh

− Set all of the necessary environment variables.

− Last line must be: ${BSE}/bin/bshell6.1 $*

#!/bin/sh

AVPIN=/baan4/taxware/UD9612-1/salestax/indataAVPOUT=/baan4//taxware/UD9612-1/salestax/outdataAVPAUDIT=/baan4//taxware/UD9612-1/salestax/auditAVPTEMP=/baan4//taxware/UD9612-1/salestax/temp

STEPIN=/baan4//taxware/UD9612-1/step/indataSTEPOUT=/baan4//taxware/UD9612-1/step/outdataSTEPAUDIT=/baan4//taxware/UD9612-1/step/auditSTEPTEMP=/baan4//taxware/UD9612-1/step/temp

ZIPIN=/baan4//taxware/UD9612-1/vzip/indataZIPOUT=/baan4//taxware/UD9612-1/vzip/outdataZIPAUDIT=/baan4//taxware/UD9612-1/vzip/auditZIPTEMP=/baan4//taxware/UD9612-1/vzip/temp

VERTEXGEO=/baan4/quantum/V1.1.4/outdata/geodbVERTEXRATE=/baan4/quantum/V1.1.4/outdata/ratedbVERTEXREG=/baan4/quantum/V1.1.4/outdata/regdbVERTEXTDM=/baan4/quantum/V1.1.4/outdata/tdmdb

export AVPIN AVPOUT AVPAUDIT AVPTEMPexport STEPIN STEPOUT STEPAUDIT STEPTEMPexport ZIPIN ZIPOUT ZIPAUDIT ZIPTEMPexport VERTEXGEO VERTEXRATE VERTEXREG VERTEXTDM

${BSE}/bin/bshell6.1 $*

When you use the bshell name bshell_taxp to set up the BW configuration,the contents of the command file taxp6.1 are executed when the BW isinvoked. The environment variables are set and the current bshell is activated.

Verify that permission on the tax provider data files, for example,/baan4/quantum/V1.1.4/outdata/ratedb are executable in the UNIX group level.

NOTE


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Baan windows configuration

Perform the following steps to add or modify a configuration before starting upthe Baan Windows server:

1 From the login screen, configure the Baan Windows.

Figure 46, Login

2 Set up configuration.

Figure 47, BW Configuration

In the Configuration Name field, enter a new name to add a configuration orselect an existing name to modify an existing configuration.

In the Hostname field, enter or modify the hostname of the remote Baan host.


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In the Username field, enter or modify a valid UNIX username for the remoteBaan host.

In the Password (Optional) field, enter or modify the password that belongs tothe username specified in the Connect As field. This password is encryptedbefore storage on disk.

In the BSE field, enter or modify the path of the BSE environment on the remoteBaan host. This must be the same as the BSE environment variable on the Baanhost.

In the Bshell Name field, enter or modify the application logic which is to beused on the remote Baan host.

Communication

UNIX

Communication between the BAAN Tax API and the tax provider is handled byUNIX message queues. Kernel parameters must be set to optimize the UNIXmessage queues. Parameter names can be dependent upon the operating systemsrequirements.

UNIX Message Queue Parameters

Parameter Purpose Recommendedvalue

MSGMAX This parameter specifies the maximum sizeof a message.

2048 or greater

MSGMNB This parameter specifies the maximumnumber of bytes on message queuessystem wide.

System maximum(typically, 32K)

MSGTQL This parameter specifies the maximumnumber of open messages system wide.

System maximumor (2 * Baan users)

MSGMNI This parameter specifies the maximumnumber of message queues that can beused system wide

System maximumor (5 * Baan users)

Message queues are allocated at BAAN Tax API initialization, and unallocated attermination. In the event the BAAN application aborts abnormally, messagequeues can be incorrectly unallocated. Periodically, message queues must bemonitored with the command: % ipcs -q.


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Message queues that are owned by user root must never by removed, butmessage queues owned by non active Baan users can be unallocated by executingthe command: % ipcrm -q [message queue number].

