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DealerTeam

Deals and Sales Tax

Learn how to set up and configure the objects necessary to calculate sales tax on Deals, Aftermarket Items, and Inventoried Parts.

Taxable Transactions

Calculating sales tax happens when building three different types of transactions in DealerTeam: Deals, Service Repair Orders, and Rental Agreements. The method for calculating taxes owed for each of these transactions varies depending on which transaction and the complexity of the tax rules for the items sold.

Rental Agreements

Rental Agreements have the simplest tax structure of the transactions in DealerTeam. There are two fields on the Location record Tax Local Rate and Local Rental Addition. Tax Local Rate is the combined sales tax rate for the dealership Location including state, county, and local. This field is also used in the Service Repair Order so any special rental taxes shouldn't get included in this value. The combined rate of any special rental taxes should get entered in the Tax Local Rental Addition field. In addition, on the Rental Agreement if the Tax Exempt field is checked then no taxes will get assessed.

Service Repair Orders & Parts Invoices

Service Repair Orders and Parts Invoices derive tax rates from fields on the Location for the most part. Similar to the Rental Agreement the combined sales tax rate for the dealership Location is stored in the Tax Local Rate field. Due to the complexity of Service Repair Order transactions they have additional tax configuration options available.  

Tax Labor and Tax Parts, if checked, will apply the Tax Local Rate to labor, parts, and sublet charges. Additionally, the Tax Misc. Charges field controls the taxability of Misc. Charge Codes.

Value Action
All All Misc. Charge Codes will get taxed at the Tax Local Rate
None None of the Misc. Charge Codes will get taxed
Respect Misc. Charge Code Record Will charge the tax rate listed on the Misc. Charge Code record

Deals

As the most complex transaction in DealerTeam the Deal has the most flexible set of tax features. Deals can get taxed at the rates for the dealership Location or the Buyer. If the Tax Delivery Address field is checked on the Location record the Tax Zone and its corresponding tax rate gets assigned using the Buyer address instead of the Location address. 

For complex tax scenarios Inventory Vehicles, Parts Kits, Parts, and Misc. Charge Codes can get taxed at special rates based upon the Product Tax Code field. By assigning a product tax code on sale items taxes will calculate based upon the rate in a corresponding Misc Tax Code on the Location. Checking Is Chassis on the Misc Tax Code will apply the tax to the Chassis Price while checking Is Conversion will apply the tax to the Conversion Price.

By unchecking Tax Chassis field on the Vehicle tab of the Deal no taxes will get charged for the Chassis Price and will override the Standard Tax rate set by the Tax Zone. Similarly, by unchecking Tax Conversion the Misc Tax Code on the conversion Parts Kit will get overridden and no tax will get charged on the Chassis Price. Each After Market item on the Equipment tab of the Deal Screen also has a Tax checkbox. If unchecked the particular item will have no tax assessed.

Special taxes can also get manually created on the Purchase tab of the Deal screen. 

Related Tax Objects

The objects listed below represent the constellation used to calculate or store taxes. All objects are custom objects within the DealerTeam package except the Product object which is a Salesforce standard object. Each object listing includes the label and the API name and are presented in alphabetical order.

Deal Tax  (dealer__Deal_Tax__c)

Deal Tax records are used to add tax to a Deal. When a Tax Zone is selected a corresponding Deal Tax record is created that stores the total taxes from the recap screen. 

Deal Tax can also get added to a deal manually either free hand or using templates on the Purchase tab of the Deal screen. By clicking the Add Tax button a new row will appear and the Tax field can get set manually or by choosing a value from the templates in the picklist. Enter either a Flat Tax amount or a Tax Percentage. To create a template that will show up in the picklist click New on the Deal Tax tab and select the Template record type.

helpNote_icon.gif Flat Tax will override Tax Percentage if both are completed on a Deal Tax entry.

Location (dealer__Dealer_Location__c)

This object represents the physical location of each roof top in your organization.

The Location stores the tax rate for Service Repair Orders and Rental Agreements. It also works in concert with the Product Tax Code and Misc Tax Code to apply complex tax scenarios.

