Cascading Rules

Rule Order

Y

4999

Code

Y

None

No Tax Checkbox

Y

Checked

Start Date

Y

Set to start date of earliest custom rule you will configure.

Order

The order in which the rules are processed.

Active

Indicates whether the rule is active (Y) or inactive (N).

Product

The product exception to test for. To create product categories see Edit Products.

Parent Product

The parent product of the exception to test for.

Rate

One of the defined short Rate or Fee codes from the Cascading Rates page.

Qualifiers

If Y, indicates that this rule specifies Rule Qualifiers.

Output

If Y, indicates that this rule specifies Rule Output.

Authority Type

Y

The level at which you want the rule to apply. Leaving this set to –Any– may create undesirable effects; see the Note on the Cascading Rates and Fees page for more information.

Show Rule Qualifiers

Opt.

Display the Rule Qualifiers page, which enables you to set rule qualifiers based on previous taxes calculated, customer licenses, reference lists, or values contained in specified input XML elements.

Show Rule Output

Opt.

Display the Rule Output page, which includes additional data which will be audited and returned in the output XML each time this rule is applied.

Rule Order

Y

The order in which the rule is applied. Lowest-numbered rules are processed first. Custom rules fall in the range 0-4999, while Tax Data Provider rules fall in the range 5000-9999.

No Tax

Opt.

Indicates that no tax is charged for this rule.

Exempt

Opt.

Indicates full exemption when checked.

Code

Y

Select one of the following:

• A Cascading Rates and Fees associated with this authority.
• A Rates and Fees associated with this authority. Note that only Tax Data Provider rates/fees can be selected (Custom Data Provider rates are not available).

Rate Set

Y, if Exempt or No Tax is selected

One of the defined Authority Rate Sets associated with this cascading rule's authority.

Product Name

Opt.

The product exception to test for.

Either an individual Product or a Material List, but not both, can be specified on a rule. If a Material List is specified, any product on that list will match the rule. If a Product is specified, only that product will match the rule.

To select a product:

1. Click the Find icon to display a pop-up Products list for the current Tax Data Type and Product Group.
2. Select a product by:
• Navigating the list, and then clicking on the desired product.
• Entering an optional Product Name or Commodity Code, and then clicking Search. If more than one match occurs, select the desired item from the Search Results menu.

Material List

Opt.

One of the configured Material Sets and Lists belonging to an Authority Material Sets.

Either an individual Product Name or a Material List, but not both, can be specified on a rule. If a Material List is specified, any product on that list will match the rule.

Related Charge

Opt.

If checked, indicates that this rule can apply to a related charge when such a product is included in a transaction. If a related charge is submitted and the selected rule's Related Charge checkbox is not selected, the related charge will be treated as a standard product.

For more information, see Dependent Product Taxability.

When selected, the taxable basis of this line item is adjusted according to the taxability of the non-allocated items in the invoice. For additional information, see Allocated Charges.

Calculation Method

Opt.

The calc method that should be applied to tax situations that use this cascading rule. Methods are:

• COFINS Importation (10): Brazilian federal-level VAT.
• Flat Fee (8): Tax consists of a flat fee assessed per the rule.
• Fee on Quantity (9): Tax consists of a fee multiplied by the quantity indicated in the transaction. Note that if a quantity is not passed in with a transaction, quantity will be set to 1 and the appropriate fee assessed.
• Grossed Up (7): Tax is calculated based on (rate * basis amount).
• Inclusive Tax (Fee) (15): An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the fee amount.
• Inclusive Tax (Fee on Quantity) (16): An inclusive fee that, once determined, is subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the fee amount.
• Inclusive Tax (Rate) (14): An inclusive tax that, once calculated, subtracted from the gross amount for the line so that additional calculations do not result in an additional tax on the inclusive tax.
• IPI (Brazil Only) (6): Brazilian federal-level VAT.
• ISS (Brazil Only) (19): Brazilian municipal-level VAT.
• PIS Importation (11): Brazilian federal-level VAT
• Tax on Contributing Authorities (17): Tax is calculated only on the tax amounts calculated for the contributing authorities (a "tax on tax" calculation).
• Tax on Gross Amount (1): Tax is calculated on the gross amount only.

• Tax on Gross and Contributing Authorities (18): Tax is calculated on the gross amount, which is the original amount plus all of the tax amounts calculated for the contributing authorities (a "tax on gross plus previous tax" calculation).

  If no Contributing Authorities are present for the transaction, a Tax on Gross Amount calculation takes place instead.

• Brazil (Standard)(5): Brazilian state-level VAT.

For information on calculation methods in Brazil, see Brazil Tax Calculations.

Calculation Method (Continued)

Opt.

These methods have been superseded by the Contributing Authorities feature.

Invoice Description

Opt.

The description that is returned to the business application for use on the invoice that is to be generated.

Tax Type

Y

One of the supported tax types. The list shown here is dependent on the Tax Data Type (International or US).

Basis Percent

Opt.

An optional basis percentage to apply for the rule. Enter a percentage to 10 decimal places. For example, 50.25 = 50.25%.

Input Recovery Amount

Opt.

This field applies to VAT transactions only, and is mutually exclusive with Input Recovery Percent. Indicates the input recovery amount to be audited whenever this rule is applied to a transaction whose direction is input. The audited amount cannot exceed the tax amount for the transaction. If neither Input Recovery field is populated, input recovery is assumed to be 100% of the tax amount.

For more information, see VAT Recoverability.

Input Recovery Percent

Opt.

This field applies to VAT transactions only, and is mutually exclusive with Input Recovery Amount. Indicates the input recovery percent of the tax amount to be audited whenever this rule is applied to a transaction whose direction is input. The resulting audited amount cannot exceed the tax amount for the transaction. If neither Input Recovery field is populated, input recovery is assumed to be 100% of the tax amount.

For more information, see VAT Recoverability.

Tax Code

Opt.

An optional Tax Codes Example to match in the transaction input XML data. If a tax code is entered here, it must be present in the transaction data or the rule cannot be matched. Also, if the rule specifies a rate set, any rate set rate you want to match must either contain the same tax code entered here or a blank tax code, or the rate cannot be selected.

Unit of Measure

N/A

A deprecated field which was previously used to indicate an optional unit of measure to relate to a flat fee (for example, GALLON, TIRE). Please see the Units of Measure Conversion for a description of how Units of Measure are maintained and converted by Determination.

Exempt Reason

Y

An optional Exempt Reason to match either:

• The transaction's <EXEMPT_REASON> input XML element.
• An Exempt Reason stored on an exemption certificate used in the tax calculation for this transaction.

Reporting Category

Opt.

An optional category to aid in the creation of reports and returns. For example, you can include Reporting Categories for specific industries.

Start Date

Y

The beginning effective date (MM/DD/YYYY) for the cascading rule.

End Date

Opt.

The ending effective date (MM/DD/YYYY) for the cascading rule. If you do not enter a date here, the rule will remain in effect indefinitely.

Tax Treatment

Y

Indicates one of the following:

• -None- (Default): No special tax treatment.
• Deferred: Amount recorded as a statistical value in the host system and not posted to the general ledger.
• Deferred Invoice: Amounts are not statistical values and can be posted to the relevant general ledger account.
• Deferred Payment: Payments received for invoices that had deferred taxes calculated on them.
• Withholding: Any tax resulting from application of this rule will be withheld.

For more information, see Deferred Taxes.

Comment

Opt.

An optional comment. If a tax code is entered here, it is returned in the Output XML, overriding any ERP Tax Code stored for the selected authority as indicated on the Edit Authorities page.