tax user guidetax user guide v this document is intended to act as a supplement to the baan online...

BaanErp

Tax User Guide

A publication of:

Baan Development B.V.P.O.Box 1433770 AC BarneveldThe Netherlands

Printed in the Netherlands

© Baan Development B.V. 1999.All rights reserved.

The information in this documentis subject to change withoutnotice. No part of this documentmay be reproduced, stored ortransmitted in any form or by anymeans, electronic or mechanical,for any purpose, without theexpress written permission ofBaan Development B.V.

Baan Development B.V.assumes no liability for anydamages incurred, directly orindirectly, from any errors,omissions or discrepanciesbetween the software and theinformation contained in thisdocument.

Document Information

Code: U7250A USGroup: User DocumentationEdition: ADate: July, 1999

i

Tax User Guide

1 Introduction 1-1Basic tax handling 1-1Destination sales tax 1-1Tax Provider interface 1-2

2 Basic tax handling 2-1Overview 2-1Tax tables 2-3Tax authority groups 2-3Tax authority codes 2-4Tax codes 2-5Tax codes by country 2-6Financial data for tax codes 2-10Tax-related parameters 2-11Group Company Parameters (tfgld0101m000) 2-11ACR Parameters (tfacr0100m000) 2-11ACP Parameters (tfacp0100m000) 2-12CMG Parameters (tfcmg0100s000) 2-12Sales Order Parameters (tdsls4100m000) 2-14Tax-related master data 2-14Chart of Accounts (tfgld0108m000) 2-14Posting Data by Tax Code (tfcmg0150m000) 2-14Item - Sales (tdisa0101s000) 2-14Item - Sales Defaults (tdisa0102s000) 2-14Item - Purchase (tdipu0101s000) 2-14Item - Purchase Defaults (tdipu0102s000) 2-15Countries (tcmcs0110m000) 2-15Tax processing sessions 2-15Update tax rates by tax authority 2-15Allocate tax on matched purchase invoices 2-16Change tax amounts and accounts 2-16Tax analysis reports 2-16Display tax analysis 2-16Print tax analysis 2-16Print tax analysis (suppliers or customers) 2-16Print yearly tax report (suppliers or customers) 2-17Print tax summary by tax authorities 2-17

Table of contents

Table of contents

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3 Destination sales tax 3-1Overview 3-1Destination sales tax tables 3-3Tax codes by country 3-3Tax code defaults 3-3Exceptions by tax location 3-6Tax code default derivation logic 3-7Tax exemptions for sales 3-9Tax exemption analysis 3-10Destination sales tax parameters 3-10COM Parameters (tccom0000m000) 3-10ACP Parameters (tfacp0100m000) 3-11Destination tax-related master data 3-11Integration mapping schemes 3-11Destination sales tax processing 3-13Test tax structure 3-13Purchase expense tax 3-14Cost purchase invoices 3-14Matched purchase invoices 3-14Purchase tax reports 3-15

4 Tax Provider interface 4-1Overview 4-2Static data 4-5Dynamic data 4-5Tax provider tables 4-6Countries (tcmcs0110m000) 4-6Country tax provider register 4-6Product categories 4-7Product category tax matrix 4-8Print product categories 4-9Print product category tax matrix 4-10Contract Types (tssma2124m000) 4-10Tax Provider parameters 4-10Tax Provider parameters 4-10API parameters 4-13Tax provider setup 4-14Tax jurisdiction 4-14Tax provider exception setup 4-19Tax provider tax processing 4-19Tax calculations for tax provider 4-19Tax summary 4-24Tax provider calculation utility 4-24

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Finance transactions 4-26Tax provider tax reporting 4-27Line tax information 4-27Tax provider’s tax register 4-27Tax provider technical design 4-27

5 Conversion considerations for tax provider 5-1Preconversion steps 5-1Conversion steps 5-4Post conversion considerations 5-10Technical implementation considerations 5-10

6 Tax Provider interface installation guide 6-1Installation prerequisites 6-1Software requirements 6-1Experience requirements 6-1Tax provider overview 6-2TAXWARE 6-2Quantum 6-3Environmental variables 6-4TAXWARE and Quantum environmental variables 6-4Baan Tax API installation on UNIX 6-6Edit makefile 6-6Set environmental variables 6-7Baan Tax API installation on Windows NT 6-10Link tax provider functions 6-10Set environmental variables 6-10Testing installation 6-11Post installation tuning 6-12API time-out environmental variables 6-12Communications on UNIX 6-12Communications on Windows NT 6-13Shared memory 6-13Debug capability 6-13TAXWARE 6-13Vertex 6-13

7 Frequently asked questions 7-1General tax provider questions 7-1TAXWARE specific questions 7-3Vertex specific questions 7-4

8 Troubleshooting 8-1

9 Glossary 9-1

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10 Appendix A: Sample invoice 10-1

11 Appendix B: Error codes 11-1

12 Appendix C: Tax provider functions 12-1

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This document is intended to act as a supplement to the Baan online Help. Itprovides additional guidance for sales tax features available in Baan. Thisincludes set up of master data, as well as calculation and reporting of sales taxdata.

The Tax Provider interface is also covered in this document. However, specificdetails related to the use and installation of Tax Provider partner software mustbe directed to the Vertex or TAXWARE support organizations.

About this document

About this document

Tax User Guide

vi

Tax User Guide

1-1

Baan provides basic sales tax functionality for all customer and suppliertransactions. General features of sales tax in Baan include tax code and ratedefinition, determination of tax code defaults, tax calculation, and tax analysisreporting. Flexibility is available when you define the method of processing andcalculation through various parameters and tables.

Sales tax handling in Baan can be broken down into the following categories:

n Basic tax handlingn Destination sales taxn Tax Provider interface

Basic tax handlingBasic tax handling consists of the set up of parameter and table data as well asbasic tax calculation and reporting for a simple tax environment. Destinationsales tax and the Tax Provider interface build on the basic tax handling data andprocesses available in order to handle a more complex tax environment.

Destination sales taxDestination sales tax is intended to meet the needs of those countries that do notuse the VAT method of taxation on sales, such the United States. Withdestination sales tax, a link is established between the GEO code of a deliveryaddress and a related default tax code. Destination sales tax processing alsoincludes the purchase expense tax feature, which allows tax amounts to beexpensed to the same account as the purchase, rather than to an accrual accountas in the VAT method.

1 Introduction

Introduction

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Tax Provider interfaceThe Tax Provider interface is specifically intended for United States andCanadian users. The partner products that are interfaced are Vertex’s QuantumFor Sales and Use Tax and TAXWARE’s SALES/USE Tax System.

When you use the Tax Provider interface, Baan tax codes only determine postingaccounts. The tax provider makes all determinations of tax rates and amountsbased on the addresses and product information passed by Baan. Special sessionsare available in the Common Parameters menu for API Parameters and TaxProvider Parameters. In addition, the NA Tax Handling menu is available inGeneral Data to set up the tax provider information.

This document explains the procedures for setup and usage of the sales taxfeatures in Baan. The information is grouped into the three categories previouslymentioned. Answers to frequently asked questions and hints for troubleshootingare additionally included at the end of the document.

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Basic tax handling covers the general setup and procedures to maintain basic taxinformation in Baan. This includes the following types of data:

n Tax tablesn Tax-related parametersn Tax-related master data

This data has an impact on tax calculation and reporting, regardless of whetherdestination sales tax or the Tax Provider interface is activated.

Basic tax processing and reporting procedures are also covered in this chapter.

OverviewThe taxability of a transaction is determined in Baan based on tax codes. If no taxcode is referenced on the document header or line, the transaction is not taxable.If a tax code is referenced, the transaction is taxable and the specified tax codedetermines the method of handling the tax. The tax code also determines the taxamount when the Tax Provider interface is not activated. Tax codes default basedon the item for transactions in Logistics, but you can modify them. Changing theitem code on a transaction automatically triggers a rederivation of the tax codebased on the newly entered item.

2 Basic tax handling

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Create Tax Codes

Assign Tax Codesto Items

Define Tax Codesby Country

Process Orders,Invoices, Etc

Display/Print TaxAmounts

Create TaxAuthority Groups

Create TaxAuthorites

Figure 1, Basic tax flow

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Tax tablesA Tax Tables menu in the Common module contains the sessions that you use todefine the basic tax information for a company in Baan. The data defined here isused for taxable transactions throughout Baan.

Tax authority groups

Use the Tax Authority Groups (tcmcs1140m000) session to identify the type oftax authorities for which tax is collected. The tax authority groups are used fordata selection and to sort tax analysis reports, so they must be created tocorrespond with the desired breakdown of information for these reports. Forexample, if information is desired by state, tax authority groups must correspondwith states.

Figure 2, Tax Authority Groups (tcmcs1140m000)

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Tax authority codes

Use the Tax Authorities (tcmcs1137m000) session to identify specific taxauthorities and assign them to a Tax Authority Group. Tax authorities are usedfor data selection, to sort tax analysis reports, and for mass update of tax ratesand summarization of tax amounts on orders and invoices.

Figure 3, Tax Authorities (tcmcs1137m000)

Tax authorities have limited usability when the Tax Provider interface isactivated.

NOTE

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Tax codes

Use the Tax Codes (tcmcs0137m000) session to define valid tax codes for acompany. The details related to use of the tax code are maintained in separatesessions.

Figure 4, Tax Codes (tcmcs0137m000)

In general, tax codes must correspond to the lowest level tax jurisdiction that istracked in Baan. (For example, tax codes correspond to cities if there is sales taxat the city, county, and state levels. Tax codes correspond to counties if there isno sales tax at the city level, but there is county and state sales tax.)

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Tax codes by country

Use the Tax Codes by Country (tcmcs0536m000) session to access varioussessions that define the details related to the use of a tax code in a particularcountry.

Figure 5, Tax Codes by Country

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The ledger accounts and dimensions to be used to post tax amounts are specifiedin the Tax Codes by County (tcmcs0136s000) session, as well as several otheroptions that control the method for handling tax.

Figure 6, Tax Codes by County (tcmcs0136s000)

Tax type: The tax type can be Normal, Shifted, or On Payments. For a Normaltax type, tax is calculated and added to the invoice total and tax account at thetime of creation. For a Shifted tax type, tax is calculated as normal, but not addedto the BP’s invoice total. Instead, the tax amount goes to a contra account forlater handling. For an On Payments tax type, the tax is calculated as normal, butan interim account is used instead of the normal tax account at the time ofcreation. At the time of payment, the tax amount is transferred from the interimaccount to the normal tax account.

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Tax authority: A tax authority can be specified at each tax code or tax codelevel. This is used for reporting summary information on external documentswhen the related country indicates. It is also used for data selection and to sortreports in the General Ledger Tax Analysis.

As illustrated in Figure 7, several subsessions are started through the Tax Codesby Country (tcmcs0136s000) session to further define tax data.

No

Enter Tax Codesby Country

Singular?Enter Multiiple Tax

Code Lines

Enter Single TaxRates

Enter Multiple TaxRates

Yes

Figure 7, Define tax codes by country

Multiple tax codes

Use the Multiple Tax Code Lines (tcmcs0135s000) session to define certain taxdetails for Multiple Tax Codes (the Singular Tax check box is not selected in theTax Codes by Country (tcmcs0136s000) session). In this case, multiple sequencenumbers can be assigned to a single combination of country and tax code todifferentiate tax amounts for various jurisdictions. Tax can be calculatedindividually (parallel) for each sequence number or inclusive of the taxcalculated on previous sequence numbers (cumulative).

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Single and multiple tax rates

Use the Single Tax Rates (tcmcs0132m000) and Multiple Tax Rates(tcmcs0133m000) sessions to define tax rate data.

n Use the Single Tax Rates (tcmcs0132m000) session when the Singular Taxcheck box is selected in the Tax Codes by Country (tcmcs0136s000) session.

n Use the Multiple Tax Rates (tcmcs0133m000) session if the Singular checkbox is not selected.

In either case, the following fields are defined per effective date:

n Tax Ratesn Maximum Tax Amountn Tax Base Amountn Rate for Excess

Figure 8, Single Tax Rates (tcmcs0132m000)

The defined tax rate is applied to taxable amounts up to the tax base amount,subject to the maximum tax amount. The rate for excess is applied to taxableamounts that exceed the tax base amount, also subject to the maximum taxamount.

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For example, the tax calculations in the following table would result from thefollowing data:

n Tax rate = 10%n Maximum tax amount = $10,000n Tax base amount = $50,000n Rate for excess = 5%

Order Amount 10,000 100,000 1,000,000

Amount subject to tax base amount of 50,000 10,000 50,000 50,000

10% Tax rate on base amount 1,000 5,000 5,000

Amount above tax base of 50,000 0 50,000 950,000

5% Excess tax rate applied 0 2,500 47,500

Total of base and excess tax amounts 1,000 7,500 52,500

Maximum tax amount 10,000 10,000 10,000

Calculated tax amount (lower of total or max) 1,000 7,500 10,000

Financial data for tax codes

The ledger accounts and dimensions that are used to post tax amounts are definedin the Financial Data for Tax Codes by Country (tfgld0171s000) or the FinancialData for Multiple Tax Code Lines (tfgld0170s000) session, depending on thesetting of the Singular Tax check box in the Tax Codes by Country(tcmcs0136s000) session.