Windows NT

Communication between the BAAN Tax API and the tax provider is handled byMailSlots.

Shared memoryThe BAAN Tax API application frequently uses three objects to retrieve tax ratesand GEO Codes from the tax provider. Placing these objects into shared memoryenhances the BAAN Tax API performance.

1 Execute the Maintain Shared Memory Data (ttaad4150m000) session as userbsp.

2 Insert a record, under the correct package VRC, for:

− tcapil000m000

− tcapidlll001

− tcapidlll002

− tccomdll0020

3 Convert to runtime Data dictionary.

Error codesThere are several classes of errors that can occur due to problems with the taxprovider software or incorrect data passed to the interface. These errors occurinfrequently and in most cases never appear. The following table lists the errorcodes that can be passed to Baan, along with a description and cause.


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Tax Provider Error Codes

Range ofMessage Codes

Description of Range General Cause

0-99 General communication errors. Communication failure

1100-1199 VERAZIP product error. product problem or dataissue.

1200-1299 Sales and Use Tax System error in taxcalculation.

product problem or dataissue.

1300-1399 Sales and Use Tax system error in jurisdictiondetermination.

product problem or dataissue.

1400-1499 Vertex Geocoder product error. Vertex product problemor data issue.

1500-1599 Vertex Quantum system tax calculation error. Vertex product problemor data issue.

1600-1699 Vertex Quantum system jurisdictiondetermination error.

Vertex product problemor data issue.

Specific Tax Provider Error Codes

Message Code Type Description

api00001 Warning Must set Using Tax Provider parameter in Maintain TaxProvider Parameters (tccoml150m000) session to change APITax Parameters.

api00002 Warning Using Tax Provider parameter will be de-activated.

api00003 Warning When changing tax providers, run Address JurisdictionVerification Utility (tccoml910m000) to reassign GEO codes toaddress data.

apis0000 Warning API error occurred. Error number %d.

apis0001 Warning API request failed. Message was not sent. Error code %d.

apis0002 Warning API request failed. Message was not received. Error code %d.

apis0003 Warning Environment variable not set for API interface. Error code %d.


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Message Code Type Descriptionapis0004 Warning API interface failed to open required files. Error code %d.apis0005 Warning Tax provider failed to be initialized. Error code %d.apis0007 Warning API message not received. Error or acknowledgement

message expected. Error Code %d.apis0008 Warning API message received out of order. Error code %d.apis0009 Warning API message was invalid. Error code %d.apis0010 Warning API message received from incorrect interface. Error code

%d.apis0011 Warning API message not received. Error or data message expected.

Error code %d.apis0012 Warning API Process failed to start. Error code %d.apis0013 Warning API Process failed to open message queues. Error code %d.apis0014 Warning API Process received bad initialization message. Error code

%d.apis0015 Warning API Process received bad action data. Error code %d.apis0016 Warning API Message received out of sequence. Error code %d.apis0101 Warning Point of title not set. Error code %d.apis0102 Warning Service indicator not set. Error code %d.apis0103 Warning API handler failed to activate. Error code %d.apis1000 Warning Tax parameter table is not filled. Error code %d.apis1001 Warning Tax provider is not on. Error code %d.apis1101 Warning Invalid API action. Error code %d.apis1102 Warning AVP ZIP Master file not found. Error code %d.apis1103 Warning AVP County file not found. Error code %d.apis1104 Warning AVP Exception file not found. Error code %d.apis1105 Warning AVP file not found. Error code %d.apis1112 Warning Invalid state code. Error code %d.apis1113 Warning Invalid city or zip code. Error code %d.apis1114 Warning State and zip code combination invalid. Error code %d.apis1115 Warning State and city combination invalid. Error code %d.apis1116 Warning State, city, and zip code combination invalid. Error code %d.apis1117 Warning State, city, and zip code combination invalid. Error code %d.apis1118 Warning State, city, and zip code combination invalid. Error code %d.apis1130 Warning Zip code not valid for state code entered. Error code %d.


