How Do you use ZipSales ™?
ZipSales Sales Tax Integration
Beginning with ProfitMaker version 8.20.00, the capability to integrate with ZIPSales Database has been added. ZIPSales Database provides a comprehensive sales tax rate update service to reduce the time it takes to maintain the constantly changing rates/jurisdictions. Using this service will aid in more accurate and less manual accumulation of sales tax information in all jurisdictions in which you report.
Depending on your ZIPSales Database subscription service, you can request sales tax updates on a
pre-determined schedule, such as a monthly basis, and reduce time and human error in calculating the proper tax rate for a specific location.
Setup
This does require the purchase of a subscription service through ASI Computer Systems. As part of that
subscription service, ASI Computer Systems will provide you the special that allows direct importing and
updating of tax codes. Please contact upgrades@asicomp.com for details.
Procedure
Based on your subscription service agreement, you will receive an email notification informing you of a new ZIPSales Database update file, along with a user login and password to access the data website. The
associated Zip file that will be available will need to be copied to a location that is accessible within the
ProfitMaker program. It is suggested that you save these files to a folder such as F:\ZIPSales\ with sub-folders created to store the various files associated with each update. For example, “Jan_07”, “Feb_07” etc…
Once the files are extracted to the proper directory, select the menu option “Update Taxes from ZIPSales”. The following window will display:
Enter the correct location of the most recent updated ZIPSales Database files. If you wish to update specific state, move the “States” bullet to “Selected” and enter the standard two-character state abbreviation.
Version of ZipSales to use:
- Select the CCH Sales Tax Rate and Taxability Database
- ZipSales data base will be the legacy data for persons already using zip sales.
The other checkboxes will control various sections of the report that are displayed once the tax records have been created or updated. Subsequent processing will update the tax rates and/or add new tax codes if a new tax jurisdiction record is found in the ZIPSales Database files.
Once this process is complete, you may review tax code maintenance for the newly created or updated tax codes. One of the primary goals is to assist in more accurate reporting by jurisdiction location. You will notice that the updated files will include state, city, county and locality descriptions. Additionally, the creation of the tax code master follows a very specific setup. For example: State codes will be defined by a two-character code. County codes will contain five-characters. City will contain ten-characters.
Any local taxes will be created based on the county code plus identifiers for local city, local county and local district level taxation. A tax code that contains the letter LCO indicates a local county level tax, LCY indicates a local city level tax and LDI will indicate a local district level tax. The locality description will describe the tax.
Once you have created all the potential tax codes during the “Update Taxes from ZIPSales”, the next step is to assign those tax codes to your existing customer and ship to master records. This can either be done manually by editing each master record or can be condensed provided the existing tax codes were created to easily divide reporting jurisdictions. If that is the case, a new menu option has been created “Change Tax Code Info in Masters”. This option will allow you to enter your existing tax code and allow you to select the corresponding ZIPSales tax codes. For example, let’s say for a specific county you have a current tax code that is based on a combined rate that includes a county and a local county tax. With the new ZIPSales created tax codes, there are now two separate records available that will split the tax rate correctly and allow you to report more accurately without the need for additional manual calculations to be performed.
The initial opening window will describe in more detail as to when this process should be used and what the impact will be.
The next window includes an example where there is a single tax code (053) that covered two distinct jurisdictions for a combined rate of 2%. In this instance the existing customer and ship to code master records that contained (053) will be updated with the new tax codes that splits the 2% into their respective jurisdictions.
Note: The “Change Tax Code Info in Masters” does not affect orders in process. Orders in process will
require manual modifications if you wish to enable the more accurate reporting that is available with the
ZIPSales Database special. Depending on the size of your customer database, states that you must report
sales tax for will determine the amount of time and effort that it will take to fully migrate to the new tax
codes that are created and maintained through the ZIPSales Database interface.
Procedure for Updating ZIPSales on a monthly basis
Based on your subscription service agreement, you will receive an email notification informing you of a new ZIPSales Database update file, along with a user login and password to access the data website. The associated Zip file that will be available will need to be copied to a location that is accessible within the ProfitMaker program. It is suggested that you save these files to a network folder such as ZIPSales with sub-folders created to store the various files associated with each update. For example, “Jan_07”, “Feb_07” etc.
Once the files are extracted to the proper directory, select the menu option “Update Taxes from ZIPSales”. The following window will display: Enter the correct location of the most recent updated ZIPSales Database files. If you wish to update specific state, move the “States” bullet to “Selected” and enter the standard two-character state abbreviation. The other checkboxes will control various sections of the report that are displayed once the tax records have been created or updated. Subsequent processing will update the tax rates and/or add new tax codes if a new tax jurisdiction record is found in the ZIPSales Database files.
