Skip to main content
Avalara Help Center

AFC Rate and Logic Modifier user manual

AFC RLM Overview 

The AvaTax for Communications (AFC) Rate and Logic Modifier (RLM) is a component of the AFC Manager that allows you to view the tax rate and logic information for any jurisdiction. This tool will also allow you to create override files that may be used within the AFC system. The override files produced by the AFC RLM may be used to modify tax rates for a specific jurisdiction, alter the tax logic for transaction/services, and add or remove taxes from transaction/services.

Override Files

Override files are comma-delimited text files that may contain rate and/or logic override information. These files may be used within the AFC system in order to apply the overrides to the tax engine used by AFC. The overrides specified in the file will be reflected on tax calculation results.

You may also use the override files created by the RLM with the AFC Viewer and the AFC Sales and Use Viewer.

Override Files

Using Override Files with AFC

In order to use an override file with AFC, you must specify the location of the override file when initializing an AFC session. You may specify which override file to use by adding the appropriate entry in the filelocs.txt file.

When initializing an AFC session, AFC will look for a filelocs.txt file in the working directory in order to determine the location of the AFC database files, output files, and the override file that should be used. You may use the Filelocs Wizard tool of the AFC Manager to easily create or modify a filelocs.txt file.

If you are using the AFC API, you may specify the location of the AFC data files through a file path structure instead. If a file path structure is used during the initialization of an AFC session, AFC will use the paths specified in this structure instead of the paths specified in the filelocs.txt file. However, if any paths are missing in the file path structure, AFC will attempt to read them from the filelocs.txt file.

EZtax.cfg Options

The EZtax Configuration file specifies settings that may be used in order to modify the operation of the AFC engine. These options are specified in a file named EZtax.cfg. AFC will search for this file in the working directory when initializing an AFC session and apply the options specified in this file.

In order to use the override files created by this tool with AFC, you must specify the format of the override file in the EZtax.cfg file being used as follows:

overrideformat=new

This will indicate to AFC that the override file being used is in the format created by the AFC RLM. Otherwise, AFC will not be able to recognize the format of the file and fail to initialize an AFC session.

Performance

Using an override file may affect the performance of the AFC system while initializing a session. The effect that an override file may have on performance will vary from a small fraction of a second up to a couple of minutes. The effect on performance will depend on the following factors:

  1. The number of overrides specified in the file. The greater the number of overrides in the file, the longer it will take for AFC to initialize an AFC session.
  2. The type of the override being inserted. Logic overrides take a slightly longer amount of time to process than rate overrides. Especially if you are adding taxes to a transaction/service through an override. This type of override is the most time consuming.
  3. The scope of the override. If the override is being applied to all locations in a county, or all locations in a state, it will take longer to process than if the override was only being applied to a single local jurisdiction.

Please note that using an override file will only affect the performance of AFC while initializing an AFC session. Therefore, once the AFC session has been initialized, AFC will be able to process tax calculations at the usual speed.

The same effect will take place with the AFC Manager if you are using an override file with any of its components.

Creating and Editing Override Files

You may create an override file by following these steps:

  1. Open either the Rate Modifier or the Logic Modifier.
  2. Click the “Select” button in order to specify the location of the override file on your PC.
  3. A file dialog will appear which will allow you to either open an existing override file, or create a new override file.
    • If you are creating a new override file, enter the desired file name and then select Open.
    • If you are modifying an existing override file, select the file and then select Open.

Creating or Selecting an Override File

image

The Rate Modifier and the Logic Modifier will apply the overrides specified in the file. Therefore, the modified tax rate and logic information will be displayed for the jurisdictions, taxes, and transaction/services specified for each override.

Platform

If you wish to use the override file created by this tool in a platform other than Windows (such as Unix, Linux, or others), you must change the format of the file being produced. You may accomplish this by selecting the File menu and selecting the platform for the override file as shown below.