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apis1141 Warning Zip code covers multiple city names. Error code %d.

apis1142 Warning City and state combination has multiple zip codes. Error code%d.

apis1200 Warning AVP Tax error occurred. Error code %d.

apis1207 Warning Invalid API action. Error code %d.

apis1208 Warning Error accessing AVP Tax Master file. Error code %d.

apis1209 Warning Invalid AVP Tax selection parameter. Error code %d.

apis1210 Warning AVP Tax Master file not open. Error code %d.

apis1211 Warning Invalid AVP Tax calculation parameter. Error code %d.

apis1212 Warning Error accessing AVP Product file. Error code %d.

apis1213 Warning Error accessing AVP Tax file. Error code %d.

apis1223 Warning AVP Audit file defined as long. API requests short file. Errorcode %d.

apis1224 Warning AVP Audit file defined as short. API requests long file. Errorcode %d.

apis1225 Warning Error accessing AVP Audit file. Error code %d.

apis1226 Warning Error accessing AVP Rental file. Error code %d.

apis1227 Warning Error accessing AVP Freight file. Error code %d.

apis1228 Warning AVP Calculation Error not defined. Error code %d.

apis1229 Warning Error accessing AVP Calculation Error file. Error code %d.

apis1230 Warning AVP Jurisdiction Error not defined. Error code %d.

apis1231 Warning Error accessing AVP Jurisdiction Error file. Error code %d.

apis1232 Warning AVP Jurisdiction Processing not defined. Error code %d.

apis1233 Warning Error accessing AVP Jurisdiction Error file. Error code %d.

apis1235 Warning Error accessing AVP STEP file. Error code %d.

apis1251 Warning Incorrect transaction type or certificate present, STEPprocessing failed. Error code %d.

apis1252 Warning STEP processing failed due to blank customer number. Errorcode %d.

apis1253 Warning Error accessing AVP STEP file on subsequent call. Error code%d.

apis1254 Warning Invalid state code. AVP STEP processing failed. Error code%d.


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apis1300 Warning AVP Invalid jurisdiction error. Error code %d.

apis1301 Warning Point of Title was not valid. Error code %d.

apis1302 Warning Service indicator was not valid. Error code %d.

apis1303 Warning Invalid API action. Error code %d.

apis1309 Warning Invalid AVP Tax selection parameter. Error code %d.

apis1400 Warning Error retrieving geo code information from Vertex. Error code%d.

apis1401 Warning Error accessing Vertex Tax system. Error code %d.

apis1402 Warning Invalid City, State, Zip Code Combination. Error code %d.

apis1403 Warning Invalid City, Province, Postal Code Combination. Error code%d.

apis1500 Warning Vertex system error occurred in tax calculation. Error code%d.

apis1520 Warning Vertex system error occurred. Error code %d.

apis1521 Warning Vertex failed to set invoice number. Error code %d.

apis1522 Warning Vertex failed to set register write to no. Error code %d.

apis1523 Warning Vertex failed to set register write to yes. Error code %d.

apis1524 Warning Vertex failed to set transaction type. Error code %d

apis1525 Warning Vertex failed to set product code. Error code %d.

apis1526 Warning Vertex failed to calculate tax. Error code %d.

apis1527 Warning Vertex failed to retrieve company information. Error code %d.

apis1528 Warning Vertex failed to calculate state tax. Error code %d.

apis1529 Warning Vertex failed to calculate city tax. Error code %d.

apis1530 Warning Vertex failed to calculate county tax. Error code %d.

apis1531 Warning Vertex failed to calculate state district tax. Error code %d.

apis1532 Warning Vertex failed to calculate local county tax. Error code %d.

apis1533 Warning Vertex failed to calculate local tax. Error code %d.

apis1534 Warning Vertex failed to calculate local district tax. Error code %d.

apis1535 Warning Vertex failed to set customer information. Error code %d.

apis1536 Warning Vertex failed to reset tax information. Error code %d.

apis1600 Warning Vertex Invalid jurisdiction error. Error code %d.


