Tax Exclusion

Some states allow delivery cost to be exempted from subscriber taxing (see Trans Exclusion for more information). However, the state may not allow the full delivery cost to be exempted if the cost of delivery exceeds the cost to the subscriber. For example, if a subscriber on a promo rate pays 10.00 for 6 weeks, and the carrier is paid 11.00 for delivery during that same time period, the entire 11.00 delivery cost may not be exempted. Only the amount the subscriber paid (10.00 in this case) may be exempted.

The Tax Exclusion report lists subscribers whose subscription cost is below the delivery cost for a given date range. It also creates GL entries to debit Subscriber Revenue and credit the Earned Tax account for the difference between the delivery cost and the subscriber cost. In the example above, 11.00 would have been exempted when Trans Exclusion was run; Tax Exclusion will reverse out 11.00 - 10.00, or 1.00 of that delivery cost.

Only subscribers with tax authorities flagged for transportation exclusion (the Excl Trans Cost field in Tax Authority Publication setup—see Tax Authority Publication in the Setup Manual) will be included in the report.

Note: The Tax Exclusion Report is part of the Tran Cost Exclusion add-on feature that requires a license fee. Contact the Naviga Support Center if you wish to purchase this add-on.

To run the report:

• Select Tax Exclusion from the Taxing menu to display the Tax Exclusion Report window.

  
• Click Add and complete the following fields.

  Field	Type	What to enter
  PRODUCT	setup	Enter the product for which to calculate taxing exclusions, or enter “*” to multi-select products.
  START DATE, END DATE	date	Enter a date range for the report. The report will determine whether subscribers qualify for tax exclusion based on this date range.
  SORT ORDER	predefined	Indicate whether the report should sort by subscriber ID within each area, region, zone, or district. Or, enter all if the report should sort by subscriber ID only.
  UPDATE GL	yes/no	Indicate whether GL entries should be made as part of the report process. See GL entries for taxing. If this box is checked, the Show All Subscribers box is disabled.
  SHOW ALL SUBSCRIBERS	yes/no	When unchecked, only subscribers that have a tax exclusion qualification will be included in the report. When checked, all subscribers will be included. If this box is checked, the Update GL box is disabled.

• Click OK and then Continue to create the report. GL entries will also be made if Update GL was set to “y”—see GL entries for taxing for more information.

Example—Tax Exclusion Report