Misc Tax Codes (dealer__Misc_Tax_Codes__c)

Misc Tax Codes store a special tax rate that matches both the Product Tax Code and Location. When a sale item related to the Product Tax Code gets sold at a Location the Misc Tax Code corresponding to those records is used to determine the tax rate. 

Field Description
Name (String) the name of this code
Location (Lookup) the dealership Location record
Product (Lookup) the Product Tax Code on the sale item
Rate (percentage) the special tax rate to get applied
Taxable (checkbox) if unchecked no tax will apply for this Product Tax Code at this Location
 

Product (Product2)

The Standard product object acts as classifications of items sold in DealerTeam. These classification will get taxed in the same manner for each location. For example durable medical equipment might be a Product Tax Code for a Parts Master or Parts Kit. Items with the durable medical equipment Product Tax Code will all get taxed at the same rate even if the actual parts are not the same. If hand controls and occupied lifts are both considered durable medical equipment in all dealership locations they would get the same Product Tax Code. The tax rate charged for each Product Tax Code depends on the location and is defined by the Misc Tax Code.

The label name looking up the Product changes depending on the object that references it in the following manner:

Field Label Objects
Product Tax Code Parts Master, Parts Kit, Vehicle Inventory
Product Misc Tax Code

Tax Zone (dealer__Tax_Zones__c)

Tax Zones hold the default tax rate for the address being taxed. If no Misc Tax Code is included on the sale item the rate stored in the Tax Zone is used to calculate taxes. Each After Market item with a Misc Tax Code has taxes calculated individually on the Deal. Each After Market item that references a Misc Tax Code uses the rate stored in the Misc Tax Code, referred to as the “Non-Standard Rate, to determine the Sales Tax for the specific After Market item.

This object stores a reference to a geographical location and the relevant tax rate that applies to the geographic location.

Our system determines the tax zone based on Location of a Deal (either the buyer's address or the location address).

Avalara Tax offers free tax rate downloads at the zip code level here: http://www.taxrates.com/download-tax-tables/ and many states also offer tax tables available for download.

Taxable Objects

After Market Item (dealer__After_Market__c)

When building a Deal an After Market item is created when adding non-standard additional equipment to the deal in the form of Parts Kits, Parts, Sublets, Labor and Misc. Charge Codes. They inherit the pricing, description and tax information from the original object chosen and are then used as to normalize these differing items on the Deal. 

Misc. Charge Codes (dealer__MiscChargeCode__c)

Misc. Charge Codes allow for the addition of charges that do not easily fit into another category. Common Misc. Charge Codes are shop supplies or shipping charges. Misc. Charge Codes may get added directly to the deal or as a Parts Kit Item.

Because Misc. Charge Codes are defined by location the tax is usually defined directly on the record itself. When using Misc. Charge Codes on a Parts Kit Item special taxes get defined on the Parts Kit using Product Tax Code field.

Parts Master (dealer__Parts_Master__c)

The Parts Master defines a part as if in a catalog. Parts Masters are added to a Deal directly or as a Parts Kit Item. In either case the Product Tax Code on the Parts Master will get used to define the tax rate.

Parts Kit (dealer__Parts_Kit__c) and Part Kit Items (dealer__Parts_Kit_Item__c)

In some cases the Org may include bundles of parts and pre selected labor amounts. These pre-set groups of parts are called Parts Kits and the sub-parts added to a Parts Kit are called Parts Kit Items.

A Parts Kit that does not contain any Parts Kit Items  may have a Product Tax Code set, and the kit will be added as an individual After Marker Item. When adding Parts Kits with Parts Kit Items to a Deal the Parts Kit Items and Labor amounts are added as individual After Market Items. When adding Parts Kit and Part Kit Items to a Deal the generated After Market Item will inherit the tax rules from the object that created it.

Rental Agreement (dealer__Rental_Agreement__c)

Rental Agreements capture transaction information for renting a vehicle. The Estimated Tax field is calculated based upon the Tax Local Rate and Tax Local Rental Addition on the Location record. If the Tax Exempt box is checked then no taxes will get assessed.