Figure 9, Financial Data for Multiple Tax Code Lines (tfgld0170s000)

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The Purchase and Sales Tax Account fields are always accessible, as are theAdvance Payment accounts. The On Payment accounts are only accessible whenTax Type is set to On Payments in the Tax Codes by Country (tcmcs0136s000)session. Also, the shifted tax accounts are only accessible when Tax Type is setto Shifted in the Tax Codes by Country (tcmcs0136s000) session.

Tax-related parametersThere are parameters throughout Baan that have an impact on the way tax iscalculated. These parameters are identified and explained in this section.

Group Company Parameters (tfgld0101m000)

The Number of Tax Periods parameter determines the number of periods to bedefined in the calendar for the Period Type of Tax.

n Periods are defined in the Maintain Periods (tfgld0105m000) session.

n These periods are used in tax analysis reporting.

ACR Parameters (tfacr0100m000)

The Level of Tax Calculation (Invoice Header/Transaction Line) parametercontains the default value for the Level of Tax Calculation field on the ManualSales Invoice header in the Accounts Receivable module.

n The default value can be modified during invoice creation or maintenance ifno invoice lines are present.

n A value of Invoice Header for this field indicates that tax is calculated basedon the total invoice amount and the tax code entered on the invoice header.

n The Invoice Line Tax Code and Amount fields are not accessible when thetax calculation level is Invoice Header.

n A value of Transaction Line for this field indicates that tax is calculatedindividually for each line based on the amount for that line and for the taxcode entered on that line.

n The Invoice Header Tax Code and Amount fields are not accessible when thetax calculation level is Transaction Line, but the Invoice Header Tax Amountfield is filled with the sum of the invoice line tax amounts.

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ACP Parameters (tfacp0100m000)

The Level of Tax Calculation (Invoice Header/Transaction Line) parametercontains the default value for the Level of Tax Calculation field on the PurchaseInvoice header in the Accounts Payable module.

n The default value can be modified during invoice creation or maintenance ifno invoice lines are present.

n A value of Invoice Header for this field indicates that tax is calculated basedon the total invoice amount and the tax code entered on the invoice header.

n The Invoice Line Tax Code and Amount fields are not accessible when thetax calculation level is Invoice Header.

n A value of Transaction Line for this field indicates that tax is calculatedindividually for each line based on the amount for that line and the tax codeentered on that line.

n The invoice header tax code and amount fields are not accessible when thetax calculation level is Transaction Line, but the invoice header tax amountfield is filled with the sum of the invoice line tax amounts.

CMG Parameters (tfcmg0100s000)

The Calculate Tax on Advance Payments/Receipts (Y/N) parameter indicateswhether tax is charged on advance payments. If this check box is selected, tax ischarged whenever the advance payment amount is greater than the value definedfor the Minimum Amount for Tax Calculation parameter.

The Minimum Amount for Tax Calculation parameter is only available when theCalculate Tax on Advance Payments check box is selected. Tax is only chargedfor advance payments that exceed the specified amount.

The Adjust Tax for Deductions (Y/N) parameter controls whether deductions(discount, late payment surcharge, or payment difference) taken at the time ofreceipt/payment of an invoice result in an adjustment to the tax amountrecognized for that invoice.

n When the check box is selected, tax is adjusted to correspond with thepayment amount adjustment.

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n When the check box is not selected, no tax adjustment is performed. Forexample, an invoice is created with the following details:

Invoice Number ACR19980001

Amount USD 5000.00

Tax code/country USA / 001

Tax amount USD 350.00

Discount available USD 100.00

Due date 12/31/98

In this example the tax amount is calculated on the gross amount of$5,000.00 which includes the discount.

At the time of receipt (assume the invoice was paid before the due date), thefollowing transaction is recorded:

Amount received USD 4860.00

Discount USD 100.00

Payment difference USD 40.00

The customer only paid $4860.00, but at the time of the invoice, tax wascalculated on the total gross amount ($5000.00). This means tax wascalculated on an amount of $140 (sum of all deductions) greater than theactual sale amount.

If the Adjust Tax for Deductions check box is selected, a reversal entry iscreated to offset the entry that was recorded at the time the invoice wascreated.

The Ledger Account for Deductions by (Tax Code/Customer Supplier Group)parameter controls whether ledger accounts for discounts, late paymentsurcharges, and payment differences are defined by tax code or bycustomer/supplier group.

n The Tax Code option is only available when the Adjust Tax for Deductionscheck box is selected.

n If so, use the Posting Data by Tax Codes (tfcmg0150m000) session to specifythe correct accounts.

n If not, use the Ledger Accounts by Business Partner Groups session tospecify the correct accounts. The codes are tfacr111m000 for customertransactions and tfacp0111m999 for supplier transactions.

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Sales Order Parameters (tdsls4100m000)

The Apply Tax to Installments (Y/N) parameter indicates whether tax can becharged on installments.

n If this parameter is selected, tax is charged on the instalment amount and thenlater deducted from the total tax amount when the goods are invoiced.

n If this parameter is not selected, no tax is charged until the goods areinvoiced.

Tax-related master data

Chart of Accounts (tfgld0108m000)

The Default Tax Code field associates a specific tax code with a particular ledgeraccount.

n Whenever the ledger account is referenced in a journal entry, the default taxcode is automatically filled.

n This is an optional field.

Posting Data by Tax Code (tfcmg0150m000)

The Posting Data by Tax Code session is only accessible if the Ledger Accountfor Deductions by parameter is Tax Code in the Maintain CMG Parameterssession. If so, ledger accounts for discounts, late payment surcharges, andpayment differences are defined by tax code.

Item - Sales (tdisa0101s000)

The Tax Code field contains the default tax code on any sales transactions for therelated item.

Item - Sales Defaults (tdisa0102s000)

The Tax Code field contains the default tax code items created in the Item-Sales(tdisa0110s000) session for the related item type and item group combination.

Item - Purchase (tdipu0101s000)

The Tax Code field contains the default tax code for any purchase transactionsfor the related item.

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Item - Purchase Defaults (tdipu0102s000)

The Tax Code field contains the default tax code items created in the Item –Purchase (tdipu0110s000) session for the related item type and item groupcombination.

Countries (tcmcs0110m000)

The Print Tax by Tax Authority check box controls whether or not a summarybox is printed at the footer of orders and invoices to show the breakdown of taxamounts by the tax authority.

The Print Tax Exemptions check box controls whether or not a summary box isprinted at the footer of orders and invoices to show tax exemption data.

If both the Print Tax Authority and Print Tax check boxes are selected, both areprinted in a single summary box.

Tax processing sessions

Update tax rates by tax authority

Use the Update Tax Rates by Tax Authority (tcmcsl201m000) session to performa mass change of tax rates for various tax codes with the same associated taxauthority code. Tax rates are updated for the specified effective date.

Figure 10, Update Tax Rates by Tax Authority (tcmcs1201m000)

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Allocate tax on matched purchase invoices

Use the Tax Transactions (tfacp1112s000) session to allocate tax amounts amongmultiple tax codes in the case where the invoice is matched to orders and thelevel of tax calculation is Transaction Line.

Change tax amounts and accounts

Purchase invoices

Use the Tax Codes by Line (tgld1109s000) session to change tax rates andamounts, as well as tax accounts and dimensions for purchase invoices.

Standing orders

Use the Tax Ledger Accounts (tfcmg1139s000) session to change the taxaccounts and amounts for standing orders that have a cost type. Standing ordersare maintained in the Standing Orders (tfcmg1110m000) session of the SupplierPayments Processing menu.

Tax analysis reports

Display tax analysis

The Display Tax Analysis (tfgld1520m000) session displays tax information bydocument line for a combination of country, tax code, and year.

Print tax analysis

The Print Tax Analysis (tfgld1420m000) session prints tax information for arange of tax codes, tax periods, or transactions, in addition to various otherselection criteria. The tax authority code and group data can be used as selectioncriteria for this report and is also included with other tax data on the printedreport.

Print tax analysis (suppliers or customers)

The Print Tax Analysis, Suppliers (tfgld1430m000) and the Print Tax Analysis,Customers (tfgld1431m000) sessions print a summary or detailed report for arange of tax codes, periods, and transaction types.

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Print yearly tax report (suppliers or customers)

The Print Yearly Tax Report, Suppliers (tfgld1432m000) and the Print YearlyTax Report, Customers (tfgld1433m000) sessions print tax information for arange of countries, suppliers/customers, and tax numbers, subject to a minimumamount.

Print tax summary by tax authorities

Use the Print Tax Summary by Tax Authorities (tfgld8401m000) session to printtax totals by tax authority and by authority group.

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Destination sales tax features include the following:

n Default of tax code based on delivery address and defined exceptionsn Tax exemptions for sales by business partner and tax authorityn Tax exemptions for purchases by country and tax coden Rederivation of tax code on document line after change of addressn Expense sales tax on purchases

OverviewDestination sales tax adds additional features to the foundation of basic taxhandling. Tax calculation is unchanged, but tax code defaults, tax accounts, andtax reporting are impacted by the additional functionality.

Destination sales tax is activated in the COM Parameters (tccom0000m000)session.

Figure 11, COM Parameters (tccom0000m000)

3 Destination sales tax

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The basic flow for set up of data in the destination tax environment is as follows:

Create Tax Codes

Define Tax CodeDefaults





Create TaxAuthorites

Figure 12, Destination tax flow


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Differences between the basic tax flow and destination tax flow are as follows.

Destination sales tax tables

Tax codes by country

An expense tax check box is available at both the singular and non singular taxcode levels when the Destination Sales Tax parameter has been activated. Whenthis check box is selected, the purchase tax account becomes an interim accountused only for registration of matched purchase invoices. Amounts posted to thisaccount during registration are reclassed during approval to the purchase expenseaccount, based on the purchase order line data. The account is not used at all formiscellaneous purchase invoices that post tax amounts directly to the purchaseaccount.

Tax code defaults

Tax codes default according to the mapping defined in certain tax tables whenthe Destination Sales Tax parameter has been activated. The general default isderived from the Tax Codes by GEO Code (tcmcs1136m000) session. The GEOcode of the delivery address determines the appropriate tax code in this case.This default can be overridden by the Exceptions for Taxes or Exceptions by TaxLocation. If no defaults are defined for a particular location, the item codeprovides a default tax code.


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Tax codes by GEO code

Use the Tax Codes by GEO Code (tcmcs1136m000) session to assign tax codesto ranges of GEO codes per country. The lower limit of the range is determinedby the user-defined From value and upper limit of the range is determined by theTo value derived by Baan based on the next defined From value. The tax codesassigned here are used unless exceptions are defined to override them.

Figure 13, Tax Codes by GEO Code (tcmcs1136m000)

GEO codes are defined when the Tax Provider interface is not activated. Anycode can be used as long as it corresponds to those codes defined in the deliveryaddresses of orders, quotes, and so on.

NOTE


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Exceptions for taxes

Use the Exceptions for Taxes (tcmcs1138m000) session to define specific taxexceptions by ship-from or ship-to business partner and item or item group.Exceptions defined in this session override the data defined in the Tax Codes byGEO Code (tcmcs1136m000) session.

Figure 14, Exceptions for Taxes (tcmcs1138m000)


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Exceptions by tax location

Use the Exceptions by Tax Location (tcmcs1139m000) session to defineadditional exceptions by origin and acceptance address GEO codes. Exceptionsdefined here in this session override the data defined in the Tax Codes by GEOCode (tcmcs1136m000) session.

Figure 15, Exceptions by Tax Location (tcmcs1139m000)

For the tax code default, the origin GEO code relates to the ship- from address ofthe document line. The acceptance address refers to the location where thedocument was accepted by the seller. The determination of these addresses, aswell as the ship-to address is described in the following section.


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Tax code default derivation logic

The procedure that is used to derive default tax codes in the destination sales taxenvironment is as follows:

Derivation of ship-to GEO code

In general, the tax code is derived based on the GEO code of the destination(delivery) address. The hierarchy that is used to determine the appropriateaddress is shown below for the various modules of Baan.

For Sales Order Control (SLS), Service Order Control (SMA), InventoryHandling (INH):

1 GEO code from delivery address

2 GEO code from business partner address

For Purchase Order Control (PUR):

1 GEO code from delivery address

2 GEO code from own warehouse address

3 GEO code from own address from company

If no exceptions apply, the tax code assigned to the GEO code defaults on theorder, quote, contract, and so on.

There are two methods that can be used to define exceptions:

n Exceptions for taxes

n Exceptions by tax location

Exceptions for taxes take priority over exceptions by tax location. If neither typeof exception exists, the delivery GEO code alone determines the default tax code.If no exceptions and no tax code are assigned to the GEO code, the tax code ofthe item is used as a last resort.


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Exceptions for taxes

Exceptions for taxes can be defined for country, business partner, item or itemgroup and destination GEO code. Use the Exceptions for Taxes(tcmcs1138m000) session to define these exceptions.

