Understanding How to Assign GeoCodes to Address Book Records

After you activate the Vertex Sales Tax Q Series system, you must assign GeoCodes to existing address book records. That is, you must set up GeoCodes for every customer, supplier, ship to address, ship from address, warehouse, or branch/plant in the address book. The Tax Decision Maker uses GeoCodes to calculate sales and use taxes for each customer and specific location.

A GeoCode is a nine-digit code that represents a taxing jurisdiction. All GeoCodes are defined and maintained by Vertex, Inc. Each GeoCode has this format:

XXYYYZZZZ where

XX = State

YYY = County

ZZZZ = City

You can assign GeoCodes to address book records manually or use a batch program. You should run the batch program first in order to automatically assign as many address book records as possible. You can use the manual process to assign a GeoCode to a new address book record.

If you use Vertex Sales Tax Q Series, the Tax Rate/Area field in the JD Edwards EnterpriseOne master and transaction tables is used to store the assigned GeoCode. Alternatively, you can use the Vertex Sales Tax Q Series system as well as the JD Edwards EnterpriseOne Tax Rate/Areas program (P4008).

Each GeoCode has a prefix of V, M, or O within JD Edwards EnterpriseOne systems:

GeoCode	Description
V (Vertex GeoCode)	A prefix of V on the nine-digit GeoCode identifies the code as a GeoCode assigned by Vertex.
M (Multicounty Situation)	A prefix of M is assigned when postal codes cross two or more county boundaries. You must review the records and manually assign the appropriate GeoCode based on the county.
O (Outside City Limits)	A prefix of O indicates that an address is not physically located within the city limits and, therefore, is not subject to city tax. You must manually change the first character of the GeoCode to O. Sales Tax Q Series does not calculate the city tax for that GeoCode.

Note:

Vertex does not define GeoCode jurisdictions outside of the U.S. and Canada and does not maintain tax rates for these jurisdictions. You can create GeoCodes, beginning each GeoCode with 77 (in the state field), to create records in TDM for each non-U.S. or non-Canadian jurisdiction.

Additionally, you can set up the Vertex TDM Override table to maintain tax rates for each non-U.S. or non-Canadian taxing authority.