Tax Calculation Examples
In the examples below:
- Either installation, packing and production items are entered, or only production items.
- Either no Shipment was created, a single shipment was created, or multiple shipments sent to different states
- All Orders have a single shipping Order Item (FEDEX or VAN1)
Example A
No Shipment. Tax Rate for ShipTo Address= Florida 6.5%. FEDEX Order Line Item = $50
Items: Only Production Order Items
Summary: The Invoiced Tax Calculations display each Production Order Item with its value and under each, a line with the language “Unshipped Value” with the value that was not shipped in brackets. This value is applied to the tax rate belonging to the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
The Shipping charged to the customer ($50.00) appears as well as its own line item and below it is a line with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, since there are no Shipments, the sum of Suggested Shipping Price values is 0.00, so the value in brackets, and therefore taxed using the Order’s ShipTo Address jurisdiction is equal to the Price of the shipping Order Item.
Example B
No Shipment. Tax Rate for ShipTo Address = Florida 6.5%. FEDEX Order Line Item = $50
Items: 10CDF (Production Code), VI (Installation Code), and BOSWC (Packing Code) included in Order.
Summary: The Invoiced Tax Calculations display the Production Order Item with its value and below it is a line with the language “Unshipped Value” with the value that was not shipped in brackets. This value is taxed using the tax rate belonging to the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
Also displayed are the Order’s Installation and Packing Items. These are followed by lines with the language “Unshipped Packing Value” and “Unshipped Install Value” each with a value in brackets.
The Shipping charged to the customer ($50.00) appears as well as its own line item and below it is a line with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there are no Shipments, so the sum of Suggested Shipping Price values is 0.00. The value in brackets is equal to the Price of the shipping Order Item, and is taxed using the Order’s ShipTo Address jurisdiction.
Example C
Tax Rate for ShipTo Address = Florida 6.5%. Single Shipment. SuggShipSalePrice = $37.50; FEDEX Order Line Item = $50
Items: Only Production Order Items, No VI (Installation Code), and BOSWC (Packing Code) included in Order Lines.
Summary: The Invoiced Tax Calculations display the Production Order Items with their values and below them are lines with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each Item itself. [In the purple, yellow and green boxes]
Beneath that is a second line connected to each production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
If there is a difference between the Shipment’s Suggested Shipping Sale Price and the sum of Shipping charges in the Order, a line is added to the Tax Calculation with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there is one Shipment with a Suggested Shipping Price of $37.50. The value in brackets is equal to the Price of the shipping Order Item $50 minus $37.50 [12.50], and is taxed using the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
Example D
Tax Rate for ShipTo Address = Florida 6.5%. Single Shipment. SuggShipSalePrice = $37.50; FEDEX Line Item = $50
Items: 10CDF (Production Code), VI (Installation Code), and BOSWC (Packing Code) included in Packing List
When a Production Code, Install Code, and Packing Code are all fully “shipped”, their values are taxed (green and yellow), and the Shipping Tax is distributed across Production Items (red) + an entry covering the difference between the Shipment’s SuggShipPrice and the sum of Shipping Order Items in the Order (black).
Summary: The Invoiced Tax Calculations display the Production Order Items with their values and below them are lines with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each Item itself. [In the purple boxes]
Beneath that is a second line connected to each production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the production items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
If there is a difference between the Shipment’s Suggested Shipping Sale Price and the sum of Shipping charges in the Order, a line is added to the Tax Calculation with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there is one Shipment with a Suggested Shipping Price of $37.50. The value in brackets is equal to the Price of the shipping Order Item $50 minus $37.50 [12.50], and is taxed using the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%. [In the black box]
Installation and Packing Items are each summed together by shipment and taxed on a line with the language “Shipment#999999: Tax on Packing Value [99.99]” [In the yellow box] and “Shipment#999999: Tax on Install Value [99.99]” [In the green box] respectively. These are taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
Example E
Tax Rate for ShipTo Address = Florida 6.5%. Two Shipments. Tax Rate = Florida 6.5%, and California 7.5%. SuggShipSalePrice = $145.00 each; VAN1 Line Item = $400
Items: Only Production Order Items, No VI (Installation Code), and BOSWC (Packing Code) included in Order Lines.
Summary: The Invoiced Tax Calculations display the Production Order Items with their values and below them are lines with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each Item itself. [In the purple, yellow and green boxes]
Beneath that is a second line connected to each production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Orlando Florida’s 6.5%.
If there is a difference between the Shipment’s Suggested Shipping Sale Price and the sum of Shipping charges in the Order, a line is added to the Tax Calculation with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there are two Shipments with a Suggested Shipping Price of $145.00 each. The value in brackets is equal to the Price of the shipping Order Item $400 minus ($145 x2) [$110.00], and is taxed using the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%.
Example F
Tax Rate for ShipTo Address = Florida 6.5%. Two Shipments. Tax Rate = Florida 6.5%, and California 7.75%. SuggShipSalePrice = $11.41 each; FEDEX Line Item = $50
Items: 10CDF (Production Code), VI (Installation Code), and BOSWC (Packing Code) included in both Packing Lists
When a Production Code, Install Code, and Packing Code are all fully “shipped”, their values are taxed (green and yellow), and the Shipping Tax is distributed across Production Items (red) + an entry covering the difference between the Shipment’s SuggShipPrice and the sum of Shipping Order Items in the Order (black).