Baan searches for defined exceptions, using country code and the combinationsof other options, in the following order priority:

1 Country, business partner, item, item group and GEO code2 Country, business partner, item, GEO code3 Country, business partner, item, item group4 Country, business partner, item5 Country, business partner, item group, GEO code6 Country, business partner, item group7 Country, business partner, GEO code8 Country, business partner9 Country, item, item group, GEO code10 Country, item, GEO code11 Country, item, item group12 Country, item13 Country, item group, GEO code14 Country, item group15 Country, GEO code16 Country

Exceptions by tax location

Exceptions by location can be defined for a combination of destination GEOcode and origin GEO code and/or order acceptance GEO code.

Baan searches for defined exceptions, using country code and destination GEOcode along with the combinations, in the following order of priority:

1 Origin GEO code and order acceptance GEO code2 Origin GEO code3 Order acceptance GEO code


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Tax exemptions for sales

Reasons for tax exemptions

Use the Reasons (tcmcs0105m000) session to define reason codes for the type oftax exemption to be used when you define sales tax exemption data.

Figure 16, Reasons (tcmcs0105m000)


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Use the Tax Exemptions for Sales (tcmcs1142m000) session to define a sold-tobusiness partner as exempt in the jurisdiction of a given tax authority. Any taxamounts for a sold-to business partner/tax authority combination defined asexempt are automatically calculated as zero. The tax authority is taken from thetax code referenced on the order or invoice. Exemptions defined in this sessionare only considered when the Tax Provider interface is not active.

Figure 17, Tax Exemptions for Sales (tcmcs1142m000)

Tax exemption analysis

Use the Print Tax Exemption Analysis (tfgld8410m000) session to print detailedtax exemption information by tax code, tax authority, or authority group.

Destination sales tax parameters

COM Parameters (tccom0000m000)

The Destination Sales Tax Applicable parameter controls whether destinationsales tax features are used.

n If this parameter is activated, tax codes default according to the mappingsdefined in the Tax Codes by GEO Codes (tcmcs1136m000), Exceptions forTaxes (tcmcs1138m000), Exceptions by Tax Location (tcmcs1139m000)sessions.

n If not, tax codes default from the item code.


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ACP Parameters (tfacp0100m000)

The ledger account and dimensions specified in the Tax VarianceAccount/Dimensions field are used in the event of a discrepancy in tax amountsduring the approval of matched purchase invoices. This procedure is described indetail in another section of this document.

Destination tax-related master data

Integration mapping schemes

Use the Integration Mapping Scheme (General) (tfgld4500m000) and IntegrationMapping Scheme (Manufacturing/Distribution) ( tggld4501m000) sessions todefine the debit ledger accounts and dimensions to post transactions with theTransaction Origin of Purchase and Financial Transaction of Expense Tax fields.

Use the accounts and dimensions defined in the latter session to reclassifypurchase expense tax amounts during the purchase invoice approval process.Expense tax processing is described in more detail in another section of thisdocument.

Figure 18, Integration Mapping Scheme (General) (tfgld4500m000)


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Figure 19, Integration Mapping Scheme (Manufacturing/Distribution) (tfgld4501m000)


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Destination sales tax processing

Test tax structure

Use the Test Tax Structure (tcmcs1199m000) session to verify that the tax codedefaults have been defined correctly. Fill in business partner, item, and GEOcode information and Baan retrieves the default tax code as per the mappingsspecified in the Tax Codes by GEO Code (tcmcs1136m000), Exceptions forTaxes (tcmcs1138m000), and Exceptions by Tax Location (tcmcs1139m000)sessions.

Figure 20, Test Tax Structure (tcmcs1199m000)


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Purchase expense taxPurchase expense tax applies to Accounts Payable invoices only. It refers to thepractice of expensing tax amounts charged on a purchase as part of the expenseof that purchase, rather than charging it to a tax account. For instance, officesupplies purchased for $100 with an applicable tax of $7.50 would result in anexpense of $107.50 to the Office Supplies account under the purchase expensetax method.

Purchase expense tax is triggered by the use of a tax code with the Expense Taxcheck box selected. Both matched and cost purchase invoices can use thepurchase expense tax feature, although the circumstances that trigger thefunctionality are slightly different. The following sections explain the use ofpurchase expense tax in various scenarios.

Cost purchase invoices

When a purchase invoice with an invoice type of Cost Invoice is set to CalculateTax at the transaction line level and the selected tax code is checked for expensepurchase tax, tax amounts automatically post to the same account as the purchaseinvoice line. This account can be changed in the same way as non expensed taxcodes are changed when you zoom to the Tax Codes by Line (tfgld1109s000)session. When the tax code is not expensed, the tax account is the same as thepurchase tax account on the tax code.

Cost purchase invoices can be entered with the Purchase Invoices(tfacp1110s000) and the Purchase Invoice Transactions (tfacp1120s000)sessions.

Matched purchase invoices

When a purchase invoice with an invoice type of Invoice Related to Orders is setto Calculate Tax at the invoice header level and the entered tax code is checkedfor expense purchase tax, the tax amount is reclassed in the approval transaction.Tax posts to the interim tax account from the tax code initially. This interim taxposting is reversed and the tax amount based on the matched purchase receipt isrecorded during the approval. The account that is used to record this tax isderived from the integration mapping scheme for the transaction origin of thepurchase and financial transaction of the expense tax.

In the case where the item matched is from the item group of cost items to bespecified, the tax amount is reclassed to the account specified for the item duringmatching.


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Any variances between the tax amount originally recorded at registration and thetax amount calculated based on the matched purchase receipt lines are posted to avariance account specified in the ACP parameters.

Reports are provided to show the amounts that are still in the interim tax account,as well as amounts that have been reclassed (this includes variance information).

Purchase tax reports

Print registered purchase invoices

Use the Print Registered Purchase Invoices (tfacp1433m000) session to printpurchase invoices that have been registered or matched, but not yet approved.Expensed tax amounts are displayed along with other invoice data.

Print interim purchase tax account transactions

Use the Print Interim Purchase Tax Account Transactions (tfacp2435m000)session to print amounts in the interim purchase tax account for the invoices thathave been registered or matched but not yet approved.

Print expenses purchase tax data

Use the Print Expenses Purchase Tax Data (tfacp2436m000) session to verify theamounts and accounts used in the reclass for the purchase invoices that havebeen matched or approved.


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Tax User Guide

4-1

An interface was developed between Baan and two third-party tax providers,TAXWARE’s SALES/USE Tax System or Vertex’s Quantum for Sales and UseTax for United States (U.S.) and Canadian taxes. The Tax Provider interface isoptional and if used, the tax provider performs tax computations and provides taxregisters for auditing and tax reporting purposes.

The Tax Provider interface includes the following features:

n Online API used for communication between Baan and the tax provider foraddress verification, jurisdiction checking, and calculation of tax amounts.

n Utilities that are used to convert existing addresses to the correct format andverification of jurisdiction

n User-defined product category information passed to the tax provider forcorrect rate determination

n Line-based tax calculation

4 Tax Provider interface

Tax Provider interface

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OverviewThe Tax Provider interface accesses Vertex or TAXWARE for all taxcalculations, rather than using the Baan tax rates. Relevant information related toaddresses, product categories, and customer/supplier, is passed from Baan andthe appropriate tax information is passed back from the tax provider. The generalflow for the Tax Provider interface is illustrated in the following figure:

Create Tax Codes

Define Tax CodeDefaults





Create TaxAuthorites Create Prduct

Categories

Define Mapping ofProduct Category

Matrix

Register Countriesfor Tax Provider

Conver Addressesto Proper Format

Verify GEO Codes

Figure 21, Tax provider flow

All Baan modules with tax calculation functionality use the interface. However,the ability to update the tax provider tax register is provided only for invoicesgenerated through the Central Invoicing module. Update is not currentlyavailable from purchase invoices or finance transactions.


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The interface consists of the following components, that are described in moredetail later in this document:

n Tax provider parametersn Tables for tax providern Address verification for tax providern Tax calculations for tax providern Tax impact on sales installments for tax providern Conversion considerations for tax providern Technical implementation considerations

When the Tax Provider interface is activated, the following functionality iscarried out by the tax provider and is therefore not available in Baan:

n Tax exemption processing for sales based on a combination of BP and taxauthority (tax exemptions can be specified by sales document line, however)

n Multilevel tax processing

n Tax-rate definition and tax computation


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An overview of the communication provided by the Tax Provider interfacebetween Baan and the tax provider is illustrated in the following figure.

TAX ProviderBAAN ERP

citystatezip codecity limits (vertex only)

STATIC DATAGEO code

GEO code (Computed from the tax provider. Storedwith address information.

Static data for tax calculations: GEO code, city, state,zip code, and product category.

STATIC DATA

CountryBusiness PartnerGroupItem GroupItemPoint of originPoint of destination

TAXCode

TAXRates

TAXMethodology

DYNAMIC DATA

Tax calculations within Distribution, Finance, Service, andCentral Invoicing

Update Business Partner order balances for total costof sale or purchase, including tax.

Compute applicable sales tax on documents such asorder acknowledgements.

When transactions are finalized and bills are paid,applicable sales tax is computed and stored. Taxhistory available for reporting.

DYNAMIC DATA

Tax Calculations

Update Tax Register.Audit trail of tax history used forreporting purposes

Figure 22, Baan and tax provider communication


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Static data

In Baan, a set of static data (country, customer, group, point of origin, point ofdestination) determines the appropriate tax jurisdiction. The tax providers, forexample, TAXWARE and Vertex, differ with regard to the information neededto identify a specific taxing jurisdiction. For TAXWARE users, the city, state,and zip code for US addresses or city, province and postal code for CanadianAddresses, and a GEO or geography code represent a specific tax jurisdiction.For Vertex users, the GEO code and a city limits flag identify a specific taxingjurisdiction. Data (city, state, zip code, GEO code, and city limits (vertex only))exists in Baan that uniquely distinguishes taxing jurisdictions. This mappingprovides the ability to perform tax computations outside of Baan. The TaxProvider interface is only applicable for companies that need to calculate tax forUS and Canadian customers and suppliers.

In some cases, the exact jurisdiction cannot be automatically determined basedon the city, state, and zip code due to overlapping jurisdictions. Baan provides amechanism to select the appropriate jurisdiction from a list of availablecandidates. When the tax jurisdiction is determined, the GEO code that uniquelyidentifies the taxing jurisdiction, is stored in Baan.

Dynamic data

After the static data has been defined and the GEO codes have been stored inBaan, tax calculations can be performed through the Tax Provider interface. Taxcomputation is necessary to:

n Update customer/supplier order balances for the total cost of the sale orpurchase, including tax.

n Compute applicable sales tax for documents such as orderacknowledgements.

Baan passes a GEO code and other required parameters to the tax provider. Thetax provider determines the tax jurisdiction based on the ship-from, ship-to, pointof origin, and point of acceptance, and performs the necessary computation. Theresults is sent back to Baan.

Another function of the tax provider is to maintain a tax register that is used as anarchiving tool for tax history. Data is passed from Baan to the tax provider toupdate this history. This occurs simultaneously with the data transfer for taxcomputations.


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Tax provider tablesInformation such as registered countries, product categories, Point of TitlePassage, and Sales/Service/Rental Use Indicator are maintained in Baan toprovide flexibility when you interface with a tax provider.

Countries (tcmcs0110m000)

The Print Line Tax check box is only accessible when the Tax Provider interfaceis activated. If this check box is selected, the tax amount attributable to eachdocument line is displayed, in addition to the summary tax information on thedocument.

Country tax provider register

Use the Country Tax Provider Register (tccoml140m000) session to define thecountries in Baan for which US and Canadian address verification is to beperformed. Multiple Baan countries are allowed for each address type. Anycountries not defined here are considered as foreign by the Tax Providerinterface.

Countries must be registered for the Tax Provider interface. Registering acountry for the Tax Provider interface indicates that the taxes for this country arecomputed by a third-party tax provider.

Figure 23, Country Tax Provider Register (tccom7140m000)

The Country Code field is the code by which the country is recognized in Baan.The Address Type field is the type of address that is associated with theregistered country for the tax provider.


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Product categories

Use the Maintain Product Categories (tccoml138m000) session to define validproduct categories for use with the Tax Provider interface. Product categoriesenable the tax provider to compute tax based on the type of products that arebought or sold. For example, it is common in the United States for materials tobe taxable and labor to be nontaxable. There is no conversion of productcategories when data passes to the tax provider, so the product categories definedin Baan must be identical to those defined in the external tax provider.

Figure 24, Product Categories (tccom7138m000)

The Product Category field is the code that identifies a specific product categorythat classifies different types of products bought or sold.


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Product category tax matrix

Use the Product Category Tax Matrix (tccom7539s000) session to associate aspecific product category with a range of product relation values. Productrelation types include:

� Item� Item group� Account number� Contract type� Service type� Project� Standard labor� Project labor� Standard sundry costsn Project sundry costs

Individual product relations or ranges, depending on the tax provider parametersettings, are mapped along with effectivity dates. The product categories mustmatch those that are used in the Quantum Tax Decision Maker (TDM) orTAXWARE STEP systems.