Changing the Override File Format

image

Following this step is necessary since Windows files may not be compatible with other platforms.

Selecting a Jurisdiction

Location Search Dialog

Many of the components of the AFC Manager require you to select a jurisdiction. The Location Search dialog is used throughout the AFC Manager to allow you to search for the location that you wish to select.

Location Search Dialog

image

Location Search

This dialog allows you to search for the location by name. Simply select the location that you are looking for in the top-left portion of the screen. When selecting a country, only the states for that country will be displayed in the state combo box. Similarly, when selecting a state, only the counties and the cities for that state will be displayed in the respective combo boxes.

You may type the name of the city or select one from the list. Once you have made your selection, click on the “Search” button. The “Search Results” grid will then display a list of matching locations based on the information that you entered.

You may also search for a jurisdiction by zip code, FIPS code, PCode, or NPANXX number.

Selecting a Location

You may view additional information for a jurisdiction by clicking on the appropriate row in the grid. The “Jurisdiction Details” panel will display the permanent code assigned to the jurisdiction by Avalara, Inc., as well as the zip code range for that location.

Once you have selected a jurisdiction from the grid, you may click on the “Select” button in order to select that jurisdiction. Optionally, you may also double-click on the appropriate row in the grid.

You can also press the “Cancel” button to close the form without selecting a jurisdiction.

Tax Rate Modifier

The Tax Rate Modifier is the component of the RLM that allows you to view the tax rate information for any jurisdiction, and add rate overrides to an override file.

The steps involved in creating rate overrides involve the following:

  1. Selecting a jurisdiction.
  2. Selecting the tax that you wish to override.
  3. Building the tax rate history and bracket information for the tax.
  4. Specifying the scope of the override.
  5. Saving the override into the file.

These steps are explained in detail in the following sections.

Viewing Tax Rate Information

Selecting a Jurisdiction

The first step is to select a taxing jurisdiction. You may accomplish this by clicking on the “Change” button in order to select a jurisdiction.

Selecting a Jurisdiction

image

The Location Search dialog will be displayed in order to allow you to search for a jurisdiction.

Once you have selected a jurisdiction, the list of taxes for the selected jurisdiction will appear on the screen as shown below.

Jurisdiction Tax List

Jurisdiction Tax List

image

The Tax Type column will display the list of taxes for the selected jurisdiction. The tax type ID assigned to this tax by Avalara, Inc. will be displayed in parenthesis next to the tax.

Tax Rate Information

Sales and use taxes will be displayed on a different tab than other taxes for that jurisdiction. You may switch between these two tabs in order to view the different types of taxes and their corresponding tax rates.

The tax rate history will be displayed for each tax. The Effective Date column indicates the date when the specified rate became effective. If any brackets apply, they will also be displayed within its corresponding history record. The Max Base column will indicate the maximum base for each bracket.

Sales Tax Record

Sales and use tax records contain the fields shown below.

Sales Tax Record

image

The Replace State and Replace County fields are only relevant to local sales taxes. These fields indicate if when the local sales tax is applied to a transaction, the state or county sales tax will not be applied. If a city has a local sales tax that includes the state or county tax into its collection and is exempt from the normal collection of the state or county tax, the Replace State or Replace County fields must be checked (or set to true).

The State Override Tax column specifies a tax rate that will be used to override the state tax. This field allows for a local jurisdiction to specify a tax rate that is different than the rate specified by the state jurisdiction.

Similarly, the County Override Tax column specifies a tax rate that will be used to override the county tax. This field allows for a local jurisdiction to specify a tax rate that is different than the rate specified by the county jurisdiction.

Other Tax Record

The records for other taxes have the following fields:

Other Tax Record

image

When using the AFC API, you may specify level exemptions on the transaction data structure in order to indicate that all taxes at the specified level must be exempted. The Level Exempt flag indicates if the tax allows level exemptions to apply to this tax.

