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Return Preparation Training Transcript

Training took place on 11 August 2020

Participants: Dana Jacklin (Trainer), Ricky Ortiz (Partner Implementation Specialist), James Bullock (Partner Technical Account Manager), Steve Garriott (Sr. Technical Writer)

Transcript

Dana:

All right, so before I have it switch completely over to [redacted], this is our mega firm, the MRA. And I've got it for July because that's the period that we're going to be filing for this month. And with MRA and July and just the US, none of the firms right now have any Canadian, so we won't have to flip over to the Canadian side. But just leaving it at that, I did not hit go yet to hit for [redacted]. So this is all of the returns right now. I've tried to take this filter off.

Ricky:

Real quick, Dana.

Ricky:

The peach is indicating some type of variance. Is that correct or?

Dana:

So anything that is pink means that there is a variance.

Ricky:

Yeah.

Dana:

That we'll need to resolve for.

Ricky:

Awesome. Does that show when in RC, before it gets to ready for filing status or ... ?

Dana:

It works the same as it did when we were working in workflow, where you would have to validate. Remember if you did any prepping, any bulk prepping. So if you picked out an entire state like California, you could have all of these but be pink. And as you go through and you realize that you've cleared your validations, and for whatever reason, it was still pink, then you could go in and you could right-click validate, then that pink would go away. So that's just accepting the validation errors in quotes, that were on the return.

Ricky:

Okay.

James:

So pink means validation errors, but ready for prep can still be a status, because I'm seeing that up on the second one down there. And I'm assuming that it's because of that note.

Dana:

Right. So all notes are automatically going to stop it.

James:

Okay. So you won't get prepped for notes or pink for notes. You'd just get it for variance.

Dana:

Well, you potentially could have a note and it'd be pink because you have validation errors too.

James:

Right. Okay.

Dana:

So either one of those would stop the return from auto building.

James:

Right.

Dana:

And this month we were at sixty, well, Zeta right now has not approved. They had... Guy went on vacation last week and didn't realize that everything was due yesterday at five. And the files, he just reached out to the client yesterday and asked for the files. So he's importing Zeta today then we'll lock it down. But that should be in the next couple of hours, he'll be done.

Dana:

So this is my grid for all of the MRAs. I have 215 returns for MRA down here, above the provide feedback button. We are going to do [redacted], so I'll just pull [redacted] out of here. If I can spell this morning. I still can't spell this morning. Come on, cup number two. You think that'd be good?

James:

[inaudible 00:03:34] any caffeine yet.

Dana:

You haven't had any yet?

James:

No, uh-uh (negative).

James:

All I've had is water so far.

Dana:

It's part of my daily routine. Go downstairs, let the dogs out, run the coffee, go outside, water plants, come back in here, coffee's done, come upstairs. Every single day.

James:

Rinse and repeat.

Dana:

Yep. So we have a total of 14 returns for [redacted]. Some of these are ready for filing. I don't want to see those anymore, when I do the prepping, I like to see my list just disappear. So the first thing that I do, and if you were in here and you were in the middle of a cycle and some people were transmitting, I would get rid of those statuses as well. Just so I can see what was left. Or you could just uncheck this and just say, give me everything that's ready for prep. The only thing with ready for prep, if you had some that were unlocked for whatever reason, pending approval... Sorry, let me answer Donna. Donna's got a [redacted] question, which is [redacted]. [redacted] wanted to import just RTT tax credit and RTDS team was helping them.

James:

To do credit only?

Dana:

Yeah, credit only on RTD for Colorado, which is going to be a nightmare. Donna thought that she had it, but apparently she doesn't. So she's asking for help. So I'll have her reach out to [Adea].

James:

So RTD is a company?

Ricky:

It's a regional transit authority.

James:

Oh, so it's like RTA here?

Ricky:

Yeah.

Dana:

Yeah, and they're doing it with Colorado, so it's just a mess. And Hartwick, they've been just making changes to Colorado and it's like piecemealing tax credits for certain jurisdictions. It's a mess. Makes it a mess. Okay. So this one stopped, back to Hartwick everything. So I just have everything ready for prep. Everything's a monthly filing frequency, which is something that I'd want to check on the onset just to make sure that something didn't populate into my grid. That was a monthly, I mean, a quarterly or a annual, semi-annual, and if it did, then I'd want to reach it, look into the filing calendar to see why it pulled it for this month. So New York would be one that would pull in as a quarterly for next month, because they have weird filing dates.

