System and method for processing tax codes by company group
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Abstract
A system and method for assigning taxability codes to purchases, and processing tax invoices, by company groups. A user, identified to one of a group of companies, inputs a requisition. Tax code and tax location are identified in a front end process applicable to the object of the requisition and converted into a converted tax code and tax jurisdiction and fed to a back end processor. Responsive to converted tax code and the tax jurisdiction for the corresponding company group, the back end prepares a purchase order which is transmitted to a supplier. Responsive to an invoice from the supplier and company group and tax code indicia from the purchase order, the back end processes and selectively pays, short pays, or rejects the invoice.
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Citations
24 Claims
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1-12. -12. (canceled)
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13. A method for assigning taxability codes to purchases and processing tax invoices, comprising the steps of:
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receiving from a user, identified by company indicia to one of a plurality of company groups including at least a first company group and a second company group a purchase requisition selectively for at least one of a service and commodity line-item object;
responsive to said indicia and said line-item object, determining a tax code and tax location based on defined business rules with said tax code selectively representing a line item as being one of a plurality of taxable, non-taxable, and undetermined tax codes and said tax location code selectively representing a default company location code and a ship-to location code for said line item;
converting said tax code and tax location to a tax jurisdiction code with associated tax rate;
preparing a purchase order identified to said one of said plurality of company groups for transmittal to a supplier of said object;
processing said purchase requisition for a user identified by company code to said first company group according to a first scenario in which a user creating a requisition selects taxability by selecting said tax code and said tax location code;
processing said purchase requisitions for a user identified by company code to said second company group according to a second scenario in which taxability is determined based on commodity purchased and purchasing ship-to location;
processing a first invoice submitted pursuant to said first scenario by paying said first invoice as presented when said purchase requisition contains a non-taxable code and said first invoice invoices no tax and when said purchase requisition contains a taxable code and said first invoice invoices tax;
by short paying said first invoice when said purchase requisition contains a non-taxable code and said first invoice invoices tax; and
by paying said first invoice as presented and crediting a tax account for tax when said purchase requisition contains a taxable code and said first invoice invoices no tax; and
processing a second invoice submitted pursuant to said second scenario by paying said second invoice as presented when said purchase requisition contains a non-taxable code and said second invoice invoices no tax, and when said purchase requisition contains a taxable code and said second invoice invoices tax;
by short paying said second invoice when said purchase requisition contains a non-taxable code and said second invoice invoices tax and when said purchase requisition contains a taxable code at a first tax rate and said second invoice invoices tax a tax rate more than said first tax rate;
by paying said second invoice as presented when said purchase requisition contains a taxable code at a second tax rate and said second invoice invoices tax at a tax rate within tolerance of said second tax rate;
by paying said second invoice as presented and crediting a tax account when said purchase requisition contains a taxable code and said second invoice invoices no tax. - View Dependent Claims (14, 15, 16, 17)
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18. A system for assigning taxability codes to line-item purchases and processing tax invoices, comprising:
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a user requisition interface for receiving from a user, identified by company indicia to one of a plurality of company groups including at least a first company group and a second company group a purchase requisition for a service or commodity line-item object;
a processor;
said processor being responsive to said indicia and said line-item object for determining a tax code and tax location code, and for converting said tax code into a converted tax code and said tax location code into a tax jurisdiction for each line-item object of said tax invoice, said tax code selectively representing a line item as being one of a plurality of taxable, non-taxable, and undetermined tax codes and said tax location code selectively representing a company location code and a ship-to location code for said line item;
said processor processing said purchase requisition for a user identified by company code to said first company group according to a first scenario in which a user creating a requisition selects taxability by selecting said tax code and said tax location code;
said processor processing said purchase requisitions for a user identified by company code to said second company group according to a second scenario in which taxability is determined based on commodity purchased and purchasing ship-to location;
said processor being responsive to said converted tax code, said tax jurisdiction, said preparing and said company indicia for preparing a purchase order identified to said one of said plurality of company groups for transmittal to a supplier of said object. - View Dependent Claims (19, 20, 21, 22)
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23. A program storage device readable by a machine, tangibly embodying a program of instructions executable by a machine to perform method steps for assigning taxability codes to purchases and processing tax invoices, said method steps comprising:
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receiving from a user, identified by company indicia to one of a plurality of company groups including at least a first company group and a second company group, a purchase requisition selectively for at least one of a service and commodity line-item object;
responsive to said indicia and said line-item object, determining a tax code and tax location code, said tax code selectively representing a line item as being one of a plurality of taxable, non-taxable, and undetermined tax codes and said tax location code selectively representing a company location code and a ship-to location code for said line item;
converting said tax code into a converted tax code and said tax location into a tax jurisdiction;
preparing a purchase order identified to said one of said plurality of company groups for transmittal to a supplier of said line-item object;
processing said purchase requisition for a user identified by company code to said first company group according to a first scenario in which a user creating a requisition selects taxability by selecting said tax code and said tax location code;
processing said purchase requisitions for a user identified by company code to said second company group according to a second scenario in which taxability is determined based on commodity purchased and purchasing ship-to location;
processing a first invoice submitted pursuant to said first scenario by paying said first invoice as presented when said purchase requisition contains a non-taxable code and said first invoice invoices no tax and when said purchase requisition contains a taxable code and said first invoice invoices tax;
by short paying said first invoice when said purchase requisition contains a non-taxable code and said first invoice invoices tax; and
by paying said first invoice as presented and crediting a tax account for tax when said purchase requisition contains a taxable code and said first invoice invoices no tax; and
processing a second invoice submitted pursuant to said second scenario by paying said second invoice as presented when said purchase requisition contains a non-taxable code and said second invoice invoices no tax, and when said purchase requisition contains a taxable code and said second invoice invoices tax;
by short paying said second invoice when said purchase requisition contains a non-taxable code and said second invoice invoices tax and when said purchase requisition contains a taxable code at a first tax rate and said second invoice invoices tax a tax rate more than said first tax rate;
by paying said second invoice as presented when said purchase requisition contains a taxable code at a second tax rate and said second invoice invoices tax at a tax rate within tolerance of said second tax rate;
by paying said second invoice as presented and crediting a tax account when said purchase requisition contains a taxable code and said second invoice invoices no tax.
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24. A computer program product for assigning taxability codes to purchases and processing tax invoices comprising:
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a computer readable medium;
first program instructions for receiving from a user, identified by company indicia to one of a plurality of company groups including at least a first company group and a second company group a purchase requisition including at least one line item for a service or commodity line-item object;
second program instructions, responsive to said indicia and said object, for determining a tax code and tax location code for each said line item object said tax code selectively representing a line item as being one of a plurality of taxable, non-taxable, and undetermined tax codes and said tax location code selectively representing a company location code and a ship-to location code for said line item;
third program instructions for converting said tax code into a converted tax code and said tax location code into a tax jurisdiction code;
fourth program instructions for preparing a purchase order identified to said one of said plurality of company groups for transmittal to a supplier of said object;
fifth program instructions for processing said purchase requisition for a user identified by company code to said first company group according to a first scenario in which a user creating a requisition selects taxability by selecting said tax code and said tax location code;
sixth program instructions for processing said purchase requisitions for a user identified by company code to said second company group according to a second scenario in which taxability is determined based on commodity purchased and purchasing ship-to location; and
whereinsaid first, second, third, fourth, fifth, and sixth, program instructions are recorded on said computer readable medium.
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Specification