Setting up Salesforce taxes

SuitePOS can be configured easily in Salesforce by setting the tax code and tax rate on the POS Settings record. The can then be applied to a group of terminals - typically representing a group of store locations. For more complex tax situations, Avalara's Avatax can be used. In this situation, Avatax ensures the sales tax calculations are correct no matter where the stores are located. This tax amount is then written to the Transaction Record in Salesforce. 

Setting up Sales Tax

You first define your tax codes and then reference those tax codes and set the rate in the POS Settings Record. 

To use Avatax, you activate the Avatax Module and that tells SuitePOS to use Avatax to determine the sales tax. The transaction record written will contain the Tax Code from the POS Settings record and the tax calculated using Avatax. 

Salesforce Tax Object:





Salesforce POS Settings - Setting up taxes:

Note: 'Set Tax at Line Item" is currently ignored.





When using Avatax, it is better to set up a new tax code "AVATAX" and assign that code on the POS Settings record. 

Supported Countries

With consideration to the limitations set forth for credit card processing, SuitePOS can support most retail tax configurations for different countries. 

Sales Order Consideration

Pre-requisite

SuitePOS Sales Order Module must be purchased

Sales Orders are sales that are fulfilled and shipped later (store pickup or direct to the shopper).In other words, there is a fulfillment process that happens. In this situation, the tax that is based off the ship-to address and whether or not you have nexus there. With Sales Orders, you must use Avatax Module, that way the taxes are calculated accurately and not based off the location of your store.

Customer Consideration

As far as SuitePOS is concerned, customers (in Salesforce) are either taxable or not depending on the taxable flag.  If a customer is set to not taxable, the whole transaction is not taxable.

Limitations of Taxation

Most retailers will be fine how SuitePOS handles taxes for Salesforce. However, some tax situations may not have coverage. 

• Items are taxed in one jurisdiction. But not in another. 
• Items taxed have special rules in a particular jurisdiction. eg. clothing exceptions in NYC based on $ amount. 
• Tax groups comprising of more than one tax amount (aggregated or non-aggregated) are used. eg. British Columbia (Canada) consist of  both a GST and PST tax item. 

All these situations can be resolved by using Avatax. The added bonus is that Avatax is more efficient and accurate regarding tax calculations.

SuitePOS Avatax

Pre-requeisite

SuitePOS Avatax Module must be purchased

Complex tax situations are handled by signing up for the Avatax service. This service is used by both SuitePOS to get the tax based on the SuitePOS cart. In SuitePOS, the Avatax module is activated and configured and the products are set up with specific Avatax tax codes. 

Salesforce POS Settings - Setting up Avatax:

Note: "Sales Tax %" and "Set Tax at Line Item" fields are ignored for normal Avatax calculations. However, "Sales Tax %" must be set to a value (along with "Avatax Backup Tax Code") should the Avatax service not be available. This allows SuitePOS to still write the record even though the sales tax may be wrong.





Salesforce Products - Setting up Avatax Codes:



Discounts and Promotion Consideration

If you are using a whole order discount (or promotion) the tax calculation for the discount is prorated across taxable and non taxable items. 

Manufacturer Rebates

In all cases, discounts are applied before tax and not after. In other words, we do not support certain situations such as manufacturer rebates in the USA (where discounts are applied after the tax is calculated). 

Cross Store Location Returns and Taxes

In order to maintain consistency, correct refunding and tax accuracy, returns are processed using the tax basis of the original sale. So if you sell an item in NYC but return it in NJ, the return uses NYC taxation (rate and code).

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