Ricky:

You're just looking for abnormalities based on the month that you're in, since we're filing July. Yeah, you wouldn't get any semis or quarterlies unless they were on the odd schedule. Okay.

Dana:

Right, so occasionally we will get that Hawaii, that's an odd month.

Ricky:

Yeah, for any fiscals. [crosstalk 00:07:00].

Dana:

Right. We get an annual one that just pops in weird months and is like, Whoa, why are you here? Then you go to the website and it's the valid end date.

Ricky:

Gotcha. You go and check in the DOR, is that what you mean?

Dana:

I do. I'm not going to say I don't have trust issues, if I'm going to take the time to prep any annual return then I'm going to be able to file it on the website.

Ricky:

Yeah. Trust, but verify, accountants love that stuff.

Dana:

Absolutely. All right, So let's pick an easy one first. So Arkansas, we've got zero... I'm going to close this up so you don't have to see this, and it gives you more screen. Arkansas has a zero tax liability. It does have a note. So we're going to go onto the return and I need to figure out why my screen extends over to the other screen. I've got a new laptop.

Dana:

So here they have, oh geez, here-

Ricky:

Yeah you said there's no gross, but yes, there is tax. A positive liability and a negative-

Dana:

Oh lordy, what are they doing? I think they did the same thing last month. And it's for vendor's use, so even for vendor's use, they should be passing this. Even though we would have to back calculate into it. So I'm going to make a note because they let this go and this is on the 11th, but I'm going to put [redacted] as a note to look into and talk to them about

Ricky:

What they want to do well, or probably is your process to essentially figure out what the back calculation is for gross cells and get them to approve that adjustment and slam it in here.

Dana:

I want to make sure that they realize that they're just passing tax and they're not passing a gross, even though this is Arkansas. And Arkansas doesn't report a gross on their return. So Steven in here, you've got gross receipts, vendors use consumer shoes, so you've got three buckets on the Arkansas return. And it starts with taxable sales. So the first column is taxable sales here and it'll calculate, this is all on the state side. So this is state only. Then if I scroll down, this is where they would list out any local jurisdictions that they have to report to, that they collected to. And we would just put, it's either sales or sellers use or consumers use, would go into these buckets.

Steve:

So that's where you would manually add the gross from sellers use?

Dana:

So there would never... We don't enter... There is no gross reported on the Arkansas return. So Arkansas, they don't want to know your deduction breakouts. They don't want to know your gross. They're starting straight up on taxable.

Ricky:

Yeah, but the call out here is that they should still be passing gross for reporting and AvaTax and even though it's not on the return, right? It should still be as gross.

Dana:

Right, because all they did was just give us tax, that was it. So we will be remitting the tax that they gave us-

Steve:

And back calculating...

Dana:

And It's back calculated, so this would happen regardless, but it's still an incomplete import file.

James:

Yeah.

Steve:

So they would have then... Is there a missing field in their import file then?

Dana:

They just left it blank.

Steve:

They didn't put the... But they should have put something in there, right? For us.

Dana:

They should have put it in there, yes.

Ricky:

And for their own books too, because [crosstalk 00:11:22] you got to think about it from an accounting standpoint too, is they're essentially passing a tax only transaction and for the return it works, but for a complete data set and for reconciliation and auditing and records, they should certainly be passing a gross amount. There's no reason not to.

Steve:

Right.

Dana:

So the important part is too, is that if they pass gross, they can run a report out of our system and they can identify all the gross sales for a particular company and they can tie that against income tax. So reporting their gross sales for income tax purposes. And so you want to make sure what we report for sales tax gross is the same thing that you're reporting for gross on your income taxes.

Steve:

Right, because they're going to compare them.

Dana:

Right. So the first thing an auditor does when they come in, if they were going to come in and audit [redacted], show me all of your... Show me your income tax returns. What did you file your income tax return? Do these $2 amounts match for gross?

Ricky:

Mm-hmm (affirmative).

Dana:

And if they don't, that's a red flag and then they start diving deeper into it.

Ricky:

Yeah, I was just going to say it too, if you're the DOR and you're looking for people audit and see somebody shoving over, well I guess on the return, you wouldn't see it, nevermind.

Dana:

So it's nothing to call out as far as documentation for an accounting firm because accounting firms are going to know that, that reconciliation needs to be done between the income tax and sales tax. If it's an accounting firm, not individual businesses know that, but [redacted] definitely should know that. Especially if they're filing their income taxes, corporate taxes,

Steve:

Which is probably what's going on, right? They have a whole package of services for this company, right?

Dana:

I would imagine. So with this return, if you don't have... Oh, let me go down on this side. So validations, there are no validations. We did not make any overrides. If we changed anything on the return, the override would show up here, the override section. If there was a note to say file everything and this happens periodically too, instead it'll come in at a vendor's use and we're supposed to report everything as the gross receipt. So there'd be a note here, which means it would be a text type issue with the data that they passed over to us or their Nexus is set up incorrectly. I don't remember why, I swear last month, maybe, I broke this down just because I got the note. I will check on that. So otherwise this is ready to go. And all we would do is hit ready for filing.

Steve:

And does the ready for filing button override everything? I mean even if it's... Or does it have to be... Well, I mean the gross and taxable there isn't, I guess they do match, there's zeros on both sides, but is that kind of an override that pushes it through anyway?

Dana:

So what's going to happen is that the customer approved or it auto-approved $533.89, the system rounded up to 534. This automatically goes to rounding the 11 cents. Nothing happens to the taxable sales in the books because the only thing, once we hit ready for filing, and if we change any amount, if we change any tax amount, it affects their funding.

Steve:

Right, right, right.

Dana:

So all this is going to do is 11 cents rounding and they'll get that 11 cents back next month. For funding purposes, we will collect on this return, we will collect $533.89, even though we're paying 534.

Steve:

Okay.

Dana:

So next month, when we do a funding pool, this will be an adjustment and we'll collect an additional 11 cents for this return. That is something accounting firms need to understand too, is what their liability is for the current month, is the amount that we're pulling. Anything, any adjustments, any differences here, will be taken care of, the variance will be picked up in the following month.

Steve:

But that difference is always going to be under a dollar though, right?

Dana:

It should be under a dollar for PRS customers right now, it depends on what state it is. There's some States that have locals that vary and each individual local may be less than a dollar, but the accumulation of all of those under a dollar, may be up to 4 or $5, that's Colorado. Colorado, we try not to plug 4 or $5... Have a variance of 4 or $5, so we would plug it somewhere. All our numbers could be absolutely accurate all the way down, but we could still have 4 or $5 variance depending on the liability. Good?

Steve:

Yep. That makes sense.

James:

Yeah.

Dana:

So I'm going to hit ready for filing and all of this does is just changes the status and it'll add this 11 cents to their rounding. And here it's nice with having the right side paid. If it's a return that simple, where it's just state and a couple of locals, then we don't have to run any reports. On the core side, they don't do... They don't run very many reports. PRS, we run reports for almost every single client.

Steve:

But again, you knew what to do with that particular return because you understand that state.

Dana:

Mm-hmm (affirmative).

Steve:

So that's number one, they need to have a background in understanding how each state works or else it's going to be harder for them to prep, I would assume it's not impossible, but it would be harder.

Dana:

So maybe we... There's more return, there are a lot more returns that show a gross. On the return that don't show a gross, I was thinking about maybe doing a pivot or at a table, I don't know.

Steve:

Yeah, we'll have to decide how much information-

Dana:

We'll have Ricky here, figure that out. [crosstalk 00:18:50].

Ricky:

Actually one thing that I've recently thought about is that we have a lot of great content in Wiki about filing requirements and nuances. That some type of resource that combines all that great information could really be a treasure trove for ARA, MRA folks. They're using our system, we know our system better than anyone else and these are our checks. So how can we make something that's partner facing, utilizing our best practices, our knowledge, right?

Steve:

Right. Yeah, that's going to be a lot of work because you are going to have to do a little bit of cleansing of that information to pull out stuff that's proprietary or just sensitive. You're going to probably need another writer, [to do] part of it or somebody that's supposed to do that, that's their job. But...

Ricky:

Yeah, it's a need I think, out there and it's something we got to start on, but you're absolutely right Steve, there's still a lot of work there. Proprietary information, outdated stuff, it's written for us, of course too, it's not necessarily written for someone else to understand. So all considerations to be taken into account.

Dana:

Ready for the next one?

Ricky:

Yeah.

Steve:

Yep.

Dana:

Any particular state? Anybody want to pick one?

Ricky:

Ah, let's see, what do we got here?

Dana:

Otherwise, I'll start with state... We knock out all the state only ones first, and then...

Ricky:

How about Washington?

