How are taxes calculated in CP 7.5?

How are taxes calculated in CP 7.5?

There are two types of tax codes that can be defined in CounterPoint Version 7.5 – Item tax codes and Customer tax codes. These determine the tax rate at either the item or document level.

Customer tax codes can be defined in "Setup/Customers/Tax Codes" and can be applied to the store, to the customer record, or the customer’s ship-to address.

Item tax codes can either be defined as a tax or a surtax in "Setup/Inventory/Tax Codes" and assigned to the item in Inventory/Items.

Item tax codes can be defined as a "Surtax" type, where the calculated tax is ADDED to the customers base tax rate; or it can be defined as ‘Tax’ type, where the rate  will REPLACE the calculated rate from other tax codes, not add to them.

The tax calculation hierarchy is as follows, and is listed in descending order of priority:

  • Item Tax Codes

  • Customer Ship-To Tax Codes

  • Customer Tax Code

  • Store Default Tax Code  (this is used be default if none of the above is specified).

If you are unclear on the ramifications of making additions or changes to your tax configuration, please contact the CCS Retail Systems Support Department.

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