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dynamiczip:faq:tax_schedule_selection_logic_faq

Tax Schedule Selection Logic

Build 74 and later

  1. If DynamicZip is set to Restrict Tax Schedule Selection by Country Code and the tax location has a non blank country code that does not match the country code specified in the DynamicZip Setup window for the USA or for Canada, then no schedule will be selected and the process ends here.
  2. If the tax location's ZIP Code does not match the format used by the USA or the format used by Canada, then no schedule will be selected and the process ends here.
  3. DynamicZip's DZ State Setup Table will be checked to see if the tax location's state is setup to use statewide tax schedules and if so the Taxable or Exempt ID specified in the DZ State Setup window will be selected based on the customer's Taxable Status and the process ends here.
  4. If the tax locations ZIP Code has the Plus4 extension and the DynamicZip Zip4 Option is enabled and active, then the tax location's county is identified using the DZ Plus4 Geocode table.
  5. Based on the rows in the DZ Tax Schedule Supplement Table, tax schedules are considered invalid1) if the schedule:
    • is for a ZIP Code2) that does not match the tax location ZIP Code.
    • is for a city that does not match the tax location city.
    • is for a county that does not match the tax location county.
    • is for a state that does not match the tax location state.
  6. If Select Default is selected, then the first, valid tax schedule found in the DZ Tax Schedule Supplement Table when sorted by the following values is selected.
    1. ZIP Code3)
    2. Tax Schedule ID.
  7. If Select Default is not selected and multiple valid choices exist, DynamicZip will not select a tax schedule.
  8. The customer's Taxable Status and the item's Tax Option are checked, and an exempt ID will be returned if appropriate.

Prior to Build 74

Not Using Statewide Tax Schedule

When not using Statewide Tax Schedule for the state involved:

  1. Only ZIP Code Tax Schedules are considered.
  2. Only those tax schedules whose description begins with the appropriate state code followed by the city name are considered.
  3. If the county is known (as with the ZIP+4 option), then incorrect counties are ruled out.
  4. The customer's Taxable Status is verified (From the DZ Customer Supplement window).
    • If Taxable, then Exempt Tax Schedules are ruled out.
    • If Exempt, then Taxable Tax Schedules are ruled out.
    • If Ask, then no tax schedules are ruled out based on Taxable Status.
    • If Default, then:
      • If current tax schedule is blank and Assume Taxable is selected in the DynamicZip Setup window, then exempt schedules are ruled out.
      • If current tax schedule is exempt and Preserve Exempt is selected in the DynamicZip Setup window, then taxable schedules are ruled out.
      • If current tax schedule is taxable, then exempt schedules are ruled out.
  5. If Assume in City Limits is specified in the DynamicZip Setup window, then any outside city limits schedules are ruled out.
  6. If Select Default is specified in the DynamicZip Setup window, then:
    • If the current city is not blank and is a valid option based on the ZIP Code, and tax schedules are found for the most populous county for that city and ZIP, then all others choices will be ruled out.
    • If the city is blank or is not valid, and tax schedules are found for the most populous city in that ZIP Code, then all other choices will be ruled out.
  7. If only one valid tax schedule remains for the ZIP Code, then it is selected.
    • If multiple choices remain for the ZIP Code but only one matches the city, county, state and ZIP combined, then it is selected.
    • If multiple choices remain for the ZIP Code but only one matches the full 10 character Geocode, then it is selected.
  8. If multiple choices or no choices remain and Show Tax Schedule Selection Message is specified in the DynamicZip Setup window, then you will get a message informing you why a tax schedule was not selected.
  9. If multiple choices or no choices remain and Auto Open Tax Schedule Lookup is specified in the DynamicZip Setup window, then the Tax Schedule lookup window will open positioned on the current ZIP Code.

Using Statewide Tax Schedule

When using Statewide Tax Schedule for the state involved:

  1. Only the Taxable ID and Exempt ID specified in the DZ State Setup window for the state involved are considered.
  2. The customer's Taxable Status is checked.
    • If Taxable, then the state's Taxable ID is selected.
    • If Exempt, then the state's Exempt ID is selected.
    • If Default, then:
      • If current tax schedule is blank and Assume Taxable is selected in the DynamicZip Setup window, then exempt schedules are ruled out.
      • If current tax schedule is exempt and Preserve Exempt is selected in the DynamicZip Setup window, then taxable schedules are ruled out.
      • If current tax schedule is taxable, then exempt schedules are ruled out.
    • If Ask, then no tax schedule is automatically selected.

FAQ
White Papers

1)
If only one record exists for the tax location ZIP Code, it is considered valid and selected
2)
5 digit zip for US. First letter of the postal code for CN
3)
this must match the tax location's ZIP Code
dynamiczip/faq/tax_schedule_selection_logic_faq.txt · Last modified: 2019/03/13 22:28 by conni