Vertex, Inc. · NASDAQ:VERX
Vertex — Technical Presentation (October 2004)
31 slides from Vertex's technical presentation, Oct 25, 2004
Slide 1: An Overview - Vertex Sales Tax Q Series
An Overview- Vertex Sales Tax Q Series Session P08 Monday, October 25, 2004 3:10 PM - 4:00 PM Jim Davis © 2004 Vertex Inc.
Slide 2: Introduction
Introduction Jim Davis – Senior Instructor, Vertex Inc. 2
Slide 3: Course Objectives
Course Objectives Explain the features and functions of Vertex Sales Tax Q Series Review the purpose of the Rate, GeoCoder, Register, and Tax Decision Maker databases Explain the purpose of the system components 3
Slide 4: Overview
Overview
Slide 5: System Components
System Components Databases Application Programmer’ Vertex Sales s Interface TDM Tax Q Series Resources Program 5
Slide 6: Databases
Databases GeoCod Rate er TDM Registe r 6
Slide 7: TDM Program
TDM Program Customer Product Specific Specific Any Combination Jurisdiction Specific 7
Slide 8: Application Programmer's Interfaces
Application Programmer’s Interfaces GeoCoder API – Used to assign GeoCodes to invoice address information Sales and Use Tax API – Used to calculate taxes and to return information to your host system 8
Slide 9: Reference Materials
Reference Materials Administrator’s Guide Programmer’s Guide Reference Manual User’s Guide TDM Taxability Reference 9
Slide 10: Additional Reference Materials
Additional Reference Materials Vertex Sales Tax RateLocator Vertex City-County Reference Vertex Sales Tax Topical Reference Vertex Sales Tax Reference 10
Slide 11: Component Details
Component Details
Slide 12: Databases
Databases GeoCod Rate er TDM Registe r 12
Slide 13: U. S. GeoCodes
U. S. GeoCodes 39 -- 029 -- 6350 State County City PA Chester Berwyn 13
Slide 14: Canadian GeoCodes
Canadian GeoCodes 70 -- 019 -- 0820 Country Province City CN Quebec Montreal 14
Slide 15: Importance of GeoCodes
Importance of GeoCodes Oklahoma City, Oklahoma GeoCode County ZIP Range Sales Tax Rate 37-017-0050 Canadian 73101-73132 .35 % 37-027-0050 Cleveland 73101-73132 No Tax 37-083-0050 Logan 73101-73132 1.25 % 37-109-0050 Oklahoma 73101-73132 No Tax 37-125-0050 Pottawatomie 73101-73132 1.0 %
Slide 16: Invoice Address Defaults
Invoice Address Defaults Vertex Values ST S/T and S/F Only Passed Only Passed S/T S/T S/T S/F S/T S/F O/A S/T S/F System Defaults 16
Slide 17: Methods of Using GeoCodes
Methods of Using GeoCodes Stored in host system Manual assignment Electronic assignment Accessed during invoice processing Electronic retrieval 17
Slide 18: Databases
Databases GeoCod Rate er TDM Registe r 18
Slide 19: Taxes Calculated
Taxes Calculated Vertex Sales Tax Q Series calculates state and local taxes based on the following rates: – Sales tax rates – Seller’s use tax rates – Rental/lease tax rates – Canadian service tax rates 19
Slide 20: Taxing Locations
Taxing Locations Ship-to Ship-from Order Acceptance 20
Slide 21: Interstate Transactions
Interstate Transactions Taxed at the destination Seller’s use tax rates Birmingham, AL 01-073-0150 Jackson, MS 25-049-0340 21
Slide 22: Intrastate Transactions
Intrastate Transactions Taxed at origin or destination (state statute) Sales tax rates Erie, PA 39-049-1240 Philadelphia, PA 39-101-3000 22
Slide 23: Intrastate – Origin State
Intrastate – Origin State Pennsylvania: Origin State (Order Acceptance) 6 % State Tax Ship-to Scranton, PA (39-069-3390) Order Acceptance and Ship-from Philadelphia, PA (39-101-3000) 1 % City Tax Total Sales Tax Rate = 7 % 23
Slide 24: Intrastate – Origin State
Intrastate – Origin State Pennsylvania: Origin State (Order Acceptance) 6 % State Tax Ship-to Order Acceptance Scranton, PA Erie, PA (39-069-3390) 39-049-1240 Ship-from Philadelphia, PA (39-101-3000) 1 % City Tax Total Sales Tax Rate = 6 % 24
Slide 25: Databases
Databases GeoCod Rate er TDM Registe r 25
Slide 26: Exceptions Created in TDM
Exceptions Created in TDM Customer Product Specific Specific Any Combination Jurisdiction Specific 26
Slide 27: Three-E Rule
Three-E Rule The system will tax: Everyone Everything Everywhere … at the standard rates and rules in the Rate database. 27
Slide 28: Databases
Databases GeoCod Rate er TDM Registe r 28
Slide 29: Audit Trail
Audit Trail The Register Database contains records for all the invoice transactions processed. Audit trail and management reports TAX2000 (import file) 29
Slide 30: System Workflow
System Workflow Invoices Host system Host system P.O.’s files programs Reports GeoCoder Sales and API Use Tax API Mgmt. GeoCoder Rate TDM Register Reports Database Database Database Database GeoCode Lookup TDM User TMT Register Rate Update Update Interface Update Utilities Lookup TDM reports Reports
Slide 31: Thank You!
Thank You! Please complete the session evaluation Leave your questions with a proctor Let us know how we can serve you better 31