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Debug capability

TAXWARE

You can compile the system with TAXWARE.DEBUG defined and the debugfile dbg.txt located in the directory pointed to by the environmental variableAVPAUDIT.

Vertex

There is a system variable VERTEXDEBUG. If set to 1, the tax providerinterface produces a file called baan.out in your home directory (for Unix).

In NT, the same file is in /baan/tmp. It can be set by inserting -- -setVERTEXDEBUG=1 in the Command field of the BW configuration, as shownin the following figure.

Figure 48, BW Configuration

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General tax provider questions1 When exactly does the Tax API update the tax provider register?

The API updates the Tax Provider’s tax register at the point of processingdelivered sales orders for Sales transactions and at the point of creatingfinancial transactions for Service Orders or Contract Installments. Theregister is also updated when an adjustment is made through the Tax ProviderCalculation Utility (tccoml912m000).

2 Some of the Tax Provider API messages are missing from the release of BaanIVb and Baan IVc tapes. How can these messages be added?

The missing API messages have been placed in a sequential dump file. Thisfile is available on Baan's public ftp site. Contact Baan Support for the ftpsite.

Once the file has been retrieved, it must be converted back into itscomponents by using the command tar -xvf api.mess.tar if you are on UNIX,or double-click the file icon api.mess.exe if you are on Windows NT. Thiswill create a new directory with the dump components. Then, thesecomponents must be imported into Baan using the Import Data Dictionary(ttiex1285m000) session.

3 When a service order with more than one position is entered, will the printedinvoice show all the positions for the order? Will there be a financialtransaction created for that invoice?

All lines, for which the tax is calculated without any errors, will be invoicedcorrectly and the financial transactions written correctly. If an error occursduring tax calculation, the line amount is not considered for tax calculation.

However, it can cause the same item line to be printed multiple times. Thishappens when a tax calculation error occurs for an item and the system triesto invoice the whole order again, because of the failure in invoicing the orderin the previous try. This feature cannot be avoided unfortunately

4 What is the equivalent to the point-of-order acceptance addresses?

7 Frequently asked questions

Frequently asked questions

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There is no direct equivalent to the order acceptance address currently inBaan. Therefore, the value used is based on the closest estimate for the typeof transaction. See Tax calculations for tax provider in this document for amatrix showing what is passed to the tax provider for each address type pertype of transaction. In general, the order acceptance address relates towhoever is selling the goods. If you are selling goods to one of yourcustomers, your company address is the order acceptance. If one of yoursuppliers is selling goods to you, the supplier address is the order acceptance.

5 Does the tax provider update the tax codes by postal codes table?

No, the tax codes by postal codes table must be updated by you in order toselect the correct tax codes based on postal codes. The Tax Provider has novisibility of the tax code in Baan, however the presence of a tax code is usedas the trigger to call the Tax Provider.

6 When making adjustments using the Tax Provider Calculation Utility, it isnot possible to adjust tax amounts with an initial value of zero. Why can’t allamounts be adjusted?

The Tax Provider Calculation Utility (tccoml912m000) session only uses theaddress that is entered directly into this session for the ship-to, ship-from,point-of-order acceptance, and point-of-order origin addresses when queryingthe tax provider for rates. Adjustments can only be made to rates and amountsthat are returned from the tax provider. For example, if no value is returnedfor the secondary county rate, then you will not be able to make any manualadjustments to the secondary county tax amount. No jurisdiction informationrelated to the secondary county rate is available, hence, there is no way forthe API to attach an entry to the correct tax jurisdiction in the tax providerregister.