For tax calculations, the product category is determined based on different typesof product relations, depending on the type of transaction as follows:

n Item or item group determines the product relation for sales, purchasing, andservice order lines with an associated item

n Service type determines the product relation for service order lines with anactivity

n Contract type determines the product relation for service contracts

n General ledger account determines the product relation for financetransactions

n Project, standard labor, project labor, standard sundry costs, and projectsundry costs determine the product relations for Project transactions,depending on the specific project data

For item-based transactions a series of lookups are performed. The productcategory tax matrix is searched by effectivity date and item code. If no productcategory is specified for the item and date, the product category is searched againusing the item group associated to the item. For Vertex users, if no productcategory is found for either the item or the item’s item group and effectivity date,the item code is passed to the tax provider as the product category. ForTAXWARE users, the product category is blank in this case.


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In order to change product category matrix information, you need to delete therecord and add a new one.

Figure 25, Product Category Tax Matrix (tccom7539m000)

Figure 26, Product Category Tax Matrix (tccom7139s000)

Print product categories

Use the Print Product Categories (tccoml438m000) session to review and printthe product category information.

NOTE


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Print product category tax matrix

Use the Print Product Category Tax Matrix (tccoml439m000) session to reviewand print the mapping of product categories to the various Baan data types.

Contract Types (tssma2124m000)

Use the Sales/Service/Rental Indicator field to define the type of tax processingrequired for service contracts when the tax provider is activated.

Tax Provider parametersParameters indicate whether the Tax Provider interface is used and the type ofprocessing required.

Tax Provider parameters

Use the Tax Provider Parameters (tccom6550m000) session to activate the TaxProvider interface and define the basic settings for the environment. Set theUsing Tax Provider check box in this session to automatically start the TaxProvider Initialization Process (tccom6151s000) session to convert multilevel taxcodes to singular. In addition, the Amounts Entered in Baan Finance field mustbe set to Net, after which it is unavailable.

Figure 27 Tax Provider Parameters (tccom6150s000


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Figure 28, Tax Provider Parameters (Activation Warning)

Figure 29, Tax Provider Parameters (Activation Confirmation)

The Tax Provider parameter indicates whether or not tax computations areperformed through an external tax provider.

n If this check box is selected, Baan uses an external tax provider to performtax computations and provide tax registers for auditing and tax reportingpurposes.

n If this check box is not selected, tax computations are performed with internalBaan functionality.

The Point of Title Passage (only used by TAXWARE) is the default point atwhich the title passes, either origin or destination, that determines the taxingjurisdiction. Allowed values are:

n Point of Origin: The address from which the goods are shipped.

n Point of Destination: The address where the goods are delivered.

The Warn if Tax on ACR Invoices parameter indicates whether or not a warningmessage is issued when tax is computed for sales invoices.

n If this check box is selected and you use a tax provider, a warning messagedisplayed and you can enter a separate tax code for tracking purposes becausethe tax provider tax register is not updated for Finance transactions.

n If this check box is not selected, no warning message is issued when tax iscomputed for ACR invoices.


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The following parameters indicate whether or not you can use ranges to defineproduct category tax matrices:

n Item Rangen Item Group Rangen Account Number Rangen Contract Type Rangen Service Type Rangen Project Rangen Standard Labor Rangen Project Labor Rangen Standard Sundry Costs Rangen Project Sundry Costs Range

Use the product category tax matrices to associate product categories withselective information based on the types of previously listed data. The check boxassociated with each of these data types controls whether ranges or individualvalues can be used to associate a product category.

n If a check box is selected, a range can be associated with a specific productcategory/relation type combination.

n If a check box is not selected, only one code can be associated with a specificproduct category/relation type combination.

The Maintain Effectivity/Expiration Date Range parameter indicates whether ornot you can use an effectivity/expiration date range to define product categorytax matrices. Use these matrices to associate product categories with selectiveinformation such as items, item groups, contract types, ledger accounts, and dateranges.

n If this check box is selected, effectivity/expiration date ranges can bespecified for a particular product category/relation type combination.

n If this check box is not selected, Baan assumes that product category taxmatrices are always effective.


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API parameters

Use the Maintain API Parameters (tcapi1136m000) session to define which taxprovider partner is used.

Figure 30, API Parameters (tcapi1136s000)

The Interface Provider field identifies the available interface providers for thespecified API type.

n TAXWARE System - Baan interfaces to TAXWARE’s SALES/USE TaxSystem.

n Quantum System - Baan interfaces to Quantum for sales/use tax.

n No Provider - No external Tax Provider interface is used.

The Interface Used check box indicates whether or not the specified APIinterface is used by Baan.

n If this check box is selected, Baan interfaces with the selected provider forthe specified API type.

n If this check box is not selected, no interface for the specified API type isactive.


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Tax provider setup

Tax jurisdiction

Jurisdiction verification utility

Use the Jurisdiction Verification Utility (tccoml910m000) session to assign GEOcodes to your addresses. If the Update check box is not selected, what-if reportsare generated. Reports provided show the GEO codes to be assigned and anyinvalid addresses. If the Update check box is selected, GEO codes are assigned toyour addresses.

If there are multiple jurisdictions available for the same city, state/province, andzip/postal code, the first one on the list is selected. An exception to this occurs ifthere is already a GEO code assigned to the address and it is one of the availablechoices. In this case, the existing GEO code is not overridden. In either case, theavailable choices appear on the verification utility report, and can be manuallychanged.

Figure 31, Address Jurisdiction Verification Utility (tccom6210m000)

All addresses in the selected range are checked, and when possible, the correctGEO code for the indicated jurisdiction is retrieved from the tax provider andsaved in the address record.

Use the Update GEO Code Jurisdiction check box to access a utility option toupdate the database.

n If this check box is selected, valid jurisdiction changes that are reported bythe utility are updated in the database.

n If this check box is not selected, the utility runs in report-only mode withoutaffecting the existing jurisdiction associations that are stored in the database.

NOTE


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This utility can be used as a periodic verification tool, or as a mechanism toinitially associate tax jurisdictions with existing address information. The UseTax Provider check box must be selected in the Tax Provider Parameters(tccom6150m000) session in order to run this session.

Processing criteria: GEO code jurisdiction is only associated to address datathat correlates to countries registered in the Country Tax Provider Register(tccom7140m000) session.

Format verification: Address information must be in the correct format forinput into the tax provider. Run the Address Format Conversion Utility(tccom6211m000) session to verify the existing address data formats, ifnecessary. In addition to format structure, verification of valid state codes such asCA (California) or province codes such as QB (Quebec) is also performed by theutility. For Canadian addresses, there is an additional verification for validprovince/postal code association (the first two characters of the postal codeuniquely correspond to a specific province).

Based on the address information, the tax provider attempts to validate theexisting tax jurisdiction association.

One of the following cases occurs:

1 No jurisdiction - Address information does not correspond to a validjurisdiction in the tax provider (error message reported by utility).

2 Unique jurisdiction - The returned GEO code is compared to the existingjurisdiction that is associated to the address information. The utility changesthe jurisdiction association only if it is different.

3 Multiple jurisdictions - More than one jurisdiction can be valid for a specificaddress. If multiple GEO codes are valid, the utility changes the jurisdictionto the first GEO code passed back from the tax provider only if the existingassociation is not valid.

If you use the tax provider Vertex, all modified jurisdictions default to be insidecity limits. If you use TAXWARE, the Inside City Limits field does not apply.The GEO code designates whether the address is inside or outside the city limits.

The utility can be run for a specific range of addresses that exist in Baan. Youcan also run the utility without updating the existing data. Reports are generatedto show modified GEO code associations and address data that was not processeddue to errors.


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Select tax jurisdiction

Use the Select Tax Jurisdiction (tccoml900s000) session to change the GEO codeassignment for an address. You can only change addresses with multiplejurisdictions (for example, counties or transit districts) in the same city and zipcode, such as Atlanta, GA and Broomfield, CO.

Address verification for tax provider

When you maintain address information, the city, state, province, and ZIP/postalcode are verified to ensure that a valid combination was entered. The messageInvalid Province/Postal Code Combination is displayed if an invalid addresscombination is entered. Click the Jurisdiction button to invoke the jurisdictionverification and the selection process for existing addresses.

The tax provider assigns a GEO code to each address to uniquely identify ajurisdiction. The tax provider determines the GEO code based on the addressinformation entered and the county and city limits selected. The format of theGEO code varies by tax provider. TAXWARE uses a two-digit GEO code; theGEO code together with the city, state, and ZIP code, identifies the taxingjurisdiction. Quantum uses a nine-digit GEO code that consists of a two-digitstate code, three-digit county code, and a four-digit city code. A tenth digitidentifies whether the jurisdiction is inside or outside of the city limits.

In some cases the city, state, and ZIP code combination does not uniquelyidentify a jurisdiction. This can occur because the combination can reside inmultiple counties or can be either inside or outside of the city limits. If thissituation occurs, Baan automatically zooms to the Select Tax Jurisdiction(tccom7250s000) session where you can select the appropriate jurisdiction basedon the county, and for TAXWARE only, the city limits flag. For Quantum users,the Inside City Limits (Y/N) field on the address indicates whether the address isinside or outside of the city limits.

Address format conversion utility

Use the Address Conversion Utility for Taxation (tccom6211m000) session toconvert address and tax code information to the correct format for the TaxProvider interface.

Addresses for the countries defined as US or Canadian are included in theconversion process. If an address has multiple jurisdictions, the first occurrenceis selected. Examples of this are Broomfield, CO 80020 and 80021 and Atlanta,GA 30316 and 30317. For more examples refer to the Vertex Tax Rate Guide orTAXWARE SALES/USE Tax System User Guide.


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The following formats for City 1 and City 2 of the address are recognized forconversion:

City 1 City 2

1 City, State/Province Zip

2 City State/Province Zip


When the Convert check box is not selected, what-if reports are generated.Reports provided show any addresses to be converted and any invalid addresses.When the Convert check box is selected, addresses are converted.

Only the addresses for countries with address type of US or Canadian areconverted.

Figure 32, Address Conversion Utility for Taxation (tccom6211m000)

All addresses in the specified range are checked, and, when possible, convertedto the correct format for use with the Tax Provider interface.

Use the Destination Tax Conversion (Postal Code to GEO Code) option to copythe value from the Postal Code field to the GEO code field for all addresses inthe specified range. This session is used to convert from Baan IV. In Baan IV,the postal code was used to define default tax codes for the destination taxenvironment because there was no GEO code available without the tax provider.

n If this check box is selected, the value from the Postal Code field is copied tothe GEO code field for all addresses in the specified range.

n If this check box is not selected, no values are copied from the Postal Codefield to the GEO code field.

NOTE:


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The Tax Provider Address Format Conversion option controls whether the city,state, and zip code are parsed into the appropriate fields.

n If this check box is selected, the City 1 and City 2 data are parsed and theappropriate values moved to the state and zip code fields for all addresses inthe specified range.

n If this check box is not selected, no City 1 and City 2 field data is parsed.

If both the Destination Tax Conversion and the Tax Provider Address FormatConversion options are selected, the destination tax conversion is performedprior to the address format conversion.

Use the Update Address Information check box to access a utility option toupdate the database.

n If this check box is selected, valid address information that is reported by theutility is converted to the new format in the database.

n If this check box is not selected, the utility runs in report-only mode withoutaffecting the existing address information stored in the database.

The utility assumes that existing address data has been input into Baan in one ofthree format types. Only these formats are recognized by the utility forconversion. The three formats that are converted are:

Type Address City 1 Field Address City 2 Field

1 AAA, BBB CCC

2 AAA BBB CCC

3 AAA, BBB CCC

Legend AAA City

BBB State (for US address) or province (for Canadianaddress)

CCC Zip code (for US address) or postal code (for Canadianaddress)

These formats are converted to use the City, State and Zip Code fields rather thancombining information in the two city fields.

The utility can be run for a specific range of addresses. You can also run theutility without updating the existing data. Reports are generated to show theconverted address data and address data that was not converted due to errors.


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Tax provider exception setup

Baan companies, Business Partners, product categories, and their related taxexceptions or exemptions must be entered in the Quantum TDM or TAXWARESTEP system. This information determines the correct tax amounts to be passedfrom Quantum or TAXWARE to Baan.

Mapping of data elements between Baan and the tax provider is as follows:

Baan data element Vertex TDM dataelement

TAXWARE STEPdata element

Finance Company Company Company ID

-- Division (must be blank) --

Customer Customer Customer ID

Supplier Customer Customer ID

Financial Business PartnerGroup

Customer Class --

Product Category (mappedthrough item, item group, etc)

Product Category/ID Product Code

Tax provider tax processing

Tax calculations for tax provider

Baan computes tax on a line basis when interfaced to a tax provider. This isnecessary to accommodate product taxability. The tax provider computes theapplicable tax amount based on the taxing jurisdiction, taxable amount, ordertype, such as sales or service, and the type of product that is sold or purchased.The tax provider determines the taxing jurisdiction based on the ship-from, ship-to, point of order acceptance, and point of order origin (TAXWARE only)addresses that apply for the transaction.