Overridden Column

If you have selected an override file, the RLM will apply the overrides specified in the file and display the modified tax rate information. The Overridden column will indicate if the information being displayed for a specific tax is the result of an override.

Creating Tax Rate Overrides

Prior to creating any overrides, you must first select an override file. You may then select the tax that you wish to override by clicking on the appropriate record in the grid. To create an override for the selected tax, click on the “Override” button, or double click on the selected tax in the grid.

The form shown below will then be displayed.

Tax Rate Override Form

image

Tax Rate History

The grid on the top portion of the form will display the tax rate history and bracket information for the tax that you have selected. As you select a history record in this grid, the information for that history record will be displayed in the “Edit Tax Rate History” panel below to allow you to modify the information for that history record.

You can create a new history record by simply changing the Effective Date. Any modifications made to the historical tax record will be applied as you click on the “Apply” button. By clicking on the “Delete” button, you may remove the entire history record.

The “Repeal” can be used to indicate that the selected tax will not be taxed as of the selected effective date. A history record with a tax rate of 0 and the selected effective data will be created. When using this override with the AFC system, this record will indicate AFC not to apply the tax when performing tax calculations.

Editing Bracket Information

The grid inside the “Edit Tax Rate History” panel allows you to set the tax rate. If the tax has a limit, check the box in the limit column, and enter the maximum base.

To add brackets, click on the “Add Brackets” button to create a new record. There may only be one bracket with no limit, and each bracket must have a different maximum base. If you do not specify a bracket with no limit, the RLM will automatically create one for you with a tax rate of 0. When this override is applied in the AFC system, this record will indicate that no tax is applied for portions of the transaction amount above the maximum base specified by other brackets.

Bracket Example

image

In the example above, the tax override indicates that a tax rate of 0.01125 will be taxed up to $100.00 of the transaction amount. Any portion of the transaction amount above $100.00 will not be taxed.

To delete a bracket, select the row in the grid by clicking on the left-most column in the row (where the black triangle is displayed), and press the Delete key on your keyboard.

Saving Overrides

Remember to click on the “Apply” button as you make changes to the tax rate history and bracket information. The grid on the top portion of the form will display the tax rate information as it will be saved in the override file.

If you have made any mistakes and wish to start over, click on the “Reset” button in order to reset the original tax rate information. The “Cancel” button allows you to close the form without creating an override.

Once you have completed modifying the tax rate information, click on the “Save” button to save the override to the file.

A confirmation dialog will appear displaying the location of the override file, the jurisdiction, and the tax that will be overridden.

Confirm Override Dialog

image

Override Scope

This dialog also allows you to select the scope of the override. You may select to apply the override to all locations in the state, all locations in the county, only the selected location, or choose specific locations.

Generally, the scope of the override should match the tax level. For example, if you are creating an override for a state tax, you may want to select the option to apply the override to all location in the state. Unless you want to apply a different tax rate for a state tax to a specific county, or city only.

In the same way, you may override a local tax and attempt to apply it to all localities in the state or county. Note that the override will only be applied if the tax exists in other local jurisdictions.

The option to apply an override to all location in the country is only available for Federal tax overrides.

The check box on the bottom of the scope options allows you to add the tax to a jurisdiction if it does not already exist. In the example above, we are overriding the Local Sales Tax for Overland park. If we select a State scope and check this option, AFC will add a Local Sales Tax to every locality in Overland Park that did not have a Local Sales Tax before. If this check box is not checked, AFC will only override the Local Sales Tax in every locality in the state that already had a Sales Tax prior to adding this override.

Once you have selected the scope of the override, click on the “Ok” button. If the option to choose specific locations was selected, you will be presented with the Location Search window containing all the jurisdictions for the state of the originally selected location. To select a specific location, click on the checkbox next to the location. If the location is a state or county, all of the lower level jurisdictions of the selected location will remain hidden until you uncheck the checkbox. Once all specific locations have been selected, click on the “Ok” button. The override will be saved immediately to the file.