Dana:

I've said state only. All right, I want to go to Massachusetts, let's knock out the state ones first, so Steven gets... And James gets the idea of how these returns work before we start going into a P&L.

James:

Difficult, yeah. That's exactly why I said Washington. I was like, oh B&L, but I guess I didn't hear the [inaudible 00:21:01]. At first, I looked at Louisiana and then I'm like, "Wait a minute, I'm not going to say anything."

Dana:

Although we can get there too, those are easy. We just need to make sure that Steven comes out of this understanding how the returns process works, so he can do the documentation on it.

James:

Okay. I'm going to make note of that, Steve.

Dana:

Okay. So this return, again, they didn't pass gross, so seems to be common theme with them, but the tax is $175.65, there's no tax variance, there's no discount. The error is a gross amount because the gross amount doesn't tie to what the return says. This return itself, reports a gross and report's taxable. So-

James:

Oh, I was just noticing, you said you were going into Massachusetts, but we're in Pennsylvania.

Dana:

Oh we're in Pennsylvania, sorry, we'll go back. This one's easy. This one's a state only as well. It does have these three locals, but they don't have anything in those locals.

James:

I know it just threw me off cause I was expecting Massachusetts.

Steve:

So does that mean that they didn't do any business in those locals?

Dana:

So they didn't do anything in Allegheny or Philadelphia.

Steve:

Oh okay.

James:

So they say.

Dana:

[crosstalk 00:22:32] So the data reported. So here is the hotel tax on this third column, we would... We don't use this column, sales tax side doesn't. Lodging may, but we don't.

James:

What about ARA firms? Would they be able to?

Dana:

They can use it, yeah. I mean you could put a dollar amount in here. I can put $10,000 and then I could put $10,000 here and then it's going to calculate, through the calculations down.

James:

I guess my question is, is this something that they'll probably use? That, are they going to be doing lodging tax as well as sales tax in the program?

Dana:

I hate there's a lot more lodging returns, that they would need a catalog for it, this one just happens to have the hotel tax on the same as the sales tax return.

Dana:

So to get rid of these, all I have to do is just hit this X here and they go away. And the little green up here, when it's doing the circle, it's just doing a calculation. If you are on a return that you are making a lot of adjustments to and you don't want it to recalculate every single time that you enter in a number, you can turn it partially off or you can turn it completely off. And then once you're done entering in all your adjustments, then you can come back in here and tell it to run the auto-calculate. And it will still auto-calculate the ones that you previously put in.

Steve:

That's cool.

Dana:

So we've got $175.65, so it plunk that in there, it did the back calculation, the system did or the return did. So it calculated that the taxable sales were here. And since they did not give us a gross, our gross becomes our taxable amount. And there's no deductions.

Ricky:

Does it, Dana, show the account number, the AvaTax account number anywhere in here for [redacted]? I was interested in their data and wanted to see if they just pass tax liability or not everywhere. Just curious.

Dana:

They would, you'd have to look under [redacted] and then [redacted].

Steve:

Okay.

James:

This is in Outer Harbor, right?

Dana:

Yes.

Ricky:

Yeah. They probably aren't just passing tax liability there, neither they've reviewed their process.

James:

Yeah. I'm guessing if it was an AvaTax account, there would be a gross there.

Dana:

Oh absolutely. Our system is going to calculate everything. So this is, most of their clients are Outer Harbor, there's only a couple that aren't and we're moving the data for them because those customers have an AvaTax account. So they're paying for our services and then their paying [redacted] to have us file the returns for them. So then we have... We start with the tax here, we've got the discount, we've got the tax amount that's going to be remitted to the jurisdiction. This stuff doesn't need to be filled in because this return is either going to be filed on the website directly or through automation. And if it gets filed through automation, then it just picks up the figures in the SIF and then sends it out.

Ricky:

So we're going to say, this is ready for filing without having the liability summary show the gross? Is that right?

Dana:

So the return is being reported with the gross.

James:

Right. But our records won't show the gross of it.

Dana:

Because the customer didn't pass a gross when they sent over the data.

Ricky:

Okay, and we-

Dana:

When they imported the data.

Ricky:

So when we get to the point where we can actually edit transactions, is that something that you would do or is that something you would just leave?

Dana:

No, because if you think about an import file, import file could be thousands of lines. And I have no idea what their gross amount starts with.

Ricky:

Or where it's coming from.

Dana:

If you are an individual line, I have no idea what that information is, unless you tell me.