7 Which Baan sessions call or update the Tax Provider?

All sessions which print or calculate tax have the capability to call the TaxProvider. For example, the sales order and purchase order update thecustomer or supplier order balances whenever a line is created, modified,cancelled, or deleted. Tax is included in the order balance, therefore the taxprovider is called each time any of those actions is performed. Similarly,when an order acknowledgement or quotation is printed, tax is included.Therefore, the tax provider is called whenever one of these documents isprinted.

The tax provider’s tax register is only updated from the Process DeliveredSales Orders (tdsls4223m000) session and the Process NA Tax ProviderAdjustments (tccom6214s000) of the Tax Provider Calculation Utility(tccom6212m000) session.


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8 Can GEO Codes be assigned manually?

Manual application of GEO Codes is not permitted. All GEO codes areassigned automatically by the Tax Provider.

9 Can use tax be accrued on invoices where the vendor has not charged tax?

In versions 4.0C and lower, the interface supports tax verification of avendor’s charged sales tax. This allows you to calculate a sales tax andcompare it to the amount charged by the vendor. There is no posting of usetax accruals in the Tax Provider’s Register Database. You do have the abilityto accrue any differences in the Baan GL.

10 When a credit transaction is performed, can I simply post the tax-only creditamount to the Tax Provider’s Register Database?

When making a credit adjustment, you must fully void out the originalinvoice to remove tax amounts from the Register Database by passing anegative dollar amount.. Tax-only credit transactions are not supported.

11 Why do I get Seller’s Use Tax for out of state sales?

There is currently no way in the Tax Provider to specify the states where theyou have established a presence for sales tax purposes. Therefore, anyshipments that cross state lines are considered to be subject to Seller’s UseTax. Baan passes all addresses for the transaction to the Tax Provider and theTax Provider makes the decision as to which type of tax will apply.


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TAXWARE specific questions1 Does Baan pass any values for Job Number, Account Number, or Cost Center

to TAXWARE for use in identifying exceptions defined in STEP?

No, Baan does not pass any values for these fields

2 One of the parameters passed from Baan to TAXWARE controls whethereach level of tax is checked individually for exemptions in STEP or whetherall levels follow the definition of the state level. How is this parameter set byBaan and what are the implications?

Originally, Baan passed this parameter to indicate that the state leveldefinition is used for all levels of tax. This decision was made becausenormally in the US an exemption certificate is issued by the state, but theexemption also applies to all county, city, and district taxes in that state.Setting this parameter to use the state level definition allowed you to enteronly one exemption in STEP for all taxes applicable in that state. Otherwise,it would be necessary to enter a separate exemption for each country,county, city, and district in the state in order to prevent calculation of taxesat the lower level jurisdictions. This, however, presented a problem forCanada. TAXWARE treats Canada as a state and the provinces as cities forpurposes of determining exemptions in STEP. Setting the parameter at thestate level ended up preventing separate provincial exceptions from beingrecognized.

With TAXWARE 3.1, a new field was added to the STEP exemptiondefinition for Default to State. Use this field to determine on an exemptionby exemption basis whether to exempt all levels of tax based on the statelevel setting or define each level individually. A patch has been created forall supported releases of Baan that switches the setting of the overall systemparameter passed from Baan to TAXWARE so that the individual settings ofeach STEP exemption are considered.


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3 Can Baan run TAXWARE software that is on another machine? We havethree application servers, that we want to direct to a main server. The mainserver contains the database that is used by Baan. It also contains ourTAXWARE implementation.

The TAXWARE database can be set up remotely from the application server.The TAXWARE database can be shared by multiple application servers, ifthe tax database is placed with the database server (assuming that the multipleapplication servers share a single database server). On the other hand, youcan configure the NFS at Unix level so that the TAXWARE databasedirectories are available to other Unix systems. For each Unix system, taxAPI related environment variables must be set for the users. The api6.1binary file must exist in each $BSE/bin directory (If different Unix systemsare used, api6.1 must be compiled for each system). Also, consultTAXWARE for more details about database sharing by several systems.

Vertex specific questions1 I am getting Vertex error 1526 in some Baan sessions. What causes this to

occur?