Specific Location Search Dialog

image

NOTE: When you save an override to the file, that override will be applied to the AFC RLM. Therefore, the Tax Rate Modifier will now display the overridden tax rates in the jurisdiction tax list. Also, if you are using the override file being edited with the AFC Viewer, the AFC Viewer will immediately reflect the changes made to the override file.

Adding Taxes to a Jurisdiction

The AFC RLM allows you to add taxes to a jurisdiction by pressing the “Add Tax” button on the bottom of the Rate Modifier form. Prior to adding a tax to a jurisdiction, you must first select an override file where the override will be saved, and select the jurisdiction where you want to add the tax.

Add Tax Button

image

After pressing the “Add Tax” button, the Rate Override form will be displayed. Two combo boxes will appear on the top of this form in order to allow you to

Select the tax level and the tax type that you want to add to a jurisdiction.

Selecting a Tax to Add to a Jurisdiction

image

Notice that any taxes that already exist in the jurisdiction will not be available in the combo box. For example, if the jurisdiction already has a Local Sales tax, after selecting the Local level in the tax level combo box, the Sales Tax option will not be available in the tax type combo box.

Create Tax Rate Information

After selecting the tax that you wish to add, the next step is to specify the tax rate information for that tax. The process is the same as creating a tax rate override. Select the effective date when this tax will be applied. Click the “Add Bracket” button in order to add a tax rate. If the tax has multiple brackets you may add them at this point and you may also create as many historical tax rate records as necessary.

Saving the Override

Once you have completed entering the rate information, you may click on the “Save” button in order to save the override file. A dialog will be displayed in the screen prompting you to confirm the addition of the override into the file and to select a scope for the override.

The check box on the bottom of the scope options will indicate that this tax will be added to the jurisdiction in it does not already exist. If you select a State or County option, the tax will be added to every jurisdiction within that scope if the tax does not exist in that jurisdiction. If the tax already exists in the jurisdiction, it will be overridden with the information specified in this override.

Confirm Override Dialog

image

The tax should now be displayed in the Rate Modifier. However, since this is a new tax, it will not have any tax logic associated with it. The next step will be to use the Logic Modifier tool to specify which transaction/services are taxes by the newly added tax.

To add logic to the new tax, open the Logic Modifier and select the same override file. Select the jurisdiction to which the tax was added, and then select the tax that you have just added. The process to add a tax to one or more transaction/services is explained in section 5.3.

NOTE: By default, some taxes may already contain tax logic even if the tax did not previously exist in the jurisdiction. When adding a tax to a jurisdiction, verify if the tax already has tax logic associated with it by using the Logic Modifier and make the appropriate modifications to suit your needs.

Tax Logic Modifier

The Tax Logic Modifier is the component of the AFC RLM that allows you to view the tax logic for any jurisdiction and add logic overrides to an override file.

The steps involved in creating logic overrides involve the following:

  1. Selecting a jurisdiction.
  2. Selecting a tax, and the transaction/services that you wish to override.
  3. Building the logic history for the override.
  4. Specifying the scope of the override.
  5. Saving the override into the file.

These steps are explained in detail in the following sections.

Viewing Tax Logic Information

Selecting a Jurisdiction

The first step is to select a taxing jurisdiction. You may accomplish this by clicking on the “Change” button in order to select a jurisdiction.

Selecting a Jurisdiction

image

The Location Search dialog will be displayed in order to allow you to search for a jurisdiction.

Jurisdiction Tax List

Once you have selected a jurisdiction, the list of all taxes that exist in that jurisdiction will be populated into the tax combo box. You may select a tax from the list in order to view the tax logic associated with each tax.

Tax Logic

As you select a tax, the list of transaction/services for the tax will be displayed in the grid. You may filter this list by selecting a transaction type in the transaction combo box. Only transaction/services for that transaction type will be displayed. To view all transaction/services that are taxes by the selected tax, select the “All” option in the combo box.

