Sales Tax by Zip Code
 
Sales tax by zip code is a Prophet 21 function that has been developed to allow the import of tax rates by zip into the Prophet 21 system. This function is a baseline function and does not require any add on software. Sales tax rates are provided by third party vendors. There are several vendors available. Thus far Prophet 21 has assisted its customers with implementations using Commerce Clearing House (CCH) and Zip2Tax.
 
NOTE: This process is for new implementations with no shipto's or items imported. It is possible to use tax by zip code for existing databases. However additional steps and tools are required.
 
By updating the tax jurisdictions described above, the following benefits are achieved:
 
1.      Through a standard Prophet 21 import, all jurisdiction rates can be periodically updated to assure accurate sales tax rates for all jurisdictions in the united states. Tax would be charged for only jurisdictions for which the client is registered to collect tax.
2.      All new shipto’s will have jurisdictions automatically correctly applied. The feature even updates shipto’s created on the fly in order entry. Standard Prophet 21 functionality does not apply tax jurisdictions to shipto’s created in order entry.
3.      Sales tax reports are created for each state. The function allows for efficient creation of sales tax returns.
4.      Tax jurisdictions are applied during Ship to import. Therefore clients can efficiently and accurately assign tax jurisdictions to shipto’s without mapping conversions from legacy systems.
Step # Description SQL Query Instructions
1 Client Discussion of Sales Tax options    1
2 IPM or Professional Services Contract Signature    2
3 Discuss with client when future engagements may be necessary   3
4 Client Enrolment in Third Party Tax Service    4
5 Turn on Functionality   5
6 Report Code Import 6  
7 Import Tax Jurisdictions (Other) 7  
8 Import Tax Jurisdictions (Zip2Tax) 8  
9 Jurisdiction Report Code Assignment 9  
10 Assign Tax Jurisdiction G/L Accounts 10  
11 Set up Tax Group Header Records 11  
12 Set up Tax Group Zip Codes 12  
13 Tax Group Line – State Build 13  
14 Tax Group Line – Other Build 14  
15 Tax Group Line – City Build 15  
16 Tax Group Line – County Build 16  
17 Look for Missing Tax Line Assignments 17  
18 Set Tax Group Records for Taxable States 18  
19 Set Tax Group Records for Non Taxable States 19  
20 Item Tax – All Taxable 20  
21 Item Tax – Not Taxable 21  
22 Item Tax Adjustment – By State 22  
23 Update Tax Groups on Ship to’s 23      
24 Review tax_hdr_zip for groups overlapping potential No-Tax Ship_to Tax Groups  24      
25 Create Tax_Group_hdr's for No Tax Tax Groups 25      
26 Create Tax Group Zip Rangers for No Tax Groups 26      
27 Create No Tax Tax Group Lines 27      
           
     
                       ERP  >>> AC >>> Processes >>> Sales Tax by Zip Code                       Updated: April 2, 2020