Summary: The Invoiced Tax Calculations display the Production Order Items with their values and below them are lines with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each Item itself. [In the purple boxes]
Beneath that is a second line connected to each production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the production items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Orlando Florida’s 6.5%.
If there is a difference between the Shipment’s Suggested Shipping Sale Price and the sum of Shipping charges in the Order, a line is added to the Tax Calculation with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there are two Shipments each with a Suggested Shipping Price of $11.91. The value in brackets is equal to the Price of the shipping Order Item $50 minus ($11.91x2) [$27.18], and is taxed using the Order’s ShipTo Address jurisdiction, in this case Orlando Florida’s 6.5%. [In the black box]
Installation and Packing Items are each summed together by shipment and taxed on a line with the language “Shipment#999999: Tax on Packing Value [99.99]” [In the yellow box] and “Shipment#999999: Tax on Install Value [99.99]” [In the green box] respectively. These are taxed using the tax rate belonging to each Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Orlando Florida’s 6.5%.
If the Shipments remained marked Pending or only Transmitted, and the Order was then prematurely Invoiced, the Invoice’s tax calculations would be tabulated as if the Shipments did not exist and the Order’s Ship To Address would be used for the Sales Tax nexus.
Example G
Tax Rate for ShipTo Address = NYC 8.875%. Two Shipments. Tax Rate = Hawaii 4.5%, and California 7.5%. SuggShipSalePrice = $12.16 for each; FEDEX Line Item = $50
Items: 10CDF (Production Code), VI (Installation Code), and BOSWC (Packing Code) included in both Packing Lists
Not All Items are in Packing Lists.
Summary: The Invoiced Tax Calculations display the Production Order Items with their values and below them a line with the language “Unshipped Value” with the value that was not shipped in brackets. This value is applied to the tax rate belonging to the Order’s ShipTo Address jurisdiction, in this case NYC’s 8.875%.
Further below are lines with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each shipped Item itself. [In the purple boxes]
Beneath that is a second line connected to each shipped production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the production items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Hawaii’s 4.5%.
If there is a difference between the Shipment’s Suggested Shipping Sale Price and the sum of Shipping charges in the Order, a line is added to the Tax Calculation with the language “Tax on Shipping Mark-Up” with a value in brackets that is calculated as the sum of shipping item code values in the Order minus the sum of Suggested Shipping Price values in related Shipping records. In this example, there are two Shipments each with a Suggested Shipping Price of $15.20. The value in brackets is equal to the Price of the shipping Order Item $50 minus ($15.20x2) [$19.60], and is taxed using the Order’s ShipTo Address jurisdiction, in this case NYC’s 8.875%. [In the black box]
Installation and Packing Items are each summed together by shipment and taxed on a line with the language “Shipment#999999: Tax on Packing Value [99.99]” [In the yellow box] and “Shipment#999999: Tax on Install Value [99.99]” [In the green box] respectively. These are taxed using the tax rate belonging to each Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Hawaii’s 4.5%.
Lines for Packing and Installation Items that were not put into a Shipment are summed in a line containing the language “Unshipped Packing Value” and “Unshipped Install Value” respectively, each with a value in brackets. These are taxed using the Order’s ShipTo Address jurisdiction, in this case NYC’s 8.875%.
Example H
Tax Rate for ShipTo Address = NYC 8.875%. Two Shipments. Tax Rate = Hawaii 4.5%, and California 7.5%. SuggShipSalePrice = $13.30 for each; FEDEX Line Item = $26.60
Items: 10CDF (Production Code), VI & DSI (Installation Codes), and BOSWC & WHP (Packing Codes) included in Packing Lists
Not All Items are in Packing Lists.
Summary: The Invoiced Tax Calculations display the Production Order Items with their values. In this example all production Items were assigned to a Shipment, so there is no line with the language “Unshipped Value” with the value that was not shipped in brackets.
For each production Item per Shipment is a line with the language “Shipment#999999: Production Item Description (Tax on Shipped Value)”. This is the tax on each shipped Item itself. [In the purple boxes]
Beneath that is a second line connected to each shipped production item with the language “(Shipping Tax Allocated)”. [In the red boxes] The tax on shipping charges is split up over the production items within each shipment in the following way: The Shipment’s Suggested Shipping Sale Price is split apart based on the percentage value of the individual Items in the Shipment. Each split amount is taxed using the tax rate belonging to the Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Hawaii’s 4.5%.
In this example, the sum of the Shipments’ Suggested Shipping Sale Price and the sum of Shipping charges in the Order are equal ($13.30x2 = $26.60) so there is no line added to the Tax Calculation with the language “Tax on Shipping Mark-Up”. The entire $26.60 is taxed under the two Production lines (13.30 @7.75% and 13.30 @4.5%).
Installation and Packing Items are each summed together by shipment and taxed on a line with the language “Shipment#999999: Tax on Packing Value [99.99]” [In the yellow box] and “Shipment#999999: Tax on Install Value [99.99]” [In the green box] respectively. These are taxed using the tax rate belonging to each Shipment’s ShipTo Address jurisdiction, in this case Anaheim California’s 7.75% and Hawaii’s 4.5%.
Lines for Packing and Installation Items that were not put into a Shipment are summed in a line containing the language “Unshipped Packing Value” and “Unshipped Install Value” respectively, each with a value in brackets. These are taxed using the Order’s ShipTo Address jurisdiction, in this case NYC’s 8.875%.