Transaction/Service List

image

Tax Logic Record

Each transaction/service will display the logic that is used by AFC when performing tax calculations in order to determine the specific rules that apply to the taxation of that transaction/service. If the transaction/services has more than one historical logic record, they will be displayed as well.

Each field in the tax logic record is described below.

Effective Date

 

 

Indicates the date when the specified tax logic became effective.

Jurisdiction Rule

The jurisdiction rule will determine if the transaction/service will be taxed based on the jurisdictions specified for the bill-to, origination and termination. The different types of jurisdiction rules are the following:

  • Tax based on 2 out of 3 Rule. Apply tax where 2 out of 3 jurisdictions are equal.
  • Tax based upon Billing. Apply tax based on the billing location.
  • Tax based upon Origination. Apply tax based on the Origination of the call location.
  • Tax based upon Termination. Apply tax based on the Termination of the call location.
  • Tax if (Bill=Orig). Apply tax only if billing jurisdiction and origination jurisdiction is equal.
  • Tax if (Bill=Orig=Term). Apply tax only if all three jurisdictions are equal.
  • Tax if (Bill=Tax Jurisdiction). Apply tax if billing jurisdiction equals origination or termination jurisdictions.
  • Tax if (Bill=Term). Apply tax only if billing jurisdiction and termination jurisdiction is equal.
  • Tax if (Orig=Tax Jurisdiction). Apply tax if origination jurisdiction equals billing or termination jurisdictions.
  • Tax if (Term=Tax Jurisdiction). Apply tax if termination jurisdiction equals billing or origination jurisdictions.
Calculation Type

The calculation type determines the method that will be used by AFC to calculate the tax amount for the transaction. The following options are available:

  • Rate. AFC will use the rate specified for this tax to calculate the tax amount as a percentage of the transaction amount.
  • Fixed. This calculation type will indicate AFC to use the rate specified for this tax as a fixed amount.
  • Per Access Line. Transaction/services with this calculation type will be taxed based on the number of lines specified for the transaction.
  • Per Minute. Transaction/services with this calculation type will be taxed based on the number of minutes specified for the transaction.
  • Self-Taxing Rate (Cable).
Effect on Sales

The Effect on Sales field indicates the effect that applying this tax on the transaction/service will have on sales taxes.

Surcharge

A surcharge is any item on a customer billing, which is not a tax. Surcharges are not taxes, although some may reference a tax like the E911 tax, which is a surcharge in most cases. Surcharges are fees and assessments that a customer receives in exchange for a service. Many times these are passed on services that are subject to tax.

Retail

Indicates if the tax is applied when the product or service is sold to the consumer of such products and services.

Wholesale

Indicates if the tax is applied when the product or service is being sold to other companies that sell the product or service to consumers.

Business

Indicates if the tax is applied for business customers.

Residential

Indicates if the tax is applied for residential customers.

Senior Citizen

Indicates if the tax is applied for senior citizens.

Industrial

Indicates if the tax is applied for industrial customers.

Regulated

Indicates if the tax is applied if the Telecommunication company and its services are regulated by the regulatory commission in the state of services.

Unregulated

Indicates if the tax is applied if the Telecommunication company and its services are not regulated.

Lifeline

Indicates if the tax is applied for Lifeline participant customers.

Lifeline Only

Indicates that the tax is applied only for Lifeline participant customers.

ILEC

An Incumbent Local exchange Company (ILEC) is engaged in selling services over company owned lines and equipment. This field indicates if the tax applies to ILEC companies.

CLEC

A Competitive Local Exchange Company (CLEC) is engaged in selling services competing with an incumbent provider. This field indicates if the tax applies to CLEC companies.

Primary Long Distance

Primary long distance providers are carriers vending their services with over 50% of the gross business activities in long distance revenue. This field indicates if the tax applies to primary long distance providers.

Primary Local

Primary local service providers are carriers vending their services with over 50% of the gross business activities in local service revenue. This field indicates if the tax applies to primary local service providers.

