Sales Tax Processing - EDI850 Sales Order Import

The EDI850A1 program is used to import customer sales orders that are submitted using the 850 EDI format.  This section describes how the import program determines the Taxtype and Taxcode to be used for each order, and it describes the Sales Tax Certificate check or Nexus test that is performed by the program.

Taxtype and Taxcode Assignment

The Sales Tax information used by the EDI program is based on the shipto address being used for each order.

      Existing Shipto:  The EDI program first checks to see if the order being submitted points to a valid existing shipto address.  It tries to find the shipto based on the billto company account number and the shipping account number (which are submitted by the customer in the EDI input file).  If the shipping account number matches a Shipto ID in the shipto file, the shipto address information is used for the order.  In this case, the Shipto Taxtype and Taxcode are moved to the Sales Order Header Ship Tax Type and Ship Tax Code fields.

      Shipto is specified in input file.  If the shipto address for the order is not set up in the system but it is specified in the input file, the system uses the shipping address information from the input file.  It creates a new shipto address record for the order, it loads the Company Taxtype into the order header, and it automatically finds the correct Taxcode to be used for the order based on the shipto zipcode being used.

      Shipto is not specified.  If the shipto address for the order does not already exist in the system, and it is not specified in the EDI input file, the system uses the Billto or customer information for the order company.  The system creates a new shipto address for the customer using the Company Taxtype and Taxcode fields, and it automatically updates the taxcode field based on the shipto zipcode being used.

Nexus or Sales Tax Certificate Test

Once the EDI program has found or created the shipto record to be used for the sales order being processed, it performs a Nexus check or sales tax certificate audit.  The program first checks if the order being processed is a RESALE order.  If so, the system then checks the Nexus System Control record in the Textdata file.  If this record contains the State code for the state the order is being shipped, to, the system then tests the shipto tax date and shipto tax number fields.  If the tax date is less than the current date plus the number of days in the SODEFSCH (default schedule date) parameter, or if the Shipto Tax ID field is blank, the system will place an N or Nexus hold on the sales order.