Purpose: The Vertex Interface provides a bridge between CWDirect and the Vertex Sales Tax Compliance System to calculate the tax information on your orders at strategic points, such as:
• Order Entry
• Order Maintenance
• Pick Slip Generation
• Billing
In this topic:
• Work with Prestige Cities Screen (WPCA)
CWDirect references the Vertex files at these points to determine the appropriate tax rate at each stage of the order's life cycle. Vertex determines the appropriate tax rate based on the “ship-from” and “ship-to” addresses on the order.
Note: The tax rate may be calculated based on the “state and zip code,” or the “city, state and zip code” to which the order is being shipped.
The Vertex Sales Tax Compliance system stores the tax rates for each taxing jurisdiction in the United States and Canada, and provides the necessary reporting for each jurisdiction in which you sell or operate.
If you use the Vertex interface, you don't need to keep current with the tax rates and reporting requirements of each taxing jurisdiction, and you no longer have to maintain these rates on CWDirect. Also, the system does not consider any item tax exemptions set up through Working with Item Tax Exemptions (WITX). You should use Vertex to set up any tax exemptions instead.
Note: You cannot use both Vertex and tax-inclusive pricing (VAT) in the same company. See Tax Included in Price (E70) for more information on VAT.
CWDirect currently interfaces with the following Vertex sales tax products:
Vertex Sales Tax Product |
CWDirect Version Required |
Comments |
Vertex® Sales Tax L Series™ 5.0 |
release 12.0 or later |
Stores Vertex data in libraries on the iSeries. Incorporates the Windows®-based Vertex® Sales Tax Returns Q Series™ to generate signature-ready returns. |
Libraries: The following Vertex libraries are required in your library list:
• VSTAXD: the SalesTax 5.0 Data File Library
• VSTAXO: the SalesTax 5.0 Object Code Library
Note: These libraries are used for Version 5.0 of the SalesTax product. It is possible that your library names are different from these if you renamed the Vertex libraries when installing the product.
Vertex supplies these libraries when you purchase the interface.
Complete the following fields in the System Control file to use the Vertex Interface:
Vertex Interface (A88): Set this field to Y to pass sales tax information between CWDirect and the Vertex Sales Tax Compliance System.
Vertex Tax Method (A89): Select the tax calculation method you want to use. Choices are:
• CITY/ST/ZP: Vertex calculates tax for the state, county, and city and offers scans by city/state/zip. You advance to a City/State/Zip scan screen if you enter an address with an unrecognized city. The scan lists cities/states/zips phonetically similar to your entry.
• STATE/ZP: Vertex calculates tax at the state level only.
Pass Entity Code to Vertex (F69): Set this field to Y if you want the system to pass the entity code defined for the division that is associated with the source code on the order to the Vertex Interface. If you set this field to Y, the system determines whether tax is charged to the order based on the entity associated with the order.
Tax API Default Entity (L67): Enter an entity code in this field if you want to use the Tax API to obtain tax quotations before creating orders in CWDirect. For example, you can use the Tax API to obtain tax quotations when the customer is in the process of entering the order on the web storefront, but the order has not yet been created in CWDirect.
You can identify a tax exemption for a class of items by entering the Inventory Class Code in the Class field in the Item file. Class codes are defined in and validated against the Item Class file; see Merchandising Working with Item Classes (WICL).
Overview: The Vertex Interface allows order and tax information to be passed back and forth between CWDirect and Vertex at various points in the order cycle (from Order Entry to Billing).
Vertex evaluates and calculates the tax amount on the order at each phase and updates transactions appropriately.
Tax override? If the Tax override field (Future use y/n 1 field) in the Order Detail file is set to Y, Vertex does not calculate the tax amount on the order at any point in the order cycle. Instead, the system passes the existing tax amounts to Vertex at the order detail line level and updates the Transaction code field with X to indicate that Vertex should not calculate tax. The system updates the Tax override field in the Order Detail file to Y when an order passed through the Phone Interface already contains a tax amount, GST amount, or PST amount. See Using the Phone Interface.
Parameters: CWDirect passes the following parameters to Vertex:
• Merchandise dollar amount
• Freight amount (FRT)
• Additional freight (ADD FRT)
• Handling amount (HNDL)
• Duty amount (DUTY)
• Resale/Exempt certificate number
• Ship from city/state/postal code
• Ship to city/state/postal code
• Item class
• Duty
Use Vertex to set up FRT, ADD FRT, HNDL, and DUTY as non-taxable charges in the appropriate jurisdictions.