Franchise

Franchise companies provide services sold pursuant to a franchise agreement between the carrier and jurisdiction. This field indicates if the tax applies to franchise companies.

Non-Franchise

Indicates if the tax applies to non-franchise companies.

Facilities

Indicates if the tax applies to transactions in which the carrier delivering the service has company owned facilities that are used to provide the service.

Non-Facilities

Indicates if the tax applies to transactions in which the carrier does not own the facilities used to provide the service.

Tier at Transaction

When using customer mode in AFC, this field will indicate the tax engine to calculate the tax using graduated tax brackets on a transaction basis instead of a customer invoice basis.

Rate at Final

Rate at final is the application of tax brackets where a total transaction amount is taxes at the rate of the bracket the total falls into.

Billable

If a tax or fee is not billable, this tax is a compliance only item used for filing and should not be passed on to the user as separate line item on the user’s bill. By default, non-billable items are not returned by the AFC API functions, but they are placed into the AFC log. However, you may set the following option in the EZtax.cfg file to allow non-billable items to be returned by the tax calculation APIs in AFC:

returnnonbillable=true

By placing this option in the configuration file, the AFC APIs will return non-billable items in the tax results table. The billable column of the tax table will indicate if the item is a non-billable item. You may use the Configuration File Wizard of the AFC Manager in order to create or modify an AFC configuration to set this option.

Compliance

Indicates if the tax or fee is a compliance item. AFC utilities use this field in order to generate compliance or billing reports. If the tax is not marked a compliant, it will not be included in compliance reports.

Pro-Rated

This field indicates if the tax should allow the transaction to be taxed based on a specified percentage of the transaction charge. Some taxes do not allow to be assessed on a percentage basis.

The AFC system includes a set of API functions that allow you to calculate taxes for pro-rated transactions.

TAM

The transaction amount multiplier (TAM) specifies the percentage of the transaction amount that will be taxes. For example, a value of 0.5 indicates that only 50% of the transaction amount should be taxed.

TAS

The transaction amount subtraction (TAS) specifies a fixed amount that will be subtracted to the transaction amount before the transaction is taxed.

Report Level

Allows a state tax or county tax to be reported to the local level jurisdiction. The following are the report level options:

  • Tax Level. Indicates that the tax will be reported at the jurisdiction for the tax level. For example, state taxes will be reported to the state jurisdiction, county taxes to the county jurisdiction, and local taxes to the local jurisdiction.
  • County. This option allows state taxes to be reported to the county jurisdiction.
  • Local. This option allows state and county taxes to be reported to the local level jurisdiction. This is the most frequently used for sales and use taxes.
Log Zero Tax

This field will indicate the AFC engine to place transactions that do not generate any taxes into the AFC log for verification of revenue sent to AFC. The log can be used later on to report revenue that did not generate taxes.

Prepaid

Indicates if this tax should apply to Prepaid transactions.

Tax by All Other

Indicates if this tax will be taxed by all other taxes.

Tax Taxes

This field works in conjunction with the Tax by All Other field. When the Tax by All Other field is checked, any taxes specified in this list will not include the tax amount of this tax into their taxable measure (i.e. this tax will be taxed by all other taxes except those specified in this list. Otherwise, if the Tax by All Other field is not checked, any taxes in this list will include the amount for this tax in their taxable measure (i.e. this tax will only be taxed by the taxes specified in this list).

Overridden Column

If you have selected an override file in the Logic Modifier, the logic overrides specified in the file will be reflected in the tax logic grid. If the logic for a transaction/service is the product of an override, the overridden column will indicate this.

Creating Logic Overrides

The first step is to select the transaction/services for which you will override the tax logic. Click on the transaction/service in the grid in to select the logic record that you will override.

You can select more than one transaction/service by holding the Ctrl key on your keyboard as you click on the desired transaction/services in the grid. You may also select a range of transaction services by holding the Shift key.