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The following table indicates by order type, for Baan Service and BaanDistribution, the hierarchical process that identifies the ship-from, ship-to, pointof order acceptance, and point of origin addresses:

Type oforder

Ship-from Ship-to Point of orderacceptance

Point of orderorigin

SLS orderSLS quote

Address ofwarehouse onorder/quote linefor shippableitems

Address of salesoffice onorder/quoteheader for non-shippable items

Ship to address onorder/quote line

Address of salesoffice onorder/quoteheader


SLSinstallment


Ship to address onorder/quoteheader



PUR order Address of shipfrom businesspartner from orderline

Address ofwarehouse onorder line

Address of buy –from businesspartner on orderheader

Address of buy -from businesspartner on orderheader

SRVcontract

Address of serviceoffice on contractheader

Location addressrelated to theconfiguration.Specified incoverage terms



SRV order Address ofwarehouse onmaterial line forshippable items

Address of serviceoffice on orderheader for nonshippable items

Location addressrelated to theconfiguration.Specified incoverage terms

Address of serviceoffice on orderheader

Address of serviceoffice on orderheader

The following table indicates, by Finance session, for Baan Finance, thehierarchical process that identifies the ship-from, ship-to, point of orderacceptance, and point of origin addresses:


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Financesession



tfacp1110s000tfacp1112s000tfacp1120s000tfacp2110s000

One-timebusiness partneraddress

Address of shipfrom businesspartner

Address ofcompany


Address of ship -from businesspartner



tfacr1110s000tfacr1111s000tfacr2110s000tfacr4100m000tfacr4101s000tfacr5420m000

Address ofcompany


Address of shipto businesspartner

Address ofcompany

Address ofcompany

tfcmg1113m000tfcmg1113s000tfcmg1120m000tfcmg1220m000



Address ofcompany



One-timeBusiness Partneraddress

Address of shipfrom BusinessPartner

tfcmg2100s000tfcmg2108s000

Advancepayment



Advancepayment

Address ofcompany

Advancepayment



Advancepayment



Advance receipt

Address ofcompany

Advance receipt


Address of shipto businesspartner

Advance receipt

Address ofcompany

Advance receipt

Address ofcompany

tfcmg2116s000 Address of buy -from businesspartner

Address ofcompany

Address of buy -from businesspartner

Address of buyfrom businesspartner

tfcmg2117s000 Address ofcompany

Address of sold -to businesspartner

Address ofcompany

Address ofcompany


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Financesession



tfcmg2140s000 Advancepayment


Advancepayment

Address ofcompany

Advancepayment


Advancepayment


Other

Address ofcompany

Other


Other

Address ofcompany

Other

Address ofcompany

tfcmg4120m000 Purchaseinvoice orpurchase creditnote


Purchaseinvoice orpurchase creditnote

Address ofcompany





Other

Address ofcompany

Other


Other

Address ofcompany

Other

Address ofcompany

tfcmg2120s000tfgld1103s000tfgld1104s000tfgld1105s000tfgld1114s000tfgld1115s000tfgld1204s000

Address ofcompany

Address ofcompany

Address ofcompany

Address ofcompany


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The following table shows the values or hierarchical process that determine thevalue, by order type or transaction type, of additional input information used bythe tax provider for tax calculations.

Transactiontype

Sales/service/rental/purchaseindicator

Product category Point of titlepassage

SLS order Sales Item code

Item group

Item code (VERTEX)

Terms of delivery

SLS install Sales Installment item code

Item group

Item code (VERTEX)

Terms of delivery

SRV order Service Item code

Item group

Item code (VERTEX)

Default parameter

SRV contract Contract type Item code

Item group

Item code (VERTEX)

Terms of delivery

PUR order Sales Item code

Item group

Item code (VERTEX)

Terms of delivery

Financetransactions

Sales Ledger Account (if available) Default parameter

When you interface to a tax provider, the tax code determines the GL accountsfor posting the tax amounts. In addition, the tax code indicates if the transactionis taxable. A transaction with a blank tax code is considered non taxable. Taxinformation is stored for tracking and reporting purposes in the tax providerregisters. The register stores information such as the type of transaction,document or invoice number, invoice date, and the amount of tax withheld bytaxing jurisdiction. The tax provider tax register is updated automatically whenyou invoice in Baan Central Invoicing. Audit reports and tax reporting areavailable in the tax provider products.


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Tax summary

The following sessions print tax information obtained from the tax provider, thatincludes tax summary and line tax data if specified for the country of the order orinvoice:n Compose/Print/Post Invoices (cisli2200m000)n Print Invoices (cisli2400m0000)n Print Purchase Contract Acknowledgments (tdpur3405m000)n Print Purchase Orders (tdpur4401m000)n Print Purchase Invoices (tdpur4404m000)n Print Quotations (tdsls1401m000)n Print Sales Contract Acknowledgments (tdsls3405m000)n Print Order Acknowledgments/RMAs (tdsls4401m000)n Print Contract Quotation Documents (tsctm2400m000)n Print Service Order Documents (tssoc2410m0000)n Print Service Contract Documents (tsctm3400m000)

Tax provider calculation utility

Use the utility shown in Figure 33 to obtain visibility of potential tax amountsfrom the tax provider, and to update the tax provider with data for adjustmenttransactions. The Using Tax Provider parameter must be selected in the TaxProvider Parameters (tccom6150m000) session in order to run this session.Baan Finance does not update the tax-provider tax register as a result of financialtransactions. Use the Tax Provider Calculation Utility (tccom6212m000) sessionto enter the tax amounts for ACR or ACP invoices and journal entry adjustments.

Figure 33, Tax Provider Calculation Utility (tccom6212m000)


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The Order Type field indicates the type of order for which sales tax is calculated.This indicator is passed to the tax provider to determine the correct taxation rulesand rate.

The Business Partner field indicates the customer or supplier for whom sales taxis to be calculated. If the order type is Sales, Service, or Rental, a customer isspecified. If the order type is Purchase, a supplier is specified.

The Addresses group box indicates the Ship From, Ship To, Order Acceptanceand Order Origin (TAXWARE only) locations to be used in the calculation ofsales tax.

The Order Quantity field indicates the quantity of products on the order forwhich sales tax is calculated.

The Gross Amount field is the amount of the order for which sales tax iscalculated.

The Transaction Date field is the effective date of the order for which sales tax iscalculated.

The Product Category field indicates the product category of the order for whichsales tax is calculated.

The utility has two main functions:

n Rates/Amounts (tccom6213s000)This session displays the component breakdown of the sales tax applied forthe specified jurisdiction in the tax provider.

n For US addresses, the total tax rate is broken down into five separate taxauthorities:− State− County− Secondary county− Local− Secondary local

n For Canadian addresses, the total tax rate is broken down into two separatetax authorities:− GST− PST or QST(Quebec)

n Process Adjustments (tccom6214s000)This session displays the component breakdown of the sales tax applied forthe specified jurisdiction in the tax provider and allows you to modify therates/amounts. The tax provider’s tax register is updated with the taxtransaction specified.


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In this process you can enter miscellaneous adjustment transactions in theexternal tax provider’s tax register.

The primary function of this session is to manually enter tax adjustments intothe tax provider’s tax register. Currently in Baan, tax from Central Invoicingis automatically written to the tax provider. Tax from financial transactions,however, needs to be manually entered into the tax provider’s tax register.The session provides that ability, along with the ability to enter any othermiscellaneous entries that need to be entered in the tax register.

Based on jurisdiction information, quantity, and amount passed, the sessionreturns default tax rates that can be manually modified before you update thetax register.

Tax impact on sales installments for tax provider

When you interface with a tax provider, the tax withheld on sales installments isconsidered Estimated tax. The estimated tax is considered as a part of thepayment terms. The Baan tax register and tax provider tax registers are notupdated for estimated tax. The actual tax is recognized when the order is settled.For Direct orders, this occurs as shipments are made and invoices are generated.For Indirect orders, the tax is recognized when the order is closed and a finalinvoice is generated.

The correction entry that is generated when you close an order with the MaintainInstallment Data (tdsls4106s000) session includes the amount of tax and the latepayment surcharge due. The tax and late payment surcharge due are included inthe amount of the correction entry created and the tax code is blank.

Finance transactions

Finance transactions use the tax provider to supply a default tax percentage, butthis can be overridden. Because you can override the default tax percentage, notax is recorded in the tax provider’s tax register for finance transactions. In orderto get comprehensive tax reports from the tax provider, any tax related to financetransactions must be manually entered from Baan tax reports to the tax provider.You can use the Tax Provider Calculation Utility (tccom6212m000) and ProcessNA Tax Provider Adjustments (tccom6214s000) sessions to input this data intothe tax provider’s tax register.


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Tax provider tax reportingAll tax reports used for basic or destination sales tax are available whether or notthe Tax Provider interface is used, however it is expected that the tax provider’sown reports are the primary source of tax information when the interface isactivated.

Line tax information

Tax information by document line is only available when the Tax Providerinterface is activated. Line tax amounts supplied by the tax provider can beviewed in the Sales and Warehouse Order Invoice Lines (cisli2145s000), ProjectSales Invoice Lines (cisli2135s000), Service Order Invoice Lines(cisli2155s000), Service Contract Installments (cisli2165s000), Manual SalesInvoice Lines (cisli2125s000) and Interest Invoice Lines (cisli2119s9000)sessions. This information is also available on the printed order or invoicedocuments, if Country is set to print tax amounts by line.

Tax provider’s tax register

Use the tax provider’s tax reports to review detailed tax information. Thesereports have jurisdictional breakdown information that is not available in Baan.More information on the type and content of these reports can be obtaineddirectly from the tax provider.

Tax provider technical designThe Tax Provider interface uses a generic API to connect to tax providerproducts from Baan in a seamless manner. The API passes messages and/or databetween Baan and the tax provider product.

The generic API consists of an API driver that is written in C. This driver acts asa request server for Baan. A Baan session sends a message to the API driver via adefined message queue. The API driver interprets the message and sends aresponse to the Baan session.

The interface uses a library of 4GL functions. For example, the 4GL tax interfacelibrary provides a calculate.tax() function with several parameters.Calculate.tax() function uses parameter information to determine the tax providerat the time of the call and make a call to calculate.tax.avp() orcalculate.tax.vertex(). This allows a standard function to call either TAXWAREor Vertex. The 4GL library handles the protocol that passes messages to andfrom the API driver.


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The 4GL library looks up the needed API parameters from a table. Next, thelibrary employs messages (and UNIX message queues) to interact with the taxprovider product. The API driver sends, processes, and receives messages fromthe 4GL session and the tax provider product.

The API driver decodes the message and performs any necessary actions. TheAPI driver is a UNIX process that is dedicated to filling API requests. Theprotocol that communicates between the API and the 4GL session has amechanism for handling errors, retrying requests, and so on.

Figure 34 outlines the generic API scenario in Baan.

TAX ProviderFunctionality

APIDriver

BAAN Logic Server

4GL Session

4GL Session

4GL Session

Figure 34, Generic API scenario

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If you are currently running Baan, the Tax Provider interface must beimplemented at month end after closing your financial period and beforeprocessing begins for the current period. However, implementation at quarter endto facilitate tax reporting is recommended. If you are unable to convert at quarterend, both the Baan and tax provider tax registers must be consulted when you fileyour quarterly reports.

Preconversion stepsThe following must occur before you implement the Tax Provider interface:

1 Define the countries for which U.S. and Canadian address verification isperformed with the Country Tax Provider Register (tccom7140m000)session. Then convert existing address information to the required format.

Figure 35, Country Tax Provider Register (tccom7140m000)

2 U.S. and Canadian addresses, determined by the country code, must use theCity, State, and Zip Code fields of the address format to enable the taxprovider to identify GEO codes to uniquely identify a taxing jurisdiction. Thestate or province code must correlate to the standard 2 character code used bythe post office (for example, CA for California).

5 Conversion considerations for taxprovider

Conversion considerations for tax provider

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3 Run the Address Conversion Utility for Taxation (tccom6211m000) sessionto convert existing address data to the correct format. The following formatsfor lines 3 and 4 of the address are recognized for conversion:

Line 3 Line 4


2 City State/Province Zip

An invalid address report is generated for U.S. and Canadian addresses thatcannot be converted. These addresses must be corrected with the appropriateBaan session.

Figure 36, Address Conversion Utility for Taxation (tccom6211m000)

4 Repeat the Step 3 until all addresses are in the correct format.

5 Install TAXWARE’s SALES/USE Tax System or Vertex’s Quantum for Salesand Use Tax using the instructions provided by the tax provider vendor. Also,refer to Chapter 6 of this document for information related to implementationof the Tax Provider interface.


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6 Close the fiscal period with the Close Periods (tfgld1206m000) session. Thissession closes periods finally for reasons of administrative organization.

Figure 37, Close Periods (tfgld1206m000)

The Period Type field defines the purpose of the periods. You can select thefollowing period types: Fiscal, Reporting, or Tax. All types must be closedprior to implementation, but the tax periods are the most important becausesales tax reporting is based on these periods.

The Module field identifies which module you want to close. All modulesmust be closed before you implement the Tax Provider interface.

Use the Final Closing check box to finally close a period.

− If this check box is selected, the period is finally closed. You can nolonger reopen the period in the Maintain Period Status (tfgld0107m000)session to process further transactions in this period.

− If this check box is not selected, the period is closed. You can reopen theperiod in the session mentioned for transactions, if required.

The periods must be finally closed before you implement the Tax Providerinterface.