Customer Menu, Maintenance, Match Cust/ShipTo Tax Codes to Zip Code Table
This option will update the tax codes on your customer and ship to masters based on the
matching zip code table's tax codes.
If the customer master or ship to code master contains a Tax Certificate # in the Tax ID # field or this field is not blank, this option will not be updated unless the "Update customers/ship to's containing a Tax ID #" checkbox has been checked.
Customer Menu, Maintenance, Change Tax Code Info In Masters
Change Tax Code Info in Masters Option vs. Renumber Tax Code Option
When to Change Tax Code Info In Masters
Use this option to consolidate or split your tax codes. Example: Previous tax code was set up with a 7.50% rate to include state and county. Your company has now set up separate tax codes for state and county sales to allow for individual reporting. This program allows you to input the old tax code and the new tax codes that will replace the old tax code. The tax codes will only be changed in the customer/ship to masters and zip code tables. Orders and order history will not be affected.
When To Renumber Tax Codes
Only use this option when you want to renumber your tax codes to put them in a new number/character sequence. This option will delete the old tax code and create an identical new one. The old code will be changed to the new code in all data in the system which contains tax codes, including customers/ship to’s, orders, order history, zip code tables, etc. This option should not be used if trying to make tax rate changes.
Important! If you have any questions regarding which option to use, please contact the ASICS Support
Department at 319-266-7426.
Reports, Customer-Receivables, Sales Tax Jurisdiction – Accrual
Accounting summary report which prints the total for one unique entity including taxable sales and freight, non-taxable sales and freight, and tax amount. It includes details is checked, a breakdown of taxes by state, county and city also prints.
This accrual report allows you to print the sales tax detail records or a summary of the sales tax detail records for the selected date range. The figures are grouped by state (jurisdiction) and tax code description.
Only sales tax detail records for invoices are included in this report. If a tax code adjustment was made to the tax code without specifying an invoice, this will not be included in this report.
What are sales tax detail records?
Each time invoices are created, a sales tax detail record is created for each invoice. This record stores the customer and invoice numbers, as well as the taxable and non-taxable sales and freight figures and the sales tax amount.
Tax code adjustment records are also created when a tax code adjustment is made to an invoice. This may be done in the Cash Receipts/Adjustments or the Tax Code Adjustments program.
Sales tax detail records are cleared prior to a specified date when you run the Clear Sales Tax Detail program as part of your month end closing procedures.
States – The selection in this option will determine the number of records that will display according to the option highlighted. All, Select, or Range of states.
Tax Codes - The selection in this option will determine the number of records that will display according to the option highlighted. All, Select, or Range of Tax codes.
Include detail on report - Sales Tax Jurisdiction - If selected, the sales tax detail records will print on the report with the sales tax totals.
Page Eject by State - Sales Tax Jurisdiction - If selected, each state will begin printing on a new page.
Date Range - Sales Tax Jurisdiction - Enter a beginning and ending date range to include in the report. This date determines the detail records either accumulated into the totals and the sales tax detail records printed on the report.
Once this process is complete, you may review tax code maintenance for the newly created or updated tax codes. One of the primary goals is to assist in more accurate reporting by jurisdiction location. You will notice that the updated files will include state, city, county and locality descriptions. Additionally, the creation of the tax code master follows a very specific setup. For example: State codes will be defined by a two-character code. County codes will contain five-characters. City will contain ten characters. Any local taxes will be created based on the county code plus identifiers for local city, county and district level taxation. A tax code that contains the letter LCO indicates a local county level tax, LCY indicates a local city level tax and LDI will indicate a local district level tax. The locality description will describe the tax.
The next step is to assign those tax codes to your existing customer and ship to master records. This can either be done manually by editing each master record or can be condensed provided the existing tax codes were created to easily divide reporting jurisdictions. If that is the case, a menu option has been created “Match Customer/Ship To Tax Codes to Zip Code Table” is available for updating purposes.
This option will update the tax codes on your customer and ship to masters based on the matching zip code table's tax codes.
If the customer master or ship to code master contains a Tax Certificate # in the Tax ID # field or this field is not blank, then the master will not be updated unless the "Update customers/ship to’s containing a Tax ID #" checkbox has been checked.
This option will allow you to enter your existing tax code and allow you to select the corresponding ZIPSales tax codes. For example, let’s say for a specific county you have a current tax code that is based on a combined rate that includes a county and a local county tax. With the new ZIPSales created tax codes, there are now two separate records available that will split the tax rate correctly and allow you to report more accurately without the need for additional manual calculations to be performed. The initial opening window will describe in more detail as to when this process should be used and what the impact will be.
After you have ran these procedures then your tax codes will be updated with the latest tax percentages