ORD700 – Tax-Exempt Order Recalculation

As of 7.5.0, tax exemption information can be defined at the state level for individual, company, committee, and subgroup records. For more information, please see Adding Tax Exempt Information to a Constituent's Record in CRM360®. 

This batch process selects uninvoiced order lines and re-evaluates them to see if the tax exemption calculations processed on the order date are still accurate for the current date. This batch process should be scheduled to run as frequently as your organization fulfills orders.

If the CUS “TAX_EXEMPT_ONINVOICE” application parameter is set to ‘N’, ORD700 will not select any order lines.  

For each order line selected, the process evaluates each customer to determine if the customer meets either of the following:

·            Tax-exempt when the order line was created, but currently not tax-exempt.

·            Not tax-exempt when the order line was created, but now currently tax-exempt.

If the customer is no longer tax-exempt and the product and customer location is taxable, but no tax currently exists on the order line, the process calculates the tax and adds it to the order line.  If the customer is now tax-exempt, but he/she was originally charged tax on the existing, uninvoiced order line, the batch process removes the tax amount.

If you run the batch job in EDIT mode, the application only produces a report detailing the records selected and the possible new tax calculations for each order line without updating the database. Running the ORD700 batch process in PROD mode produces the same report, but also updates the order line tax calculations in the database accordingly.

If a re-calculation occurs, the process calculates tax by calling the UpdateTax stored procedure. The tax calculation is based on the order line product setup. Typically, the tax is Sales Tax but it could be other taxes, such as VAT tax. The order lines and type 4 Far_Txn records are updated by the ORD700 batch process and MODOPER field is populated with “ORD700.”

To determine whether the customer is taxable or not, the process evaluates whether a current record exists in the Cus_Tax_Exempt_Info table for the state. By default, the customer selected is the ship-to customer, however, the tax calculation could be based on the bill-to customer. It just depends on the value your organization entered for the “Tax Level” Organization Unit parameter in the Tax Information section of the Organization Unit Maintenance (APP003) screen.

The value in the CUS “TAX_REEXEMPT_SELECTION” application parameter identifies whether only proforma orders are selected (parameter value is PROFORMA) or both proforma and uninvoiced active order lines are selected (parameter value is UNINVOICED). An uninvoiced order line is an order line where invoice number is null. Note, even if an INV order has been paid, it remains as uninvoiced until it is shipped.

Order lines where BLOCK_SALES_TAX = ‘Y’ are not selected by this process.   

For calculation purposes, you need to run ORD700 after you run ORD650, but before you run MBR655 and/or SUB655, as well as INV620, ADV620, and ORD660.

The frequency of when you should run it is dependent on your number of tax-exempt customers. It’s worth running nightly if your organization works with a large number of tax-exempt customers.

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