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Conversion stepsPerform the following steps to implement the Tax Provider interface before youenter transactions for the current fiscal period:

1 Select the Use Tax Provider check box in the Tax Provider Parameters(tccom6150s000) session.

Figure 38, Tax Provider Parameters (tccom6150s000)

2 Define the tax provider, either TAXWARE System or Quantum System, withthe API Parameters (tcapi1136s000) session.

Figure 39, API Parameters (tcapi1136s000)

3 Define tax-provider-specific environment variables. See TechnicalImplementation Considerations for more information.


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4 Verify and assign GEO codes to existing address information with theAddress Jurisdiction Verification Utility (tccom6210m000) session. Choosethe option to update. This utility automatically assigns a GEO code based onthe most likely candidate for valid addresses. For Quantum users, the citylimits flag assigned to each address is checked for inside the city limits.

Figure 40, Address Jurisdiction Verification Utility (tccom6210m000)

An invalid address report is generated for invalid address combinations.These addresses must be corrected with the appropriate Baan session.

5 Repeat Step 4 until all addresses are correct and have been assigned a GEOcode.

6 Evaluate GEO codes and redefine if necessary.

In some cases you may need to assign a GEO code or city limits (Quantumusers only) other than the defaults assigned, if the address qualifies formultiple taxing jurisdictions. Review the report generated in Step 4. Tochange the GEO code for an existing address, run its associated maintenancesession. Click the Jurisdiction button to initiate the selection process, thenchoose the appropriate taxing jurisdiction from the list provided. The citylimits flag can be entered directly with the address’s associated maintenancesession for Vertex users. TAXWARE users choose the appropriate GEO codeto identify inside/outside city limits for those cases where a city tax applies.

7 Using the TAXWARE or Quantum systems, enter your company, businesspartner, and product-related information.


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8 Define the valid product categories with the Product Categories(tccom7138m000) session. The product categories defined must identicallymatch the product categories defined in the tax provider for correct taxprocessing.

Figure 41, Product Category (tccom7138m000)

9 Enter the matrix of Item Groups, Items, Contract Types, and AccountNumbers, and so on by product category with the Product Category TaxMatrix (tccom7139m000) session. Whether these values are entered as rangesor individually depends on the parameter setting for each product relationtype in the Tax Provider Parameters (tccom6150s000) session.

Figure 42, Product Category Tax Matrix (tccom7539m000)


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Figure 43, Product Category Tax Matrix (tccom7139s000 - Form 1)

Figure 44, Product Category Tax Matrix (tccom7139s000 - Form 2)


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10 Enter the Sales/Service/Rental Use Indicator for Contract Types with theContract Types (tssma2124m000) session. This field indicates the type of taxprocessing required for the contract type because services and rentals can betaxed differently.

Figure 45, Contract Types (tsctm0105m000)

Contract types are groups of contracts with common features. Examples:Annual Contract, Full Service and Maintenance, or Customized Contract.

The Sales/Service/Rental indicator indicates the type of tax processingrequired for each contract type since services and rentals can be taxeddifferently.


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For TAXWARE users, enter the Point of Title Passage for each Terms ofDelivery code, either Point of Origin or Point of Destination with the Terms ofDelivery (tcmcs0141m000) session. Terms of delivery are agreementsconcerning the delivery of goods; they appear as information on externaldocuments.

Figure 46, Terms of Delivery (tcmcs0141m000)

Cash on delivery means that goods are delivered on the condition that they arepaid for immediately on receipt.

Carriage paid means that the carriage or postage has been paid by the consignor.

The Point of Title Passage field indicates the location at which the legal title istransferred to the purchaser. TAXWARE uses the Point of Title Passage, alongwith other information, to determine the taxing jurisdiction. TAXWARE defaultsto the point of destination unless otherwise specified.


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Post conversion considerations1 Reevaluation of your current tax structure in Baan Finance must be

considered because the tax provider does not require the complexmethodology needed by non tax provider users. When interfacing with a taxprovider, the tax code’s sole purpose is to define the GL accounts for postingtax amounts. Rates and jurisdiction are determined by the tax provider.

You may want to use separate tax codes for Finance transactions. See Step 2for more information.

2 Because the tax impact for financial transactions is not written to the taxprovider tax register, manual adjustments must be made in the provider forthe tax before you file your quarterly reports. To facilitate tracking of the taxfor finance transactions, you may want to use separate tax codes for thesetransactions.

3 For service contracts the location of the covered installations is assumed to bethe delivery address. For correct taxation, separate contracts must bemaintained for each customer location.

Technical implementation considerationsThe Tax Provider interface requires several setup steps to create the link with thethird party software. This process involves modification of both the system andapplication environment. See the next chapter of the Installation Guide for moretechnical details.

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This chapter provides information that describes the installation of the TaxProvider interface. The information topics are:

n Installation prerequisitesn Tax provider overviewn Environmental variablesn Tax API installation on UNIXn Tax API installation on Windows NTn Post installation tuning

Installation prerequisites

Software requirements

The Baan Tax API supports both the TAXWARE and Quantum systems. Youmust install one of these tax provider software packages and create the providerdatabases before the Baan Tax API can be installed. Installation procedures forboth TAXWARE and Quantum systems are provided with those packages.

If the Baan Tax API installation is performed on a UNIX host system, the systemmust have an ANSI C compiler.

There are no special compiler requirements for Windows NT.

Experience requirements

The Baan Tax API installation requires a broad range of experience to ensuresuccessful implementation. The following summarizes the knowledgerequirements for either a UNIX or a Windows NT platform.

UNIX platform experiencen Baan applicationn System administrationn Programming: Makefilesn Database administrationn Shell scripting

6 Tax Provider interface installationguide

Tax Provider interface installation guide

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Windows NT platform experiencen Baan applicationn System administrationn Programming: DLLsn Database administration

Tax provider overview

TAXWARE

The TAXWARE System Flow is illustrated in the following diagram.

VERAZIP

Tax Master File

TAXWARESALES/USE TAX

SYSTEM 3.1+

Baan ERP

Product TaxabilityMatrix

STEP 3.1

Aud

it F

ile

Tax Returns

InternalManagement

Reports

Figure 47, Taxware system flow


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The TAXWARE SALES/USE tax system automatically calculates sales, use, andrental taxes for goods and services for any location in the United States(including its possessions) and for the Canadian provinces. Updated monthly, itsdatabase of tax rates accurately tracks rate changes for states, countries, cities,and towns. The system allows you to calculate special rates based on producttypes. The system records transactions in an audit file as they are processed,providing a clear audit trail for future use as well as a source of historical reports.

The TAXWARE interface requires the following software to be installed:

n VERAZIP

n SALES/USE Tax System

n Sales Tax Exemption Processing (STEP) System

The SALES/USE Tax System must be configured to work with STEP. See theTAXWARE documentation for further installation instructions.

The Tax API will not work if these products are not installed and configuredcorrectly.

Additional information about TAXWARE can be found at www.taxware.com.

Quantum

The Vertex Quantum system flow is illustrated in the following diagram.

GeoCoderDatabase

Tax RateDatabase

TDMDatabase

RegisterDatabase

TaxCalculation

Function

TaxReturns

Audit &Management

Reports

GeoCoderProgram

BAANERP

System

INTERFACE INTERFACE

Figure 48, Vertex Quantum system flow

NOTE

http://www.taxware.com/


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Quantum for Sales and Use Tax takes transaction data from the Baan applicationand determines the correct tax rate by searching its databases for exceptions, theappropriate jurisdiction, and the current tax rate. Quantum then calculates thecorrect tax amount and passes this information back to the Baan application. Thetransaction data is stored in a register database and used for the preparation of taxreturns and the creation of audit and management reports.

The Quantum interface requires that the Sales and Use Tax system be installedand configured correctly. See the Quantum documentation for further installationinstructions.

Additional information about Vertex can be found at www.vertexinc.com

Environmental variables

TAXWARE and Quantum environmental variables

The Baan Tax API uses environment variables to determine information aboutthe tax providers. The environment variables must be set for all users who usethe API. The following tables provide environment variable definitions for bothTAXWARE and Quantum.

TAXWARE Environment variables

Variable name Defines Required/optional

AVPIN Input directory for tax data files. Required

AVPOUT Output directory for tax data files. Required

AVPAUDIT Directory for tax audit files. Required

AVPTEMP Directory for temporary use by tax system. Required

STEPIN Input directory for STEP data files. Required

STEPOUT Output directory for STEP data files. Required

STEPAUDIT Directory for STEP audit files. Required

STEPTEMP Directory for temporary use by STEP. Required

ZIPIN Input directory for VERAZIP data files. Required

ZIPOUT Output directory for VERAZIP data files. Required

ZIPTEMP Directory for temporary use by VERAZIP. Required

NOTE

http://www.vertexinc.com/


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Quantum environment variables

Variable name Defines Required/optional

VERTEXGEO Defines the Vertex data source parameter.

For ISAM: Set to the directory where theGeo Code database and index files reside.

For relational databases: See the Vertexmanual for data source definition.

Required

VERTEXRATE Defines the Vertex data source parameter.

For ISAM: Set to the directory where theRate database and index files reside.


Required

VERTEXREG Defines the Vertex data source parameter.

For ISAM: Set to the directory where theRegister database and index files reside.


Required

VERTEXTDM Defines the Vertex data source parameter.

For ISAM: Set to the directory where theTDM database and index files reside.


Required

VERTEXPWD Defines the Vertex user password

For ISAM: Not required.

For relational databases: See the Vertexmanual for user password definition.

See Vertexdocumentation

VERTEXUSER Defines the Vertex user logon needed bythe database server.


For relational databases: See the Vertexmanual for user definition.


VERTEXSERVER Defines the Vertex database server.


For relational databases: See the Vertexmanual for server definition.



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Baan Tax API installation on UNIXThe following steps are required to install the Baan Tax API on a UNIX system:

n Edit makefilen Set environment variables

Edit makefile

1 Create a temporary directory for the Baan Tax API build.

2 Copy all library files ( *.a) from $BSE/api/lib to the temporary directory.

3 Copy the appropriate makefile from $BSE/api/taxpmake to the temporarydirectory.− Makefile.avp for TAXWARE.− Makefile.vertex for Quantum.− Makefile.both for both providers.

4 Rename the file to makefile.

5 Edit the following makefile variables:

For all makefiles

Set Equal to

CC The executable for the ANSI C compiler

CCOPTIONS Any compile options required for an ANSI compilation.

For TAXWARE (makefile.avp)

Set Equal to

AVPLIB The directory above the Btree library.

AVPTAXDIR The directory that contains the tax objects and headers.

AVPZIPDIR The directory that contains the Zip objects and headers.

AVPSTEPDIR The directory that contains the STEP objects and headers.

For Quantum (makefile.vertex)

Set Equal to

VERTEXDIR The directory above the Quantum product directories.

For both providers (makefile.both), set both the TAXWARE and Quantumvariables as previously described.

6 Type make in the temporary directory.

7 Move api6.2 from the temporary directory to $BSE/bin.

NOTE


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Set environmental variables

In UNIX, the environment variables must be set with the following procedure:

1 In $BSE/scripts, create an executable command file:

$BSE/scripts/taxp6.2

The scripts directory is just an example. You can keep this file in the path ofyour choice.

Include the following information in this file:− First line must be: #!/bin/sh− Set all of the necessary environment variables.− Last line must be: ${BSE}/bin/bshell6.2 $*

#!/bin/sh

AVPIN=/taxware/V3.1/salestax/indataAVPOUT=/taxware/V3.1/salestax/outdataAVPAUDIT=/taxware/V3.1/salestax/auditAVPTEMP=/taxware/V3.1/salestax/temp

STEPIN=/taxware/V3.1/step/indataSTEPOUT=/taxware/V3.1/step/outdataSTEPAUDIT=/taxware/V3.1/step/auditSTEPTEMP=/taxware/V3.1/step/temp

ZIPIN=/taxware/V3.1/vzip/indataZIPOUT=/taxware/V3.1/vzip/outdataZIPAUDIT=/taxware/V3.1/vzip/auditZIPTEMP=/taxware/V3.1/vzip/temp

VERTEXGEO=/quantum/V1.3/outdata/geodbVERTEXRATE=/quantum/V1.3/outdata/ratedbVERTEXREG=/quantum/V1.3/outdata/regdbVERTEXTDM=/quantum/V1.3/outdata/tdmdb

export AVPIN AVPOUT AVPAUDIT AVPTEMPexport STEPIN STEPOUT STEPAUDIT STEPTEMPexport ZIPIN ZIPOUT ZIPAUDIT ZIPTEMPexport VERTEXGEO VERTEXRATE VERTEXREG VERTEXTDM

${BSE}/bin/bshell6.2 $*


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When you use the bshell name bshell_taxp to set up the BW configuration,the contents of the taxp6.2 command file are carried out when the BW isinvoked. The environment variables are set and the current bshell is activated.

Verify permission on the tax provider data files. For example,/quantum/V1.3/outdata/ratedb can be carried out at the UNIX group level.

