Tax Limitations/Rules in Customer Focus Order Processing - USA / Canada

For US: Tax rates within Ultimate are determined using the CCH Tax Rate Feed. This is a service which provides direct updates to the tax rates in the system in real-time, so provided you define the correct location information, these rates will remain accurate.

For Canada: Tax rates are tracked by the Canada Revenue Agency (CRA) and is comprised of a 5% Goods & Service Tax (GST) and a provincially-defined Harmonised Sales Tax (HST). You can find the table breaking down tax rate changes by state here

Tax within order processing is calculated based on State, County and City. With this in mind, there are a couple of things you should do to ensure that tax rates are fed through the system accurately.


Firstly, you must select the states you are applicable for tax for in the company record.

This can be done by navigating to the ‘Company’ area of the system. The button for this can be found in the bottom left of the home screen, as shown below:

Once in the company area, Click on the ‘Company Details’ tab

Scrolling to the bottom of the Company tab, you will see a drop-down list marked ‘states’. This is where you select which states you are applicable for tax in. There is no limitation to how many you can select, so check all relevant options.

Once this is completed, when you ship to a customer in one of the states you selected the delivery address and zip code will calculate the sales tax applicable.

As well as defining locations where tax rates apply, you can elect to make a customer tax exempt should there be a need for it. To do this, first navigate to the customer record from your home screen. Once there, navigate to the ‘payment info’ tab. One of the options you will see is labelled ‘sales tax’. This drop-down has a multitude of options, towards the bottom of which is the ‘tax exempt’ option, as shown below:

Note: As you are altering the customer record itself, the customer will remain tax exempt until you go back in and change the tax figure again.

There is also the option to set your own tax rates within the system. In order to do this we must first return to the ‘settings’ area. Once there, hover over the ‘system’ tab to display a list of options. Select ‘sales tax’:

Note: you must be logged in as an administrator to see these options.

Once there, you can define a new tax rate as necessary, with splits for city, county and state. Once done, click insert to add this rate to the system. Once added, you can define whether or not a rate is currently active using the checkbox to the right of each rate.

Note: Once a new tax rate has been set, you must then apply this to a customer record for it to take effect. You do this in the same way we defined the ‘tax exempt’ rate for a customer earlier. Your newest tax rate should appear towards the top of the drop-down list.

Finally, there is also the option to control tax on an individual order, if you wish. To do this, first open up the sales order in question. Towards the right of the ‘build a sales order’ screen you should see a box with various options. On the ‘general’ tab of these options will be a sales tax dropdown just like the one on customer records. You can select your custom tax rate from here, as shown below: