Sales Tax Manager

Overview

The CORESense Sales Tax Manager allows you to define Sales Tax Rules, which determine how sales tax is calculated on products and shipping charges across all channels.

There are three parts to a Sale Tax Rule

Sales Tax Rule
Sale Tax Products
Sales Tax Modifiers

In CORESense you can create three types of Sales Tax Rules as defined below.

Rules	Description
Product	Created for each state or zip code/state combination where product sales tax is to be collected, and must be explicitly assigned to the corresponding products. This allows for different Products to be taxed differently in the same zip code/state or state.
Shipping	Created for each state or zip code/state combination where shipping tax is collected. Shipping Sales Tax Rules apply to all orders and are not assigned to individual products. The rate specified is applied to the entire shipping cost.
Shipping- Taxable Items Only	Used for orders containing both taxable and non-taxable items. Some states require that shipping tax only be applied to the shipping for taxable items. CORESense applies these rules by first determining the percentage of the order subtotal comprised of taxable items. It then applies this percentage to the total shipping cost before calculating the Shipping sales tax.

Sales Tax Rules and Sales Channels

Sales tax rules of all types are applied to all sales channels and cannot be configured specific to a channel or channels.
Once a Sales Tax Rule has been created, it cannot be deleted. The Rule can exist without any products or values associated with it, but it cannot be entirely deleted.

POS Orders

Orders placed through the Point of Sale (POS) are handled as follows:
Take Now – CORESense looks to match the state and/or zip code of POS terminal.
Send Sale – CORESense looks to match the state and/or zip code of the shipping address associated to the order.

Non-POS Orders

For orders placed through the website, eBay, Amazon or the sales order interface, CORESense looks to match the zip code and/or state of the shipping address associated with the order.

Sales Tax Rules Calculation

The table below details how CORESense calculates are applied for each type of rule.

Rule	Calculation
Product Sales Tax	CORESense looks at what Product Sales Tax Rules have been assigned to the products on the order for the shipping state and/or zip code associated to the order. CORESense applies the appropriate Product Sales Tax Rule to an Orders items after all appropriate order level and item-level promotions, discounts and adjustments have been applied.
Shipping Sales Tax	CORESense looks at the shipping state and/or zip code associated with the order. Calculated on the total shipping charges for the Order.
Shipping- Taxable Items Only	CORESense looks at the shipping state and/or zip code associated with the order. Calculated on the percentage of the shipping charge allocated to the taxable order items in the order. The percentage is taken as the ratio of the taxable order items (products) selling prices to the selling prices of all order items in the order.

Multiple Tax Rules

If multiple Sales Tax Rules could apply, CORESense prioritizes the rules as follows:

Sales Tax Rules with a matching zip code and state and,
if there is no rule with a matching zip code and state it uses a rule with a matching state. If two or more rules exist with the same zip and state or state, CORESense will apply the rule with the lower rate.

Sales Tax Rules

Add a Sales Rule

Step

Action

Click Add New Sales Tax Rule.

Enter Sales Tax General Attributes and click Update.

Label - Descriptor for this Sales Tax Rule. Required.

State - State this Sales Tax Rule applies, too. Required

Rate - The Sales Tax Rate as a percentage.e.g. Enter 6.000 for 6%.

Add Zip Code - Add Zip Codes (optional) . If you had add Zip Codes, the rule will apply to the State/Zip combination.

Remove Zip Code - Remove Zip Codes (optional). Removes a Zip Code from the list.

Channels - Select Apply this rule to all channels or Apply this rule to selected channels.

Description - Internal description.

Zip Code - List of Zip Codes associated with this Sales Tax Rule.

Sales Tax Products

Add/Remove Products

Step	Action
1	Click the to select a Sales Tax Rule.
2	Click Products.
3	To assign Sales Tax Rules to a Merchandise Hierarchy products, there are two methods: Select the hierarchy path from the drop-down list Click on the to open the Merchandise Hierarchy Picker , which allows the user to select each hierarchy level individually to more quickly define the products group.
3	Click on the Add Products button to confirm Sales Tax Rule assignment to the Merchandise Hierarchy.
5	To assign a Sales Tax Rule to a single product: Enter the Product ID into the Product field Click the to access the Product Picker to search for the product
6	>Click on the Add Productsbutton to confirm Sales Tax Rule assignment to the product. As the Sales Tax Rules are associated to one or several products, the products display in the Product Listing area at the bottom on the page.
7	To remove a product, click in the Product Listing.

Sales Tax Rule Modifiers

A Modifier provides the ability to change the tax rate for a given tax rule to accommodate special tax situations like tax holidays or luxury tax thresholds. A Sales Tax Rule can have multiple modifiers.

Modifier Type - Modifier Types are created in the Back Office Technical Configurations under Sales Tax Modifier Type. The default values are:

Luxury Tax - when activated, luxury tax rate is applied at the order item level.
Tax Reduction - when activated the tax rate is reduced.
Other - User defined

Note: If a Tax Rule has multiple modifiers, they are evaluated in priority order and all that satisfy the Modify Threshold and/or Modify Schedule criteria are applied.

Follow the steps below to add modifiers to a Sales Tax Rule.

Step	Action
1	Click on the Modifiers link of the Sales Tax Rule.
2	Click on the Add Modifier button to access the Editing window.
3	Enter the information for the three fields as described below. Modifier Type - Modifier Types are created in Technical Configurations under Sales Tax Modifier Type. The default values are: Luxury Tax - when activated, luxury tax rate is applied at the order item level. Tax Reduction Other Priority - CORESense automatically sets the priority level for a Modifier based on the order in which it was created. The user can modify this value such that, for instance, a Tax Reduction is applied before a Luxury Tax threshold. Rate Modification - This value is entered as a percent (2.000 = 2.000%). It is added to the Rate of the Sales Tax Rule to which the Modifier applies. If the Rate Modification has a negative sign at the beginning, the Rate is reduced by that amount, and if it is unsigned it is increased by that amount. Rate Applied = Rate + Rate Modification: e.g. 7.000 + (-4.000) = 3.000
4	Click Update and the Modifier Type is listed in the box above. Continue to add additional modifiers as needed.
5	Click on the Modify Schedule link to specify the date and time range during which the Modifier is active.
6	Click Add Schedule to enter dates and times. Click on the calendar and clock icons to select date and time or enter them into the fields directly.
7	Click Update to finish editing the Schedule and the schedule displays in the box above. Additional schedules can be assigned to the Sales Tax Rule. Click on the next to the schedule to edit it. Click on the next to the schedule to remove it.
8	Click on the Modify Thresholds link to specify a threshold for the application of this sales tax rule. Note: for Luxury Tax type, when activated,it is applied at the order item level so the threshold needs to reflect item level value.
9	Click Set Threshold to select the Threshold Type and enter the threshold Amount. Threshold Type determines whether the order subtotals (net of order level promotions and adjustments) must be equal to, less than or greater than the numerical threshold entered in the Amount field in order for the Modifier to apply.
10	Click Save and the threshold displays in the box above. Additional thresholds can be assigned to the Sales Tax Rule. Click on the next to the threshold to edit it. Click on the next to the threshold to remove it.
11	Click Close to return to the Modifier screen.