Set the Sales Tax processing parameters in the System Control file.

 The Sales Tax Processing applications make use of the information that is entered for the following parameters in the system Control file (File 248).  These parameters must be set by the system administrator or Cove Systems personnel before any Sales Tax processing may begin.  Please see the System Administrators Reference section of the documentation for more information about the System Control file.

SOEDSHIP: Determines whether or not operators may create one time ship to addresses in the Sales Order Entry program.  If this parameter is set to Y, the system will allow editing of the ship to information which is loaded into the sales order header.  If the parameter is set to N, the system will only allow the ship to address to be edited from within the Shipto overlay called by the Order Entry program. Note: Setting this parameter to Y provides the most flexibility from the order entry standpoint as it allows operators to edit the ship to address for a sales order without creating a permanent ship to record in the Shipto Master file.   On the other hand, setting the parameter to N provides the most control from the accounting standpoint as it forces the operator to select existing addresses or to create a new record in the Shipto Master file (which provides a permanent record of all shipping addresses used).  Setting the parameter to N also provides more control over the tax information in the shipping address as the overlay program allows security to be set on fields such as the Taxtype and Taxcode.  This control is not available if the parameter is set to Y.

TAXSHIP: TAXSHIP parameter was used in prior version of the system to determine whether sales tax was charged by the system on the shipping charges on each invoice. 

If the shipping charges for each invoice were taxable, this parameter was set to "Y".  If shipping charges for each invoice were not subject to sales tax, this parameter was set to "N".   This parameter was used prior to the addition of the Tax Shipping flag in the Taxcode file (which allows you to specify treatment of shipping charges for each Taxcode) and is also used as the default if the Tax Shipping flag in the Taxcode records are blank.

SOSYNTAX: If this parameter is set to Y (the standard setting) the system will synchronize the Taxcode in each sales order line item with the Taxcode in the sales order header as each order is saved.  If the parameter is set to "N", then different sales Taxcodes can be assigned to each line item.  Normally this parameter should be set to "Y".  If you have situations where you need to change the Taxcode and tax rate for certain items on the sales order (to handle different sales tax or value added tax rates for the different items on the order), this parameter must be set to N.

SHIPTXED: Controls whether or not the operator may edit the sales tax information (Taxtype, Taxcode) assigned to each ship to record when the operator is in the Shipto Editing window.  If this parameter is set to "Y", the operator may edit the Taxtype and Taxcode assigned to each ship to address.  If the parameter is set to "N", the system will not allow the operator to edit the Taxtype or Taxcode for existing ship to addresses.  In this case, the system will fill in the Taxtype for new ship to addresses based on the information assigned to the Customer in the Customer Master file.  If the parameter is set to "N" the Taxcode field for new shipping addresses will be filled in based on the zip code which is input by the operator for the new shipping address.

TAXZIP01:Controls whether or not Customer and Shipto Taxcodes are automatically assigned by the system based on the zip code being entered.

More:

Assign the appropriate Taxtype to all customer and ship to records.