After you have selected the transaction/services from the grid, click on the “Add Override” button. The Logic Override dialog will be displayed on the screen to allow you to modify the tax logic for the selected transaction/services.

Logic Override Dialog

image

Tax Logic History

The grid on the top portion of the form will display the tax logic that will be saved in the override file. You may edit the information in a tax logic history record by selecting the row in the grid.

As you select a logic history record, the information for that history record will be displayed in the “Edit Tax Logic History” panel, where you will be able to make any modifications to the tax logic fields.

To create a new logic history record, simply change the Effective Date and click on the “Update” button. You may delete a history record by pressing the “Delete” button.

The “Repeal” button will create a history record with the specified effective date that will indicate AFC not to apply the tax for the selected transaction/services as of the specified date.

Tax Taxes

The Tax By All Other flag indicates if a tax should be taxed by all other taxes. However, you may also select individual taxes to specify that they must include the tax amount of this tax into their taxable measure.

If the Tax by All Other flag is not checked, any individual taxes that you add to the tax on tax list will tax the amount for the tax being overridden. However, if the Tax by All Other flag is checked, any taxes in the list will not be taxed by those items (i.e. the tax being overridden will be taxed by all other taxes except for the taxes listed in the list).

In the example below, the tax being overridden will be taxed only by the Federal USF.

Adding a Single Tax on Tax Item

image

However, checking the Tax By All Other flag will change the meaning of the taxes in the list. In the example below, the tax being overridden will be taxed by all other taxes, except the Federal USF.

Tax by All Other Taxes Except Items in the List

image

Saving Overrides to the File

Remember to click on the “Update” button as you make any modifications to the tax logic history. The grid on the top portion of the form will display the tax logic information that will be written to the override file. Verify that the logic is setup as desired before proceeding.

If you have made any mistakes and wish to start over, click on the “Reset” button to restore the tax logic information. The “Cancel” button will allow you to close the form without saving any modifications to the override file.

Once you have completed making the desired changes to the tax logic, click on the “Save” button to save the logic override into the selected file. A confirmation dialog will appear on the screen.

Confirm Logic Override Dialog

image

The confirmation dialog will display the location of the override file where this override will be saved. The Location, tax, and transaction/services for the override will also be displayed.

Override Scope

This dialog also allows you to select the scope of the override. You may select to apply the override to all location in the state, all location in the county, only the selected location, or choose specific locations.

Generally, the scope of the override should match the tax level. For example, if you are creating an override for a state tax, you may want to select the option to apply the override to all location in the state. Although, you also have the option to apply the override to all locations in the county, or the selected location only.

In the same way, you may override the logic for a local tax and apply the override to all localities in the state or county. Note that the override will only be applied if the tax exists in other local jurisdictions.

The option to apply an override to all location in the country is only available when creating logic overrides for Federal taxes.

After selecting the scope of the override, click on the “Ok” button. If the option to choose specific locations was selected, you will be presented with the Location Search window containing all the jurisdictions for the state of the originally selected location. To select a specific location, click on the checkbox next to the location. If the location selected is a state or county, all of the lower level jurisdictions of the selected location will remain hidden until you uncheck the checkbox. Once all specific locations have been selected, click on the “Ok” button. The override will be saved immediately to the file.

Specific Location Search Dialog

image

NOTE: When you save an override to the file, that override will be applied to the AFC RLM. Therefore, the Tax Logic Modifier will now display the overridden tax logic in the grid. Also, if you are using the override file being edited with the AFC Viewer, the AFC Viewer will immediately reflect the changes made to the override file.

Adding Taxes to a Transaction/Service

To add a tax to a transaction/service, follow the same steps used to create an override. The only exception is that you do not need to select any transaction/services from the tax logic grid before pressing the “Add Override” button.

In the Logic Override dialog, you may add the transaction/services for which the selected tax will be applied. As you click on the “Add” button a dialog will be displayed to allow you to select the transaction/services that you wish to add. You may hold the Ctrl or Shift keys on your keyboard to select more than one.

