You use this program to maintain historical tax rates for tax codes used in the USA tax system.
You can store an unlimited number of historical rates of tax previously applied to your tax codes, which enables you to comply with statutory requirements for tax rate history.
Each time you change the current tax rate using the Extended Tax Code Maintenance program, an entry is automatically added to the table of effective tax rates, to build up a history of the tax rates previously used. Therefore, once all your historical rates to date are defined, the system maintains the historical rates for you each time you change the current tax rate in the Extended Tax Code Maintenance program.
Within SYSPRO, tax routines common to all programs which calculate USA tax use the current rate, the effective date and the previous rate defined against the tax codes (see Extended Tax Code Maintenance). If, however, the date applied to the tax calculation is prior to the effective date against the tax code, then the system checks if a previous effective rate was defined using the Extended Tax History Maintenance program. If a relevant rate is found, then that rate is applied.
| Field | Description |
|---|---|
| New | Select this to add a new historical tax rate. |
| Delete | Select this to delete the entry currently displayed. |
| Save | Select this to save the details you entered or changed. |
| Tax code | Indicate the tax code for which you want to maintain
historical tax rates. Multiple historical rates can be defined against each tax code. |
| Tax | Select this to use the Extended Tax Code Maintenance program to view details of extended tax codes currently defined. |
| Field | Description |
|---|---|
| Required fields | |
| Extended tax code | This indicates the tax code for which you are maintaining historical rates. |
| Tax date |
Specify the date up to which the historical tax rates for the tax code apply. This date must be prior to the Rate effective from date defined for the current tax rate (Extended Tax Code Maintenance). |
| Details | |
| Tax rate 1 | Enter the base tax percentage applicable to state taxes. |
| Limit 1 | Enter the item value up to which the rate in the Tax rate 1 field must be applied and after which the entry in either the Value rule 1 or the Percentage rule 1 field must apply for state taxes. |
| Value rule 1 | Enter the value of state tax that must be calculated when the value in the Limit 1 field is reached. |
| Percentage rule 1 | Enter the percentage of state tax that must be calculated when the value in the Limit 1 field is reached. |
| Tax rate 2 | Enter the base tax percentage applicable to county or zip code taxes. This depends on whether you are using USA tax by advanced geocodes or the USA AVP sales tax system (Company Tax Options Setup). |
| Limit 2 | Enter the item value up to which the rate in the Tax rate 2 field must be applied and after which the entry in either the Value rule 2 or the Percentage rule 2 field must apply for county or zip code taxes. |
| Value rule 2 | Enter the value of county or zip code tax that must be calculated when the value in the Limit 2 field is reached. |
| Percentage rule 2 | Enter the percentage of county or zip code tax that must be calculated when the value in the Limit 2 field is reached. |
| Tax rate 3 | Enter the base tax percentage applicable to city taxes. |
| Limit 3 | Enter the item value up to which the rate in the Tax rate 3 field must be applied and after which the entry in either the Value rule 3 or the Percentage rule 3 field must apply for city taxes. |
| Value rule 3 | Enter the value of city tax that must be calculated when the value in the Limit 3 field is reached. |
| Percentage rule 3 | Enter the percentage of city tax that must be calculated when the value in theLimit 3 field is reached. |
This example indicates how the current, previous and historical tax rates need to be defined. For simplicity, all the tax rates (i.e. state, county/zip and city) are equal.
Assume that for Tax Code CA9000100 you currently have:
| Tax | Current sales tax rates | Effective date from | Previous sales tax rates | Defined in |
|---|---|---|---|---|
| State | 9.00 | 01/01/2008 | 8.00 | Extended Tax Code Maintenance> |
| County / Zip | 9.00 | 01/01/2008 | 8.00 | Extended Tax Code Maintenance |
| City | 9.00 | 01/01/2008 | 8.00 | Extended Tax Code Maintenance |
This means that:
You are told that the rates for Tax Code CA9000100 will change to 10% from 01/01/2009.
On 01/01/2009 you change the rates for Tax Code CA9000100 as follows:
| Tax | Current sales tax rates | Effective date from | Previous sales tax rates | Defined in |
|---|---|---|---|---|
| State | 10.00 | 01/01/2009 | 9.00 | Browse on Extended Tax Codes |
| County / Zip | 10.00 | 01/01/2009 | 9.00 | Extended Tax Code Maintenance |
| City | 10.00 | 01/01/2009 | 9.00 | Extended Tax Code Maintenance |
This means that:
However, the previous rate of 9% only applied from 01/01/2008 to 31/12/2008. Before that, the rate was 8%.
You therefore use the Extended Tax History Maintenance program to enter the following for Tax Code CA9000100:
| Tax | Tax rates | Effective date up to | Defined in |
|---|---|---|---|
| Tax rate 1 (State) | 8.00 | 01/01/2008 | Extended Tax History Maintenance |
| Tax rate 2 (County / Zip) | 8.00 | 01/01/2008 | Extended Tax History Maintenance |
| Tax rate 3 (City) | 8.00 | 01/01/2008 | Extended Tax History Maintenance |
This means that:
Once you have defined all your historical rates to date, the system maintains the historical rates for you each time you change the current tax rate in the Extended Tax Code Maintenance program.