System and method for processing tax codes by company group

• US 8,589,275 B2
• Filed: 11/06/2007
• Issued: 11/19/2013
• Est. Priority Date: 03/23/2001
• Status: Active Grant

• Current Assignee: eBay Inc.
• Original Assignee: eBay Inc.
• Inventors: Cirulli, Susan Bumgardner, Evans, Robert Martin
• Primary Examiner(s): Apple, Kristen
• Application Number:
  US11/983,111
• Publication Number:
  US 20080071653A1
• Time in Patent Office: 2,205 Days
• Field of Search: 705/36.T, 705/36.R
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

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.

Claims

1. A method for assigning taxability codes to purchases and processing tax invoices, said method comprising:

determining, for a line item pertaining to purchase of a commodity or service for a user identified in a user profile to a first company group of a plurality of company groups, a first tax location and a first tax code of a plurality of tax codes, said determining the first tax location and the first tax code comprising using a process specific to the first company group that differs from another process that must be used if the first user were identified to a different company group of the plurality of company groups, each tax code denoting the line item as being taxable, being non-taxable, or having undetermined taxability;

a computer generating a second tax code of the plurality of tax codes from the first tax code;

ascertaining a tax jurisdiction from the tax location;

after said generating the second tax code and said ascertaining the tax jurisdiction, said computer creating a requisition table comprising the second tax code, the tax location, and the tax jurisdiction;

after said creating the requisition table, ascertaining for the line item a tax rate based on the second tax code and the tax location;

after said ascertaining the tax rate, said computer generating a purchase order, said generating the purchase order comprising inserting the ascertained tax rate into the purchase order and transferring both the second tax code and the tax jurisdiction from the requisition table to the purchase order;

transmitting the purchase order to a supplier of the line item;

in response to said transmitting the purchase order to the supplier, receiving from the supplier an invoice specifying a payment due for the purchase order; and

responding to the invoice by paying to the supplier a portion of the payment due or not paying to the supplier any portion of the payment due, said responding being in dependence on tax parameters comprising the second tax code and a tax indication of whether or not the payment due specified by the invoice includes a tax due to the tax jurisdiction for the line item.

2. The method of claim 1,

wherein the used process is a first process, a second process, or a third process;

wherein said using the first process comprises;

said user selecting the first tax code from a list of tax codes and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the second process comprises;

determining the first tax code as being specific to a general ledger account for companies in the first company group and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the third process comprises;

determining the first tax code as being specific to a general ledger account for the commodity or service and determining the first user location by using a destination location for the commodity or service.

3. The method of claim 2,

wherein the method further comprises ascertaining which tax indicators of multiple tax indicators the tax parameters comprise;

wherein if the used process is the first process then the multiple tax indicators consist of first tax indicators, second tax indicators, third tax indicators, and fourth tax indicators;

wherein if the used process is the second process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, fifth tax indicators, and sixth tax indicators;

wherein if the used process is the third process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, the fifth tax indicators, the sixth tax indicators, seventh tax indicators, eighth tax indicators, ninth tax indicators, and tenth tax indicators;

wherein the first tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the second tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the third tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the fourth tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the fifth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

X%;

wherein the sixth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

Y%;

wherein the seventh tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

>

X%;

wherein the eighth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%˜

>

X%;

wherein the ninth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%≳

Y%;

wherein the tenth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

<

Y%.

4. The method of claim 3,

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the first tax indicators, the second tax indicators, or the third tax indicators then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the fourth tax indicators then said responding to the invoice comprises paying to the supplier the payment due less the tax included in the payment due specified by the invoice;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the fifth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the sixth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the seventh tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the eighth tax indicators or the ninth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the tenth tax indicators, then said responding to the invoice comprises not paying to the supplier any portion of the payment due and the method further comprises returning the invoice to the supplier.

5. The method of claim 4, wherein the used process is the first process.

6. The method of claim 4, wherein the used process is the second process.

7. The method of claim 4, wherein the used process is the third process.

8. The method of claim 2, wherein the used process is the second process, and wherein the method further comprises:

before said generating the second tax code, determining that the first tax code denotes the line item as having undetermined taxability; and

responsive to said determining that the first tax code denotes the line item as having undetermined taxability, a tax department transforming the first tax code to another first tax code denoting the line item as being taxable or non-taxable.