This is an error code 26 from Vertex. Specifically, if a four-digit code isreported from the tax provider, strip the first two digits off, and use the lasttwo digits. You can use the first two digits to narrow down the area asfollows:

− 14 - Geocoder error

− 15 - tax error

− 16 - jurisdiction error

The error 1526 is a Vertex Tax Register error, not a Baan application error.Contact Vertex for assistance. In some cases, dropping the Register databaseand recreating it solves the problem.

Tax Register holds the log information of tax related transaction. There arefive sessions that update the Vertex Sales Tax Register:

− Tax Provider Calculation Utility (tccoml912m000)

− Process Delivered Purchase Order (tdpur4223m000)

− Print Service Order Invoices (tssma3473m000)

− Create Financial Transaction for Contract Instalment (tssma6201m000)

− Create Financial Transaction for Service Order (tssma6202m000)


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2 Can Division Code be used in determining taxability?

No Division code is passed from Baan to Quantum for Sales and Use Tax.

3 Does the Baan/Quantum for Sales and Use Tax integration support invoicelevel maximum tax bases?

In order to provide line item taxability and to support ship-to/ship-fromdesignations for each line item, all transactions are processed at the line itemlevel only. There is no invoice level processing at this time.

4 Can you use Store Codes to segment tax information?

There is no corresponding field in the Baan application that can be tied toStore Location.

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Problem Likely Cause Solution

Error Message: API messagenot received. Error oracknowledgement messageexpected. Error Code 7.

Tax Provider environmentvariables are not definedproperly.

BW Configuration does notreference the bshell where theTax Provider environmentvariables have been set up

See Chapter 6 for informationon set up of environmentvariables

No tax returned from TaxProvider for taxabletransaction.

Country of delivery notrecognized as United Statesor Canada.

No tax code is blank ondocument line.

Enter country in Country TaxProvider Register(tccom1140m000) session.

Enter tax code.

Tax Exceptions defined in theTax Provider are not beingpicked up in Baan.

Product Category orCustomer/Supplier code usedto define the exception is notidentical to the related BaanProduct Category orCustomer/Supplier.

Double check data fordifferences in spelling,capitalization, etc. Also besure that the Company codesmatch.

8 Trouble shooting

Trouble shooting

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GEO codeA code used together with or in lieu of address information such as the city,state/province, and ZIP/postal code to uniquely identify a taxing jurisdiction. Thetax provider determines the GEO code based upon the address informationentered and the county and city limits selected.

The format of the GEO code varies by tax provider. TAXWARE uses a two-digitGEO code; the GEO code together with the city, state, and ZIP code, identifies ataxing jurisdiction. Quantum uses a nine-digit GEO code that consists of a two-digit state code, three-digit county code, and a four-digit city code. A tenth digitidentifies if the jurisdiction is inside or outside of the city limits.

ParametersThey are variables to which a constant value is assigned. If you change parametervalues it changes the way in which the module operates, allowing you to adaptthe module to the specific requirements of your company.

Point of title passageThe point at which the title passes, either origin or destination, is used by the taxprovider TAXWARE’s SALES/USE Tax System to determine the taxingjurisdiction.

Product categoriesEnable the tax provider to compute tax based on the type of products that arebought or sold. For example, it is common in the United States for materials tobe taxable an labor to be non-taxable. The defined product categories must matchthe product categories defined in the external tax provider.

Sales/service/rental use indicatorThe Sales/Service/Rental indicator indicates the type of tax processing requiredfor each contract type since services and rentals can be taxed differently.

Tax providerA tax provider is a third-party software product that facilitates the computation oftax for U.S. and Canadian taxes. To facilitate the calculation of tax in the U.S.and Canada an interface to TAXWARE's SALES/USE Tax System and Vertex'sQuantum for Sales and Use Tax is provided.

9 Glossary

Glossary

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Sample invoice

Figure 49, Sample Invoice

10 Appendix

Appendix

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