- Automates All Price and Tax Calculations by State and District
- Maximizes Order Delivery Performance
- Minimizes Effort Required in Preparing State and Vendor Activity Reporting
- Automatically Interfaces to Major Retail Chains
- Supports Prepaid Stamp Tax
This module in conjunction with the Sales Analysis and Order Entry modules, provides management personnel with the ability to monitor and adjust product specific taxes per state for cigarettes, tobacco products, and selected grocery products. For state-controlled items management is provided the means to define legal minimum selling prices per state, standard selling prices per state, and Suggested Resale Prices (SRP prices).
The information displayed in this module has its origin in a number of sources. The line item entry process and the Invoice Generation process, and is derived from the sales order entry aspect of the Order Entry module. The line items shipped by Shipment and by Item process is derived from the Shipment history in the Sales Analysis module, and the state, county, and local tax districts are first derived by their tax districts in the initial setup in the DMACS Globule module.
Product Specific Taxes by State
Product specific taxes can be defined as tax percentages, per-unit tax amounts, or per-unit face value stamp tax amounts for each state, county, and local tax district.
Product specific taxes do not override standard sales taxes; instead, they are added to the discounted unit price of each item, and that total discounted unit price for the item can be then taxed with standard sales tax percentages if the customer is charged sales tax.
Product specific taxes for cigarettes are in the form of a stamp tax (dollar value) per carton. This is a dollar tax that is applied by the state and product code. For example, the stamp tax for a carton of any one brand of cigarettes is different when sold in one state as opposed to being sold in another state.
Product specific taxes for other tobacco products and sundry items are based on a combination of the product code and the sales order tax district (state, county, and local). While DMACS defines state, county, and local sales tax in a percentage format, the product specific taxes for a tax district can be defined in either percentage or dollar format.
Product specific taxes differ from standard sales tax in that they are added to the discounted unit price of each sales order line item to which they apply. They are not accumulated on the sales order header as are sales taxes, but are instead recorded on the line item record for inclusion on the invoice for each shipment.
State Sales Prices
State Sales Prices can be defined as the legal minimum selling prices per state, standard selling prices per state, and Suggested Resale Prices (SRP prices). A standard selling price applies to all items in a given product code that are sold to a given state. Within a state and product code, standard selling prices can be optionally defined by UPC vendor numbers as well. For example, a carton of cigarettes has a different standard price when sold to a customer in one state as opposed to a customer in another state.
During sales order entry, if the price for a line item is automatically determined by the system (the price is left blank during order entry) and a standard state sales price exists for that item, then that standard state sales price will override any other selling price for that item, including contract pricing that may have been set up with the customer that is ordering the item. However, if a standard state price is used for the line item, the normal Order Entry pricing logic will still be applied that determines whether a discount percentage applies to that price.
The GR module provides the means to define legal minimum sales prices and Suggested Resale Prices (SRP) by customer class code within a given state and product codes for chain stores, independent stores, stampers, etc. Within a given state, product code, and customer class, minimum sales prices and SRP prices can be optionally defined by UPC vendor number as well.
The requirement for legal minimum sales prices per state, product code, UPC vendor (optional), and market type is the real capability that drives this module. Once the discounted unit price is determined for an item (either manually entered or system-calculated) and the system has applied its minimum state sales prices and product specific taxes to that unit price, a pricing library will compare that price to the cost of the item (as long as the price code on the order is not “priced at no charge”). If the discounted unit price is less than the cost of the item, then the system automatically adjusts the discounted unit price to the item’s cost. The legal state minimum prices must be in place in order to catch those instances during order entry when the price that is either entered or automatically determined by the system is below the legal state minimum price for which that item can be sold. In these cases, the prices must be automatically adjusted up to the legal state minimum.