9. The method of claim 2,

wherein the used process is the first process or the second process,

wherein if the used process is the first process then said using the first process comprises determining the first user location by using the location code comprised by the user profile, and

wherein if the used process is the second process then said using the second process comprises determining the first user location by using the location code comprised by the user profile.

10. The method of claim 2,

wherein the used process is the first process or the second process,

wherein if the used process is the first process then said using the first process comprises the user selecting the tax location from the list of tax locations, and

wherein if the used process is the second process then said using the second process comprises the user selecting the tax location from the list of tax locations.

11. A computer program product, comprising:

a physically tangible computer readable storage medium storing a computer readable program code, said program code configured to be executed by a computer to perform a method for assigning taxability codes to purchases and processing tax invoices, said method comprising;

determining, for a line item pertaining to purchase of a commodity or service for a user identified in a user profile to a first company group of a plurality of company groups, a first tax location and a first tax code of a plurality of tax codes, said determining the first tax location and the first tax code comprising using a process specific to the first company group that differs from another process that must be used if the first user were identified to a different company group of the plurality of company groups, each tax code denoting the line item as being taxable, being non-taxable, or having undetermined taxability;

generating a second tax code of the plurality of tax codes from the first tax code;

ascertaining a tax jurisdiction from the tax location;

after said generating the second tax code and said ascertaining the tax jurisdiction, creating a requisition table comprising the second tax code, the tax location, and the tax jurisdiction;

after said creating the requisition table, ascertaining for the line item a tax rate based on the second tax code and the tax location;

after said ascertaining the tax rate, generating a purchase order, said generating the purchase order comprising inserting the ascertained tax rate into the purchase order and transferring both the second tax code and the tax jurisdiction from the requisition table to the purchase order;

transmitting the purchase order to a supplier of the line item;

in response to said transmitting the purchase order to the supplier, receiving from the supplier an invoice specifying a payment due for the purchase order; and

responding to the invoice by paying to the supplier a portion of the payment due or not paying to the supplier any portion of the payment due, said responding being in dependence on tax parameters comprising the second tax code and a tax indication of whether or not the payment due specified by the invoice includes a tax due to the tax jurisdiction for the line item.

12. The computer program product of claim 11,

wherein the used process is a first process, a second process, or a third process;

wherein said using the first process comprises;

said user selecting the first tax code from a list of tax codes and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the second process comprises;

determining the first tax code as being specific to a general ledger account for companies in the first company group and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the third process comprises;

determining the first tax code as being specific to a general ledger account for the commodity or service and determining the first user location by using a destination location for the commodity or service.

13. The computer program product of claim 12,

wherein the method further comprises ascertaining which tax indicators of multiple tax indicators the tax parameters comprise;

wherein if the used process is the first process then the multiple tax indicators consist of first tax indicators, second tax indicators, third tax indicators, and fourth tax indicators;

wherein if the used process is the second process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, fifth tax indicators, and sixth tax indicators;

wherein if the used process is the third process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, the fifth tax indicators, the sixth tax indicators, seventh tax indicators, eighth tax indicators, ninth tax indicators, and tenth tax indicators;

wherein the first tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the second tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the third tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the fourth tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the fifth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

X%;

wherein the sixth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

Y%;

wherein the seventh tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

>

X%;

wherein the eighth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%˜

>

X%;

wherein the ninth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%≳

Y%;

wherein the tenth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

<

Y%.

14. The computer program product of claim 13,

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the first tax indicators, the second tax indicators, or the third tax indicators then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the fourth tax indicators then said responding to the invoice comprises paying to the supplier the payment due less the tax included in the payment due specified by the invoice;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the fifth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the sixth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the seventh tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the eighth tax indicators or the ninth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the tenth tax indicators, then said responding to the invoice comprises not paying to the supplier any portion of the payment due and the method further comprises returning the invoice to the supplier.

