Origin Sales Tax
Origin-Based Sales Tax Configuration
Origin-based sales tax is calculated based on the seller's location, rather than the buyer's. This means that the tax rate applied to a sale is determined by where the seller operates, making it straightforward for in-state transactions but potentially different for out-of-state sales, which may follow destination-based rules.
Configuring Origin Sales Tax
To configure Origin Sales Tax, navigate to the Administrator Application → Configure → Corporate Division. Once you have selected the Corporate Division you would like to edit from the top grid, you will see the following options:
My Company Drop-Down: This is the company on which the Origin Sales Tax Rate will be based.
Use Origin Sales Tax Checkbox: This box must be checked to enable Origin Sales Tax functionality.
Select your company and check the box for Origin Sales Tax, then click Save.
Project Settings for Origin Sales Tax
When you create a new project, the checkbox for Origin Sales Tax will automatically be set to the value configured in the Administrator (checked or unchecked). If you do not have it checked in the Administrator, you can still manually check it in the project. However, My Company must be populated in the Administrator for this to work.
You can also enable Use Origin Sales Tax on an existing project if the functionality was set up after the project was created.
Tax Rate Calculation Logic
When Origin Sales Tax is enabled, the “Tax Rate” field in the BOM will be populated based on the following logic:
If Origin Company State = End User State:
Sales Tax Rate = Origin Company Sales Tax RateIf Origin Company State ≠ End User State:
Sales Tax Rate = End User Sales Tax Rate
Sales Tax Report
To generate the sales tax report with the correct Origin Sales Tax information, you must select a Corporate Division from the drop-down menu. The report cannot be run for all divisions at once and must be generated separately for each division.
Projects using Origin Sales Tax will be automatically categorized under the “Origin” company.