Ricky:

Yeah, okay, that makes sense. So it's not really the totals that we're concerned about, it's how the import data shows or how you get that total from all the import data transactions.

Dana:

Mm-hmm (affirmative).

Ricky:

Okay, that makes sense.

Dana:

So this one I'm going to ready for filing. I could hit the save button. If I hit the save button, it would stay in ready for prep. But if I made any changes to the return, then it would stay... If I made any changes to the return, my changes would save in the VFE, in the return itself. But it would not put it in ready for prep or ready for filing status automatically. It would stay and ready for prep.

Steve:

Can you define VFE for me? The acronym.

Dana:

Virtual Forms Editor.

Steve:

Okay.

Dana:

[crosstalk 00:28:20] in Adobe.

James:

I saw that somewhere in the UI and I was like, what's that? So thank you.

Dana:

Okay, we're going to Massachusetts.

Dana:

I think.

Dana:

Still spinning up there. There's visual form editor right here, so it's going to Massachusetts.

James:

I really like that the fact that these forms auto back calculate the gross.

Dana:

Does everything for you.

James:

Its beautiful.

Dana:

So are you getting the impression Dana, that we're trying to kind of downplay the term VFE or Visual Form Editor, to just say, this is prepping?

Dana:

If you-

James:

I'll need to check with Bruce about that too.

Dana:

I'd look at it this way, if you see Visual Form Editor, go to Visual Form Editor, it's like a home key on your keyboard, [crosstalk 00:29:43] home and everybody's like, "Well, where's home?" So if you're saying VFE in RC, there is no label in here that says...

James:

There's no button for...

Dana:

... Virtual Form Editor and so this is a return. This is what the state return looks like.

Steve:

Right.

PART 1 OF 5 ENDS [00:30:04]

Ricky:

Right.

Dana:

... it's state return looks like.

Ricky:

Right.

Dana:

So.

Ricky:

I think that's the direction we were going to go. It's like, when you click the link for the form, then the return opens up and then you could do stuff in here.

Dana:

Right.

Ricky:

Yeah.

Dana:

I wouldn't hold, I wouldn't stake or put everything on visual format.

Ricky:

Right.

Steve:

That's just a behind the scenes, right?

Dana:

Right. It's just what we use in order to prep returns. All of them. Every single return. Okay. So here's Massachusetts. Our dates are correct. We have a gross, there's no exempt sales. There's no gross here. We've calculated.

Steve:

We've calculated again, right?

Dana:

Same customer.

Steve:

Yep. We are doing it again.

Dana:

They back calculated. If you wanted to, you could always check the math on the return. It should always work 243.96 divided 0.065. There's the amount. But there was some routing by a couple of cents, so we will file the 28 cents. Because we're not going to change the gross that our system calculated for gross amount, by a few cents. There's no discount on this return and the bottom line is $243 and 96 cents. This one stopped-

Steve:

This is what they only passed.

Dana:

Which is exact amount that they passed.

Ricky:

How can you look at this and say, there're no discounts.

Dana:

There is no discount on the return. You've got total sales tax.

Ricky:

Yeah.

Dana:

So usually it's after taxes, so you have a total sales tax, used tax, total used tax, total sales and used tax and there's no discount on the return, because here's your total amount to.

Ricky:

Plus sales [crosstalk 00:32:03] right?

Steve:

[crosstalk 00:32:05]. The total sales tax and the total sales and used tax are the same number, so that shows that there's no discount.

Dana:

There's no discount line on the return. The state doesn't recognize that.

Steve:

Okay. It doesn't recognize any discounts.

Dana:

Right.

Steve:

Okay. I get it. Okay.

Dana:

And then nothing was calculated over here. Okay.

Steve:

Gotcha. Got it.

Dana:

Which isn't always the case. Sometimes it doesn't calculate here. And so you'll want to double check to see if there's a discount option, if there's a discount option, but if say it's for South Carolina, South Carolina does have a discount cap per year. It resets July 1st of every year. So at that time for South Carolina, it's based on FEIA [inaudible 00:03:00], and you had need to either track it or rely on the system, our system, to track that discount accumulation over the year. Does that make sense or did I lose you?

Steve:

No, I think I got it. I'll play it through my brain again. And if it comes up again, it might make more a little more sense too.

Dana:

Okay. So there is nothing left on this return to do. The reason why I did not auto-build is because I have a note on here that says, "Do not file via paper."

Steve:

Okay. Otherwise, it would have bought a build, right?

Dana:

Right.