Important: When setting up the Vertex Product table (PT) in the Tax Decision File Processing menu (option 20), the Product Category/ID field must be right justified. If it is not right justified, the values will not pass back and forth between Vertex and CWDirect.
CWDirect passes tax information to Vertex during the following points in the order cycle and Vertex passes back the calculated tax amounts.
Order entry: Order Entry searches the Vertex Files to locate the appropriate tax rate for the “ship-to” address on the order. Vertex requires a “ship-to” state and postal code and a “ship-from” state and postal code to determine the tax rate it will use. The system checks the Company file for the “ship-from” address.
As you add items to the order, Vertex calculates and accumulates the tax amount if:
• no exemption exists for the item or item class in the Item Tax Exemptions file in CWDirect.
• the ship-to state is not defined as “tax exempt” in the Vertex Control File.
• there is an exemption for the item or its item class in the Item Tax Exemptions file in CWDirect, but the unit price of the item is greater than the tax “threshold” dollar amount.
• the customer is not identified as a “reseller” or “tax exempt” in the Sold To Customer file in CWDirect.
Order Entry accesses the Vertex Files as you enter each item to determine:
• the tax rate for the “ship-to” and “ship-from” state and postal code combination; the total tax rate includes any applicable state, city, and county taxes.
• whether freight, additional freight, handling, or duty charges will be included in the taxable amount on the order, based on information defined in the Vertex State file.
• how Vertex calculates the max tax, a tax that is applied to items that meet a certain dollar amount.
• To base the max tax to an item on the total price of the order line, set the max tax code in the Vertex override subtable to O. For example, Massachusetts max tax applies to clothing that is over $100.00. If an order line contains 2 clothing items whose unit price is $50.00, making the order line total $100.00, Vertex applies the max tax.
• To base the max tax to an item on the per unit price of the item on the order line and not the total price of the order line, set the max tax code in the Vertex override subtable to Q. For example, Massachusetts max tax applies to clothing that is over $100.00. If an order line contains 2 clothing items whose unit price is $50.00, Vertex does not apply the max tax. However, if the order line contains 2 clothing items whose unit price is $100.00, Vertex does apply the max tax.
The total taxable amount on the order accumulates in the TAX field as you enter each item. Then the total taxable amount is multiplied by the combined tax rate (state, city, county, and transit) determined by Vertex. You can view tax amounts and rates for individual line items at the line level on the order.
Purpose: Vertex supplies a City/State/Zip scan that appears when you enter an address with an unrecognized city name.
VTX001RP S01 6/01/95 - City Name Lookup - LEE_H DSP030302
CLINTEN is an Invalid City For State MA And Zip 01510 Use (1) to Select Correct City or Use Alternate Selection
1 City State Zip Code
_ CLINTON MA 01510 _ COLRAIN MA 01340 _ CAMBRIDGE MA 02138 _ CAMBRIDGE MA 02139 _ CAMBRIDGE MA 02140 _ CAMBRIDGE MA 02141 _ CAMBRIDGE MA 02142 _ CAMBRIDGE MA 02238 _ CUMMINGTON MA 01026 _ CUMMAQUID MA 02637 _ CONCORD MA 01742 _ CANTON MA 02021 _ CENTERVILLE MA 02632
Key in Alternate Selection: __________________________ Phonetic Search Used
Select a city or key in an Alternate Selection |
Order maintenance: Vertex recalculates the tax amount on the order when you add, change or return items in Order Maintenance.
Order Maintenance uses the same rules for tax calculation as Order Entry.
Pick slip generation: Vertex recalculates the tax amount during Pick Slip Generation for items being shipped and updates the sales tax on the pick slip appropriately. This recalculation is important if the tax rate has changed since you entered the order.
Note: The order is not updated with the new tax amount from Pick Slip Generation.
Pick Slip Generation uses the same rules for tax calculation as Order Entry.
Billing: Vertex recalculates the tax amount during Billing based on the items being billed. Vertex charges tax using the tax rate in effect when the order is billed.
Vertex also recalculates tax during Billing for each shipment on the order (for backordered items), if the tax rate changed since the last invoice on the order.
Note: The order is not updated with the new tax amounts from Billing.
Billing follows the same rules as Order Entry.
During Pick Slip Generation and Billing, Vertex uses the warehouse address from which the item shipped as the ship-from address in order to post taxes correctly. This is important, for example, if you are using zone skipping and drop points.