Adding a Tax to Transaction/Services

image

Complete the process by building the tax logic history and saving the override to the file as explained in the section for creating logic overrides.

Copying Tax Logic from One Tax to Another

The AFC RLM allows you to copy the tax logic that is used for a specific tax, and apply it to another tax. The process follows the same principles for creating a logic override.

Select the jurisdiction, and the tax that contains the logic that you want to use. Then, select the transaction/services for which you with to copy the tax logic to another tax and click on the “Add Override” button. As the Logic Override dialog shows up, you can change the tax by selecting a different tax from the list.

Copying Tax Logic from One Tax to Another

image

As you complete the process by saving the override to the file, the specified tax logic will be applied for the selected transaction/services.

Shutting Taxes Off

The AFC RLM allows you to shut taxes off for a specific jurisdiction, tax, or transaction/services. To accomplish this, open the Tax Logic Modifier and select the jurisdiction for which you want to shut taxes off. If you wish to shut off the selected tax for specific transaction/services, select the transaction/services in the grid.

When you click on the “Shut Off Logic” button, a dialog will be display to allow you to select the action that you wish to take.

Shut Logic Off Dialog

image

Shut Off Options

This dialog will give you the following options:

  • Shut all taxes off for this location. If this option is selected, AFC will not return any taxes for the selected jurisdiction.
  • Shut all taxes off for the selected transaction/services. This option indicates that no taxes will be returned by AFC when processing tax calculations for the selected transaction/services.
  • Shut the selected tax off for the selected transaction/services. This option indicates that only the selected tax will not be applied to the selected transaction/services.

Override Scope

Similarly to creating other types of logic overrides, you can select the scope of the override in order to specify whether the override should apply to all locations in the state, all locations in the county, or only the selected location.

Saving the Override to the File

After selecting the scope of the override, click on the “Ok” button to save the override to the file.

NOTE: When you save an override to the file, that override will be applied to the AFC RLM. Therefore, the Tax Logic Modifier will now display the overridden tax logic in the grid. Also, if you are using the override file being edited with the AFC Viewer, the AFC Viewer will immediately reflect the changes made to the override file.

Overriding Territories

The AFC RLM provides the ability to override tax rates and tax logic for United States (US) territories.

  • To override Federal taxes for a US territory, please enter the country USA.
  • To override State taxes for a US territory, please enter the state level PCode for the territory.

Viewing Override File Contents

Open Override File

When using the AFC RLM, you may click on the “View” button in order to view the contents of the selected override file.

View Override File Contents

image

Alternatively, you may also open any override file in your system from the menu bar. Click on the File menu, select Open, and click on “Override File.”

Open Override File

image

A form will be displayed within the AFC Manager to allow you to review the contents of the override file. This form contains three tabs to display the different types of overrides that stored in the file: sales tax overrides, other tax overrides, and tax logic overrides.

Deleting Overrides

To delete an override from the file, select the corresponding record or records from the grid and click on the “Delete” button.

NOTE: When you delete an override from the file, the AFC RLM will immediately apply the changes made. Therefore, the Tax Logic Modifier and the Tax Rate Modifier will no longer display the deleted overrides in their corresponding grids. The original tax rates and logic will be displayed. Also, if you are using the override file being edited with the AFC Viewer, the AFC Viewer will immediately reflect the changes made to the override file.

Appendix A: AFC Manager user permissions

If you have installed AFC Manager in the default installation directory, the default location for output files is C:\Program Files (x86)\BillSoft\EZTax Manager\Output Files. Depending on your Microsoft Windows user permissions, you may not be able to save files to this system directory. If you save a file and do not see it in this folder, check the C:\Users\user.name\AppData\Local\VirtualStore\Program Files (x86)\BillSoft\EZTax Manager\Output Files directory. 

  • Was this article helpful?