How does DynamicZip automatically select a tax schedule?
The Assign Tax Schedule option must be selected in the DynamicZip Setup window.
DynamicZip has two methods of automatically assigning a tax schedule to a ship-to address:
- City, state, and ZIP Code method using Zip Code Tax Schedules
- State code only method using Statewide Schedules
You can choose one of the above two methods per state.
As of Build 74 this selection can be made automatically for states being imported. Single rate and zero rate states can be automatically setup to use statewide tax schedules. See Allow use of Zip Code Tax Schedules for single rate states for more information.
Tax Schedule Selection for Customer, Vendor and Site cards:
When selecting the schedule for customer, vendor and site cards, DynamicZip uses the address on the card and the Address Supplement to make the selection.
The DZ State Setup window has two fields for using statewide tax schedules. These fields are Taxable ID and Exempt ID. Enter a tax schedule ID into these fields to enable statewide tax schedules, or leave both fields blank to use ZIP Code tax schedules.
When DynamicZip automatically selects a tax schedule for a particular address, State Setup is queried to see if statewide tax schedule(s) have been specified for the state (based on the state code in the address - the ZIP Code and City are ignored).
If a statewide Taxable ID has not been specified, then DynamicZip queries the DZ Tax Schedule Supplement table to find the best match for the city, county (if known), state and zip.
If a Statewide Taxable ID has been assigned, all ZIP Code tax schedules (taxable and exempt) are ignored for this address.
If DynamicZip finds one and only one tax schedule for the address, then that tax schedule is automatically assigned. If more than one tax schedule is found, then further processes must run to determine which schedule is correct. More than one tax schedule is frequently the case, as there are usually at least two schedules (one exempt and one taxable) for every address.
The DynamicZip Customer Supplement window allows you to specify that for all addresses entered for a particular customer, DynamicZip should handle tax schedule assignments as follows:
Default: The default is to assume taxable. The end result is the same as it would be if this customer supplement record did not exist.
Taxable: This choice will cause DynamicZip to assume that the customer is taxable (i.e. disregard exempt schedules for the same address).
Exempt: This choice will cause DynamicZip to assume that the customer is exempt (i.e. disregard taxable schedules for the same address).
Ask: This choice will cause DynamicZip to override the DynamicZip Setup option to Assume Taxable for this customer. If both taxable and exempt schedules exist for this address, DynamicZip will prompt the user for the correct choice.
If DynamicZip finds more than one possible tax schedule for the current address after any limitations imposed by the DZ State Setup window and the DZ Customer Supplement window then an automatic selection will be made subject to the Tax Schedule Assignment options specified in the DynamicZip Setup window.
If an automatic selection cannot be made, then the user will be prompted to manually select the tax schedule.
If the option Show Tax Schedule Selection Message has been selected in the DynamicZip Setup window then a message box will pop up informing the user why DynamicZip was unable to automatically make the selection.
Please see Tax Schedule Selection Logic FAQ for more information.