15. The computer program product of claim 14, wherein the used process is the first process.

16. The computer program product of claim 14, wherein the used process is the second process.

17. The computer program product of claim 14, wherein the used process is the third process.

18. A system, comprising:

a computer; and

a physically tangible computer readable storage medium storing a computer readable program code, said computer configured to execute the program code to perform a method for assigning taxability codes to purchases and processing tax invoices, said method comprising;

determining, for a line item pertaining to purchase of a commodity or service for a user identified in a user profile to a first company group of a plurality of company groups, a first tax location and a first tax code of a plurality of tax codes, said determining the first tax location and the first tax code comprising using a process specific to the first company group that differs from another process that must be used if the first user were identified to a different company group of the plurality of company groups, each tax code denoting the line item as being taxable, being non-taxable, or having undetermined taxability;

generating a second tax code of the plurality of tax codes from the first tax code;

ascertaining a tax jurisdiction from the tax location;

after said generating the second tax code and said ascertaining the tax jurisdiction, creating a requisition table comprising the second tax code, the tax location, and the tax jurisdiction;

after said creating the requisition table, ascertaining for the line item a tax rate based on the second tax code and the tax location;

after said ascertaining the tax rate, generating a purchase order, said generating the purchase order comprising inserting the ascertained tax rate into the purchase order and transferring both the second tax code and the tax jurisdiction from the requisition table to the purchase order;

transmitting the purchase order to a supplier of the line item;

in response to said transmitting the purchase order to the supplier, receiving from the supplier an invoice specifying a payment due for the purchase order; and

responding to the invoice by paying to the supplier a portion of the payment due or not paying to the supplier any portion of the payment due, said responding being in dependence on tax parameters comprising the second tax code and a tax indication of whether or not the payment due specified by the invoice includes a tax due to the tax jurisdiction for the line item.

19. The system of claim 18,

wherein the used process is a first process, a second process, or a third process;

wherein said using the first process comprises;

said user selecting the first tax code from a list of tax codes and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the second process comprises;

determining the first tax code as being specific to a general ledger account for companies in the first company group and determining the first user location either by using a location code comprised by the user profile or by the user selecting the tax location from a list of tax locations;

wherein said using the third process comprises;

determining the first tax code as being specific to a general ledger account for the commodity or service and determining the first user location by using a destination location for the commodity or service.

20. The system of claim 19,

wherein the method further comprises ascertaining which tax indicators of multiple tax indicators the tax parameters comprise;

wherein if the used process is the first process then the multiple tax indicators consist of first tax indicators, second tax indicators, third tax indicators, and fourth tax indicators;

wherein if the used process is the second process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, fifth tax indicators, and sixth tax indicators;

wherein if the used process is the third process then the multiple tax indicators consist of the first tax indicators, the second tax indicators, the third tax indicators, the fourth tax indicators, the fifth tax indicators, the sixth tax indicators, seventh tax indicators, eighth tax indicators, ninth tax indicators, and tenth tax indicators;

wherein the first tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the second tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the third tax indicators comprise the second tax code denoting the line item taxable and the tax indication of the payment due specified by the invoice not including the tax;

wherein the fourth tax indicators comprise the second tax code denoting the line item not taxable and the tax indication of the payment due specified by the invoice including the tax;

wherein the fifth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

X%;

wherein the sixth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

Y%;

wherein the seventh tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%>

>

X%;

wherein the eighth tax indicators comprise the second tax code denoting the line item taxable at X% and the tax due indication of the payment due specified by the invoice including the tax at Y% such that Y%˜

>

X%;

wherein the ninth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%≳

Y%;

wherein the tenth tax indicators comprise the second tax code denoting the line item taxable at Y% and the tax due indication of the payment due specified by the invoice including the tax at X% such that X%<

<

Y%.

21. The system of claim 20,

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the first tax indicators, the second tax indicators, or the third tax indicators then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the first process, the second process, or the third process and if said ascertaining ascertains that the tax parameters comprise the fourth tax indicators then said responding to the invoice comprises paying to the supplier the payment due less the tax included in the payment due specified by the invoice;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the fifth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the second process and if said ascertaining ascertains that the tax parameters comprise the sixth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the seventh tax indicators, then said responding to the invoice comprises paying to the supplier the payment due less a difference between the tax at Y% and the tax at X%;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the eighth tax indicators or the ninth tax indicators, then said responding to the invoice comprises paying to the supplier the payment due;

wherein if the used process is the third process and if said ascertaining ascertains that the tax parameters comprise the tenth tax indicators, then said responding to the invoice comprises not paying to the supplier any portion of the payment due and the method further comprises returning the invoice to the supplier.

22. The system of claim 19, wherein the used process is the first process.

23. The system of claim 19, wherein the used process is the second process.

24. The system of claim 19, wherein the used process is the third process.