Sales Tax Certificates - Sales Order Processing

During Sales Order Entry, the system first verifies that a valid shipto address is present for the order being entered.  If a default shipto address is present for the customer, the system loads the default shipto address for the customer into the order.  The system then checks to see if the Taxtype in the Shipto record is set to RESALE.  If the order is RESALE and the state in the shipto record is one in which you have nexus, the system then checks the certificate information to make sure it is not expired.  If the shipto tax information is required, but it is not present or it is expired, the system displays an error message that the tax information in the default shipto is not valid, and it clears this shipto so you are forced to select a valid record. 

If no default shipto address has been identified for the customer being processed, the order entry program displays an error message (No Default Shipto Address set Shipto before entering lines).  If a valid shipto address is not entered, the Order Entry program will display an error message when you try to insert a line item on the new order (the message is Invalid Value Sohead Ship Tax Type).

At this point the operator must either select an existing shipto address for the customer, or they must create the shipto address to be used on the order.

If an existing shipto address can be used for the sales order being processed, the operator can select the address.  At this point, the system checks to see if the shipto record Taxtype is RESALE and the state in the shipto record is one in which you have Nexus.  If so, the system checks the certificate information in the shipto record.  If the certificate information is valid, the system accepts the address.  If the shipto certificate information is required and is invalid, the system displays a warning that the  Tax Certificate is invalid or has expired and that the sales order will be held.

At this point the available options for the order entry operator are determined by whether or not the operator is allowed to enter or edit tax certificate information based on the System Parameter TAXCRTIA.

If the order entry operator is not allowed to enter a new certificate into the system  or edit existing certificate records (TAXCRTIA = N), the operator must select an existing shipto address or create a new shipto record, and select a valid certificate record.  If a valid certificate is not in the system for the customer, the operator can save the shipto and then use it for the sales order, but the system will warn the operator that the certificate information is invalid or expired, and that the order will be placed on a Sales Tax Hold.  This behavior is designed for customers who wish to only allow specific users to control certificate entry and editing.

If the order entry operator is allowed to enter or edit certificate information, into the system (TAXCRTIA = Y), the operator can enter a new certificate record during shipto setup (for a new address or shipto state) or editing (to update an existing shipto with current sales tax info) and avoid the system placing the a sales tax hold on the sales order.

Sales Order Audit Processing

As each new sales order is saved, or an existing order is edited, the system does the following.

      As each sales order is saved, the system checks the order to determine if the order is a resale order. 

      If the order is resale, and if the state the goods are being shipped to is a state in which you have nexus (see configuration notes), the system checks to see if valid resale certificate information is entered into the shipto address in the order.

      Valid resale certificate information is defined as a certificate where the certificate number is loaded (not blank), the expiration date of the certificate is greater than the current date , and where the state in the certificate record is the same state as that in the shipto address for the order or the state in the shipto address in the order is one that accepts foreign (or out of state) certificate information (again see configuration notes).

      If the order does not have valid certificate information and it is required, the system places a type N hold (sales tax) on the sales order.

      While a sales tax (or any hold), is open on a sales order, the order may not be shipped (you may not print a picklist for a held order), and if the order is a vendor shipment, you may not place a po for the goods to be delivered to the customer (you may not normally convert a vs po requisition to a PO while an order is on hold).

More:

Sales Tax Certificates - Nightly Order Audit