Example: If you ship from Texas to Louisiana, Louisiana collects the tax; however, if you ship from Houston to Austin, Houston collects the tax because you made an intrastate shipment.
Periodic Processing: Vertex does not recalculate tax during DAILY Periodic Processing.
The Standard Sales Journal contains tax information for each order billed during the day. You can include this report in your DAILY Periodic Process.
Soldouts: Vertex does not calculate tax on sold out items.
Main menu: Enter VTXM in the Fast path field at the top of any menu or select the Vertex Menu option from the menu.
VTSMENU01 10/19/98 11:04:22 R-3.4.01 V E R T E X I N C.
Sales Tax Calculation Menu
10. Load Vertex Sales Tax Update 20. Tax Decision File Processing 30. Exemption Manager Processing 40. On-Line Register Entry/Sample Entry 45. Rate Inquiry 50. Miscellaneous Report Menu 60. Register Reporting
Enter Option..... Authorization....
F3=Exit/Cancel |
More information: Refer to the Vertex manuals for more information about each option on the Vertex Sales Tax Calculation Menu or contact your Vertex representative if you have any questions about their product.
You can also use the Vertex Sales Tax Compliance system as a standalone product for comprehensive tax reporting.
Important: When setting up the Vertex Product table (PT) in the Tax Decision File Processing menu (option 20), the Product Category/ID field must be right justified. If it is not right justified, the values will not pass back and forth between Vertex and CWDirect.
Work with Prestige Cities Screen (WPCA)
Purpose: You can use the Work with Prestige Address City function to review, delete, or create city records.
Prestige cities are names for cities that differ from the standards that the postal service and Vertex use. Your customers may prefer to use a prestige address because of tradition or status. Because Vertex may not have the city name a customer prefers on file, you can use the Prestige Address City file to define alternates. When you enter, during Order Entry, an address which includes a Prestige city, Vertex does not display the City Name Lookup Screen, because the Prestige city is defined in the Prestige Address City file. However, Vertex will not add the Prestige city to the list of alternates which appears on the City Name Lookup screen when you enter an unrecognized address.
In Order Entry, when you enter an address containing a city that Vertex doesn't recognize, a pop-up window displays containing alternate cities available in Vertex for that postal code. To reject the alternates available in Vertex and add the city on the address to the Prestige Address City file, press F9 (Accepted as Entered).
Note: You cannot change a prestige city on this screen. To change, you must delete the existing city and create a new one.
How to display this screen: Enter WPCA in the Fast path field at the top of any menu, or select Work with Prestige Address City from a menu.
TXR0013 DISPLAY Work with Prestige Cities 10/19/98 9:21:53 Mail Order
Date Opt St Zip code City added
Type options, press Enter. 4=Delete
MA 01129 SIXTEEN ACRES 6/18/96 MA 02115 BACK BAY 6/20/96 MA 02121 GROVE HALL 6/20/96 MA 02158 NEWTON CORNER 6/20/96
F3=Exit F6=Create F12=Cancel F21=Print list |
Field |
Description |
St (State) |
The state where the prestige city is located. Alphanumeric, 2 positions; optional. |
Zip code |
A code that the post office uses to define a mail delivery area. Alphanumeric, 10 positions; optional. |
City |
The name of the prestige city. Alphanumeric, 25 positions; optional. |
Date added |
The date when you added the prestige city to the file. Numeric, 6 positions (MMDDYY format); optional. |
Screen Option |
Procedure |
Delete a prestige city |
Enter 4 next to a city to delete it. |
Create prestige city |
Press F6 to advance to the Create Prestige City Screen. |
How to display this screen: Press F6 at the Work with Prestige Cities Screen (WPCA).
TXR0012 ENTER Create Prestige City 10/19/98 11:11:05 KAL Company
Country . . . State . . . . Zip Code . . City . . . .
F3=Exit F12=Cancel |
Field |
Description |
Country |
The country where the prestige city is located. Alphanumeric, 3 positions; required. |
State |
The state where the prestige city is located. Alphanumeric, 2 positions; required. |
Zip code |
The zip code associated with the prestige city. Alphanumeric, 10 positions; required. |
City |
The name of the prestige city. Alphanumeric, 25 positions; required. |
| Appendices | Contents | SCVs | Search | Glossary | Reports | Solutions | XML | Index | Using the QAS Address Interface |
OE_APP_D CWDirect 18.0.x 2018 OTN