Environmental variables on UNIX: Quick referenceVendor Database Environment VariablesQuantum ISAM Shell script

methodVERTEXGEO, VERTEXRATE,VERTEXTDM, VERTEXREG

Relational Shell scriptmethod

VERTEXGEO, VERTEXRATE,VERTEXTDM, VERTEXREG,VERTEXSERVER,VERTEXUSER, VERTEXPWD

TAXWARE ISAM Shell scriptmethod

AVPAUDIT, AVPIN, AVPOUT,AVPTEMP, STEPIN,STEPOUT, STEPTEMP,ZIPIN, ZIPOUT, ZIPTEMP

2 Add the following line into the ipc_info file in $BSE/lib:

bshell_taxp s 0 0 p ${BSE}/scripts/taxp6.2

This new line creates a new bshell name, that is used in the BW configuration(step 3). See the following example. When you look in the ipc_info file,notice that there should be other bshell names with the same syntax.

The ipc_info key, bshell_taxp, is just an example. You can label it in anymanner you choose.

$BSE/lib$ more ipc_infobshell s 0 0 p ${BSE}/bin/bshell6.2bshell_taxp s 0 0 p ${BSE}/scripts/taxp6.2audit s 501 510 p ${BSE}/bin/audit_srv6.2fs6.2 s 303 335 m ${BSE}/bin/fs6.2bisam s 307 370 p ${BSE}/bin/bisam_srv6.2btam s 307 370 p ${BSE}/bin/btam_srv6.2informix s 305 350 p ${BSE}/bin/inf_srv6.2oracle7 s 302 320 p ${BSE}/bin/ora7_srv6.2bshell.inst s 0 0 p ${BSE}/bin/bshell_inst6.2sh_server s 0 0 s ${BSE}/bin/sh_server6.2$

NOTE

NOTE


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The easiest thing to do is to cut and paste one of the existing lines that definea bshell name and change the information of the copy to be identical with thebshell_taxp line shown in the previous example.

3 Display the BW configuration dialog. You must set up the BW configurationbefore you start up the Baan Windows server.

Figure 49, BW Configuration

Make the following entries:

− In the Host Name field, enter or modify the host name of the remote Baanhost.

− In the User Name field, enter or modify a valid UNIX user name for theremote Baan host.

− In the Password (Optional) field, enter or modify the password thatbelongs to the user name specified in the Connect As field. This passwordis encrypted before storage on disk.

− In the BSE field, enter or modify the path of the BSE environment on theremote Baan host. This must be the same as the BSE environmentvariable on the Baan host.

− In the Bshell Name field, enter the ipc_info key (bshell name) that youused in Step 2 earlier in this procedure. The sample bshell name isbshell_taxp.


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4 Click RUN. You are prompted for your password if the Connect As option isset to Ask password at startup.

Baan Tax API installation on Windows NTInstallation of the Baan Tax API on a Windows NT system includes thefollowing steps:

n Link tax provider functionsn Set environmental variables

Link tax provider functions

A single executable api.exe is delivered in the \baan\bin directory. Thisexecutable dynamically links tax provider functions at run time. The path mustcontain the directory of tax provider DLLs.

n For TAXWARE, include the directory for AVPTAX.DLL, AVPZIP.DLL andAVPSTEP.DLL in the path.

n For Quantum, include the directory for VST.DLL and LOCATION.DLL inthe path.

Set environmental variables

All environmental variables are system-level and must be set by choosing theSystem option on the Control Panel.

This table summarizes how environmental variables are set up in Windows NTfor both Quantum and TAXWARE.

Environmental variables on Windows NT: Quick referenceVendor Database Environment Variables

Quantum ISAM SEV VERTEXGEO, VERTEXRATE,VERTEXTDM, VERTEXREG

Relational SEV VERTEXGEO, VERTEXRATE,VERTEXTDM, VERTEXREG,VERTEXSERVER,VERTEXUSER, VERTEXPWD

TAXWARE ISAM SEV/INI AVPAUDIT, AVPIN, AVPOUT,AVPTEMP, STEPIN,STEPOUT, STEPTEMP,ZIPIN, ZIPOUT, ZIPTEMP


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The references in the Environment column are defined as follows:

n SEV refers to the system environment variable method. This method is usedfor Quantum on NT. You must define the environment variables at thesystem level, and restart the system.

n SEV/INI refers to the initialization file method. This method is used forTAXWARE on NT. The Tax Interface verifies that the variables are set inboth NT and the TAXWARE initialization files.

Testing installationOnce the installation is complete, perform a simple communication test to verifythat the calls are received and the requested data is retrieved. The Tax Providerand API parameters (tccom6150s000 and tcapi1136s000) sessions must beactivated and a country must be registered in the Country Tax Provider Register(tccom7140m000) session prior to running this test.

Creation or modification of an address for a registered country (tccom4130s000)triggers a call from Baan to the tax provider to retrieve or verify the associatedGEO code. If no GEO code is assigned, confirm that the city, state, and Zip codecombination is valid for the country. If a valid GEO code is assigned, use theaddress to continue the test.

Use the Tax Provider Calculation Utility (tccom6212m000) session to verify thatrates and amounts are passed from the tax provider to Baan. Enter the address oraddresses that have just had GEO codes assigned, fill in an amount, and click theRates/Amounts button to see the values returned from the tax provider.

More detailed instructions on the setup of the Tax Provider interface are providedin Chapter 5 of this document.


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Post installation tuning

API time-out environmental variables

An API time-out can occur in heavily loaded systems under certain conditions. Ifthis happens, the following environment variables can be set.

Tax API Performance Environment Variables

Variable Defines Modifies

APISTART The maximum number of seconds Baanwaits for the API process to start. Thedefault setting is 20. If an error 12 occurs,set APISTART to greater than 20 in theUNIX environment for each user.

API time-out

APIWAIT The maximum number of seconds Baanwaits for a response from the API. Thedefault setting is 20. If error 11 or 7 occurs,set APIWAIT to greater than 20 in the UNIXenvironment for each user.

Messagetime-out

Communications on UNIX

Communication between the Baan Tax API and the tax provider is handled byUNIX message queues. Kernel parameters must be set to optimize the UNIXmessage queues. Parameter names can be dependent on operating systemrequirements.

UNIX message queue parameters

Parameter Purpose Recommended value

MSGMAX This parameter specifies the maximumsize of a message.

2048 or greater

MSGMNB This parameter specifies the maximumnumber of bytes on message queuessystemwide.

System maximum(typically, 32K)

MSGTQL This parameter specifies the maximumnumber of open messages systemwide.

System maximum or(2 * Baan users)

MSGMNI This parameter specifies the maximumnumber of message queues that can beused systemwide

System maximum or(5 * Baan users)

Message queues are allocated at Baan Tax API initialization, and are unallocatedat termination. In the event the Baan application aborts abnormally, messagequeues can be incorrectly unallocated. Periodically, message queues must bemonitored with the command: % ipcs -q.


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Message queues that are owned by user root must never by removed, butmessage queues owned by non active Baan users can be unallocated by carryingout the command: % ipcrm -q [message queue number].

Communications on Windows NT

Communication between the Baan Tax API and the tax provider is handled byMailSlots.

Shared memory

The Baan Tax API application frequently uses several objects to retrieve tax ratesand GEO codes from the tax provider. Placing these objects into shared memoryenhances the Baan Tax API performance.

1 Execute the Maintain Shared Memory Data (ttaad4150m000) session as userbsp.

2 Insert a record, under the correct package VRC, for:

− tcapi0000m000− tcapidlll001− tcapidlll002− tccomdll0020

3 Convert to run-time data dictionary.

Debug capability

TAXWARE

You can compile the system with TAXWARE.DEBUG defined, and the dbg.txtdebug file located in the directory pointed to by the AVPAUDIT environmentvariable.

Vertex

There is a system variable: VERTEXDEBUG.

In UNIX, if this variable is set to 1, the Tax Provider interface produces a filecalled baan.out in your home directory.


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In NT, the same file is in /baan/tmp. It can be set by inserting

-- -set VERTEXDEBUG=1

in the Command field of the BW configuration, as shown in the dialog here.

Figure 50, BW Configuration

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General tax provider questions1 When a service order with more than one position is entered, will the printed

invoice show all the positions for the order? Will a financial transaction becreated for that invoice?

All lines for which tax is calculated without any errors are invoiced correctlyand the financial transactions are written correctly. If an error occurs duringtax calculation, the line amount is not considered for tax calculation.

However, it can cause the same item line to be printed multiple times. Thishappens when a tax calculation error occurs for an item and Baan tries toinvoice the whole order again, because of the failure in invoicing the order inthe previous try. Unfortunately, this feature cannot be avoided.

2 What is the equivalent to the point-of-order acceptance addresses?

There is no direct equivalent to the order acceptance address currently inBaan. Therefore, the value used is based on the closest estimate for the typeof transaction. See Chapter 4, “Tax calculations for tax provider” for a matrixshowing what is passed to the tax provider for each address type per type oftransaction. In general, the order acceptance address relates to whoever isselling the goods. If you are selling goods to one of your customers, yourcompany address is the order acceptance. If one of your suppliers is sellinggoods to you, the supplier address is the order acceptance.

3 Does the tax provider update the tax codes by GEO codes table?

No, the tax codes by GEO codes table must be updated by you in order toselect the correct tax codes based on GEO codes. The tax code in Baan is notvisible to the tax provider, however the presence of a tax code is used as thetrigger to call the tax provider.

7 Frequently asked questions

Frequently asked questions

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4 Which Baan sessions call or update the tax provider?

All sessions that print or calculate tax have the capability to call the taxprovider. For example, the sales order and purchase order update BP orderbalances whenever a line is created, modified, cancelled, or deleted. Tax isincluded in the order balance, therefore the tax provider is called each timeany of those actions is performed. Similarly, when you print an orderacknowledgement or quotation, tax is included. Therefore, the tax provider iscalled whenever one of these documents is printed. See Appendix C for a listof the scripts in Baan that call the tax provider function.

The tax provider’s tax register is only updated from the Compose/Print/PostInvoices (cisli2200m000) session and the Process NA Tax ProviderAdjustments (tccom6214s000) of the Tax Provider Calculation Utility(tccom6212m000) session.

5 Can GEO Codes be assigned manually?

Manual application of GEO codes is not permitted when the Tax Providerinterface is activated. All GEO codes are assigned automatically by the taxprovider in this case.

6 Can use tax be accrued on invoices where the vendor has not charged tax?

The interface supports tax verification of a vendor’s charged sales tax. Thisallows you to calculate sales tax and compare it to the amount charged by thesupplier. Use tax accruals are not posted to the tax provider’s registerdatabase. You do have the ability to accrue any differences in the Baan GLwith the use of shifted tax codes.

7 When a credit transaction is performed, can I simply post the tax-only creditamount to the tax provider’s register database?

When making a credit adjustment, you must fully void out the originalinvoice to remove tax amounts from the Register Database by passing anegative dollar amount. Tax-only credit transactions are not currentlysupported in Baan.

8 Why do I get seller’s use tax for out of state sales?

There is currently no way in the tax provider to specify the states where youhave established a presence for sales tax purposes. Therefore, any shipmentsthat cross state lines are considered to be subject to seller’s use tax. Baanpasses all addresses for the transaction to the tax provider and the taxprovider makes the decision as to which type of tax will apply.


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TAXWARE specific questions1 Does Baan pass any values for job number, account number, or cost center to

TAXWARE for use in identifying exceptions defined in STEP?

No, Baan does not pass any values for these fields.

2 One of the parameters passed from Baan to TAXWARE controls whethereach level of tax is checked individually for exemptions in STEP or whetherall levels follow the definition of the state level. How is this parameter set byBaan and what are the implications?

Originally, Baan passed this parameter to indicate that the state leveldefinition is used for all levels of tax. This decision was made becausenormally in the US an exemption certificate is issued by the state, but theexemption also applies to all county, city, and district taxes in that state.Setting this parameter to use the state level definition allowed users to enteronly one exemption in STEP for all taxes applicable in that state. Otherwise,it would be necessary to enter a separate exemption for each country, county,city, and district in the state in order to prevent calculation of taxes at thelower level jurisdictions. This, however, presented a problem for Canada.TAXWARE treats Canada as a state and the provinces as cities for purposesof determining exemptions in STEP. Setting the parameter at the state leveleventually prevented separate provincial exceptions from being recognized.

With TAXWARE 3.1, a new field was added to the STEP exemptiondefinition for Default to State. Use this field to determine on an exemption byexemption basis whether to exempt all levels of tax based on the state levelsetting or to define each level individually. A patch has been created for allsupported releases of Baan that switched the setting of the overall systemparameter passed from Baan to TAXWARE so that the individual settings ofeach STEP exemption are considered.

3 Can Baan run TAXWARE software that is on another machine? Forexample: multiple application servers directed to a main server, with the mainserver containing the database that is used by Baan as well as theTAXWARE implementation.

The TAXWARE database can be set up remotely from the application server.The TAXWARE database can be shared by multiple application servers if thetax database is placed with the database server (assuming that the multipleapplication servers share a single database server). On the other hand, youcan configure the NFS at Unix level so that the TAXWARE databasedirectories are available to other Unix systems. For each Unix system, taxAPI related environment variables must be set for the users.


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The api6.2 binary file must exist in each $BSE/bin directory (If differentUnix systems are used, api6.2 must be compiled for each system). Also,consult TAXWARE for more details about database sharing by severalsystems.

Vertex specific questions1 I am getting Vertex error 1526 in some Baan sessions. What causes this to

occur?

This is an error code 26 from Vertex. Specifically, if a four-digit code isreported from the tax provider, strip the first two digits off, and use the lasttwo digits. You can use the first two digits to narrow down the area asfollows:− 14 - geocoder error− 15 - tax error− 16 - jurisdiction error

The error 1526 is a Vertex tax register error, not a Baan application error.Contact Vertex for assistance. In some cases, dropping the register databaseand recreating it solves the problem.

The Vertex sales tax register holds the log information of tax relatedtransaction. Five sessions that update the Vertex sales tax register:− Tax Provider Calculation Utility (tccoml912m000)− Process Delivered Purchase Order (tdpur4223m000)− Print Service Order Invoices (tssma3473m000)− Create Financial Transaction for Contract Instalment (tssma6201m000)− Create Financial Transaction for Service Order (tssma6202m000)

2 Can Division Code be used in determining taxability?

No, division code is not passed from Baan to Quantum for sales and use tax.

3 Does the Baan/Quantum for Sales and Use Tax integration support invoicelevel maximum tax bases?

In order to provide line item taxability and to support ship-to/ship-fromdesignations for each line item, all transactions are processed at the line itemlevel only. There is no invoice level processing at this time.

4 Can you use store codes to segment tax information?

There is no corresponding field in the Baan application that can be tied to StoreLocation.

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Problem Likely Cause Solution

Error message: API messagenot received. Error oracknowledgement messageexpected. Error code 7.

Tax provider environmentvariables are not definedproperly.

BW Configuration does notreference the bshell where thetax provider environmentvariables have been set up.

See Chapter 6 for informationon setup of environmentvariables.

No tax returned from taxprovider for taxabletransaction.

Country of delivery notrecognized as United Statesor Canada.

Tax code is blank ondocument line.

Enter country in Country TaxProvider Register(tccom1140m000) session.

Enter tax code on documentline.

Tax exceptions defined in theTax provider are not beingpicked up in Baan.

Product category orcustomer/supplier code usedto define the exception is notidentical to the related Baanproduct category or business-partner code.

Double-check data fordifferences in spelling,capitalization, and so on. Alsobe sure that the companycodes match.

8 Troubleshooting

Troubleshooting

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GEO codeA code used together with or in lieu of address information such as the city,state/province, and Zip/postal code to uniquely identify a taxing jurisdiction. Thetax provider determines the GEO code based on the address information enteredand the county and city limits selected.

The format of the GEO code varies by tax provider. TAXWARE uses a two-digitGEO code; the GEO code together with the city, state, and ZIP code, identifies ataxing jurisdiction. Quantum uses a nine-digit GEO code that consists of a two-digit state code, three-digit county code, and a four-digit city code. A tenth digitidentifies whether the jurisdiction is inside or outside of the city limits.

ParametersVariables to which a constant value are assigned. If you change parametervalues, it changes the way in which the module operates, allowing you to adaptthe module to the specific requirements of your company.

Point of title passageThe point at which the title passes, either origin or destination, is used by the taxprovider product, TAXWARE’s SALES/USE Tax System, to determine thetaxing jurisdiction.

Product categoriesProduct categories enable the tax provider to compute tax based on the type ofproducts that are bought or sold. For example, it is common in the United Statesfor materials to be taxable and labor to be non taxable. The defined productcategories must match the product categories defined in the external tax provider.

Sales/service/rental use indicatorThe Sales/Service/Rental indicator indicates the type of tax processing requiredfor each contract type since services and rentals can be taxed differently.

Tax providerA third-party software product that facilitates the computation of tax for U.S. andCanadian taxes. To facilitate the calculation of tax in the U.S. and Canada, aninterface to TAXWARE’s SALES/USE Tax System and Vertex’s Quantum forSales and Use Tax is provided.

9 Glossary

Glossary

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Figure 51, Sample Invoice

10 Appendix A: Sample invoice

Appendix A: Sample invoice

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Several classes of errors can occur due to problems with the tax providersoftware or incorrect data passed to the interface. These errors occur infrequentlyand in most cases never appear. The following tables list the error codes that canbe passed to Baan, along with a description and cause.

Tax provider error codes

Range ofmessage codes

Description of range General cause

0-99 General communication errors. Communication failure

1100-1199 VERAZIP product error. Product problem or dataissue.

1200-1299 TAXWARE’s SALES/USE Tax System error intax calculation.

Product problem or dataissue.

1300-1399 TAXWARE’s SALES/USE Tax System error injurisdiction determination.

Product problem or dataissue.

1400-1499 Vertex Geocoder product error. Vertex product problemor data issue.

1500-1599 Vertex Quantum system tax calculation error. Vertex product problemor data issue.

1600-1699 Vertex Quantum system jurisdictiondetermination error.

Vertex product problemor data issue.

Specific tax provider error codes

Message code Type Description

api00001 Warning Must set Using Tax Provider parameter in Maintain TaxProvider Parameters (tccoml150m000) session to change APITax Parameters.

api00002 Warning Using Tax Provider parameter will be deactivated.

api00003 Warning When changing tax providers, run Address JurisdictionVerification Utility (tccoml910m000) session to reassign GEOcodes to address data.

apis0000 Warning API error occurred. Error number %d.

apis0001 Warning API request failed. Message was not sent. Error code %d.

apis0002 Warning API request failed. Message was not received. Error code %d.

11 Appendix B: Error codes

Appendix B: Error codes

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apis0003 Warning Environment variable not set for API interface. Error code %d.

apis0004 Warning API interface failed to open required files. Error code %d.

apis0005 Warning Tax provider failed to be initialized. Error code %d.

apis0007 Warning API message not received. Error or acknowledgementmessage expected. Error Code %d.

apis0008 Warning API message received out of order. Error code %d.

apis0009 Warning API message was invalid. Error code %d.

apis0010 Warning API message received from incorrect interface. Error code%d.

apis0011 Warning API message not received. Error or data message expected.Error code %d.

apis0012 Warning API Process failed to start. Error code %d.

apis0013 Warning API Process failed to open message queues. Error code %d.

apis0014 Warning API Process received bad initialization message. Error code%d.

apis0015 Warning API Process received bad action data. Error code %d.

apis0016 Warning API Message received out of sequence. Error code %d.

apis0101 Warning Point of title not set. Error code %d.

apis0102 Warning Service indicator not set. Error code %d.

apis0103 Warning API handler failed to activate. Error code %d.

apis1000 Warning Tax parameter table is not filled. Error code %d.

apis1001 Warning Tax provider is not on. Error code %d.

apis1101 Warning Invalid API action. Error code %d.

apis1102 Warning AVP ZIP master file not found. Error code %d.

apis1103 Warning AVP county file not found. Error code %d.

apis1104 Warning AVP exception file not found. Error code %d.

apis1105 Warning AVP file not found. Error code %d.

apis1112 Warning Invalid state code. Error code %d.

apis1113 Warning Invalid city or Zip code. Error code %d.

apis1114 Warning State and Zip code combination invalid. Error code %d.

apis1115 Warning State and city combination invalid. Error code %d.

apis1116 Warning State, city, and Zip code combination invalid. Error code %d.



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apis1130 Warning Zip code not valid for state code entered. Error code %d.

apis1141 Warning Zip code covers multiple city names. Error code %d.

apis1142 Warning City and state combination has multiple Zip codes. Error code%d.

apis1200 Warning AVP tax error occurred. Error code %d.


apis1208 Warning Error accessing AVP tax master file. Error code %d.

apis1209 Warning Invalid AVP tax selection parameter. Error code %d.

apis1210 Warning AVP tax master file not open. Error code %d.

apis1211 Warning Invalid AVP tax calculation parameter. Error code %d.

apis1212 Warning Error accessing AVP product file. Error code %d.

apis1213 Warning Error accessing AVP tax file. Error code %d.

apis1223 Warning AVP audit file defined as long. API requests short file. Errorcode %d.

apis1224 Warning AVP audit file defined as short. API requests long file. Errorcode %d.

apis1225 Warning Error accessing AVP audit file. Error code %d.

apis1226 Warning Error accessing AVP rental file. Error code %d.

apis1227 Warning Error accessing AVP freight file. Error code %d.

apis1228 Warning AVP calculation error not defined. Error code %d.

apis1229 Warning Error accessing AVP calculation error file. Error code %d.

apis1230 Warning AVP jurisdiction error not defined. Error code %d.

apis1231 Warning Error accessing AVP jurisdiction error file. Error code %d.

apis1232 Warning AVP jurisdiction processing not defined. Error code %d.

apis1233 Warning Error accessing AVP jurisdiction error file. Error code %d.

apis1235 Warning Error accessing AVP STEP file. Error code %d.

apis1251 Warning Incorrect transaction type or certificate present, STEPprocessing failed. Error code %d.

apis1252 Warning STEP processing failed due to blank customer number. Errorcode %d.

apis1253 Warning Error accessing AVP STEP file on subsequent call. Error code%d.


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apis1254 Warning Invalid state code. AVP STEP processing failed. Error code%d.

apis1300 Warning AVP Invalid jurisdiction error. Error code %d.

apis1301 Warning Point of title was not valid. Error code %d.

apis1302 Warning Service indicator was not valid. Error code %d.


apis1309 Warning Invalid AVP tax selection parameter. Error code %d.

apis1400 Warning Error retrieving geo code information from Vertex. Error code%d.

apis1401 Warning Error accessing Vertex Tax system. Error code %d.

apis1402 Warning Invalid city, state, Zip code combination. Error code %d.

apis1403 Warning Invalid city, province, postal code combination. Error code%d.

apis1500 Warning Vertex system error occurred in tax calculation. Error code%d.

apis1520 Warning Vertex system error occurred. Error code %d.

apis1521 Warning Vertex failed to set invoice number. Error code %d.

apis1522 Warning Vertex failed to set register write to No. Error code %d.

apis1523 Warning Vertex failed to set register write to Yes. Error code %d.

apis1524 Warning Vertex failed to set transaction type. Error code %d

apis1525 Warning Vertex failed to set product code. Error code %d.

apis1526 Warning Vertex failed to calculate tax. Error code %d.

apis1527 Warning Vertex failed to retrieve company information. Error code %d.

apis1528 Warning Vertex failed to calculate state tax. Error code %d.

apis1529 Warning Vertex failed to calculate city tax. Error code %d.

apis1530 Warning Vertex failed to calculate county tax. Error code %d.

apis1531 Warning Vertex failed to calculate state district tax. Error code %d.

apis1532 Warning Vertex failed to calculate local county tax. Error code %d.

apis1533 Warning Vertex failed to calculate local tax. Error code %d.

apis1534 Warning Vertex failed to calculate local district tax. Error code %d.

apis1535 Warning Vertex failed to set customer information. Error code %d.

apis1536 Warning Vertex failed to reset tax information. Error code %d.

apis1600 Warning Vertex invalid jurisdiction error. Error code %d.

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Several functions in the Baan Tax Provider interface logic that communicatewith the tax provider. These functions are listed in the following table.

Where-used libraries – API Tax Functions Library

Script/library code Script/library description

tccom6212 Tax Provider Calculation Utility

tccom6214 Process Tax Provider Adjustments

tccom998 DAL for tccom998

tccom999 DAL for tccom999

tccomdll0020 Tax Provider Functions Library

tccomdll0021 Address Conversion Library

The Tax Provider Functions Library (tccomdll0020) passes address, BP, product,and order/invoice data to the tax provider and receives GEO codes and tax ratesand amounts in return. It also controls whether the tax provider are updated bythe calculated tax amounts.

Several scripts in Baan make a call to the Tax Provider Functions Library for taxcalculation. Those scripts are in turn called by various other scripts in the Baanapplication whenever tax information is required. The scripts that directly call theTax Provider Functions Library are listed in the following table.

12 Appendix C: Tax provider functions

Appendix C: Tax provider functions

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Where-used libraries - Tax Provider Functions Library

Script/library code Script/library description

cislidll2001 Compose Invoices

tccom4130 Addresses

tccom6210 Address Jurisdiction Verification Utility

tccom6212 Tax Provider Calculation Utility

tcmcsdll0160 Order Calculating Routines

tdpur1101 Maintain RFQ header

tdpur307 AM for tdpur307

tdpurdll1234 Generate Purchase Order

tdpurdll4000 General Purchase Functions

tdpurdll4281 Receive Order Acknowledgement/ChangeAcknowledgement

tdsls307 Schedule Lines

tdsls4125 Back Orders

tdslsdll1000 Sales Quotation Functions

tdslsdll2000 Quicklist General Functions

tdslsdll3000 Sales Contract Functions

tdslsdll4000 General Sales Functions

tdslsdll4280 Receive Sales Schedule Releases

tdslsdll4284 Receive Sales Schedule Releases

tfacpdll0021 Create Open Entries and Postings for Self Billing

tdcat223 AM tfcat223

tfgld0103 Company parameters

tfgld1103 Journal Vouchers

tfglddll6017 Vat calculations

tfintdlltfgld Integration DLL from other packages to tfgld

whinhdll3201 Receive ASN

whinhdll4290 Export Compliance Provider Update