Ricky:

Yeah. I'm just going to say this out loud for you to confirm Dana, they will all auto-build unless you have a nail on them or there's some variance, is that right?

Dana:

Appropriates. Yep. And with these guys not having a gross, our gross is never going to match, so you've always got this validation issue right here. So this is going to cause it not to auto-build as well.

Ricky:

Yep. Imagine that's a big reason to go back to Ruben Brown and say, "Hey, look, check your input process for this because we want to automate everything as much as possible."

Dana:

You're messing with my numbers, my automation numbers, you need to do input gross.

Dana:

All right. So ready for filing. And then if we wait for the spinning wheel. Changes have been applied and I do have my setting set for after I hit ready for filing to close that page. I could hit ready for filing and then have that box checked in my settings to leave it open, and then I close it, but there's no need for it, if I hit ready for filing, I'm ready to file, it's all approved. So have the return close on its own.

Steve:

So is that in your user preferences?

Dana:

Yes.

Steve:

Okay.

Dana:

Yep. Louisiana. So Louisiana, remember we always start with the State return because the state return will rebuild the locals or the parishes afterwards to ensure that our gross sales are reported on our locals with the same gross sales amount. So on every parish return that we file, the gross is going to be $4,386.

Ricky:

Quick question, Dana, if there's a tax type mismatch involved would you be able to see that in prep details or would that liability not pull in at all since it's sellers use tax, setup sales tax, as an example? Would you see that here in BFE? Or I mean, theoretically, you should see it way before you get to this point, but I'm just wondering.

Dana:

So if it was, let's say a Missouri return and you have the 53V setup and you have your sales tax or your next is set up and your data is all sellers use, your sales tax or return would come in with nothing.

Ricky:

And the liability and tax amount here under prep details. it would seem like it's in sync, you wouldn't see a problem from-

Dana:

Right. We wouldn't it there.

Ricky:

... this limited perspective.

Dana:

Right.

Ricky:

Yeah.

Dana:

Okay. That's where we rely on the customer to look at the liability summary to see if there're any variances.

Ricky:

Yeah. Thank you.

Dana:

It's important for them to look at the top and the bottom to make sure that it's total tax ties out to the allocation that's going to each individual return. I can show you as soon as we're done with this one, this one will be easy. So our taxes back calculated by our tax rate 4.45%, 195 they're. This return is rounded. So we're at 195, 18 cents goes to rounding. Our validation issue was our gross. And it's reported down here as an error because they didn't put in gross. $2 of-

Steve:

Shopping, that they did.

Dana:

And $2 of vendors compensation or timely filed discount.

Ricky:

I see a place here too, about marketplace adjustments, is that to make adjustments to the liability remittance because the marketplace paid.

Dana:

Correct.

Ricky:

Okay.

Dana:

So here they want to know the amount of sales that you... marketplace sales that you had, and then you just back those out of your total sales.

Ricky:

I'm sorry, where is that on the form?

Dana:

Marketplace. Is it on this one?

Ricky:

[inaudible 00:38:29] Right. Does control F search work on this, just curious?

Dana:

Actually you can just do appear.

Ricky:

Oh, perfect. Okay.

Dana:

So not all returns have the marketplace in it.

Steve:

This one doesn't seem pretty right.

Dana:

Right.

Ricky:

So in that case, it just gone to prepaid liner, some [inaudible 00:38:55] .

Dana:

It would be, if they had marketplace, then it would be excluded on here because it wasn't included in, there would be an adjustment and it would have a marketplace adjustment here, backing it out.

Ricky:

Gotcha. Okay.

Dana:

So then it wouldn't affect your total tax. So I'm going to hit, ready for filing on this one. And then it's going to tell me that there's downward stream, which means it's recalculating the parishes. Here's the filing test has a downward stream. I should have clipped it instead of trying to hover over it, I thought if I had hovered over it would stay. I did have a couple of parishes here, so they're rebuilding right now, if I open this filter back up... lets see if I can do it quick enough, where I could still see them building. St. Charles building and return, so all this is doing is ensuring that my gross is the same as what was reported on the state return. And if I hit refresh and refresh... Okay. So while we're waiting for that to refresh, we can go over to the liability summary real quick.

Dana:

We're going to be looking at [redacted]. So what I was saying to make sure that the top and the bottom tied. So if I go into Kansas here, I want to make... Sorry, Kansas is zero. My total sales tax is $1,271 and 77 cents and it ties to what's being allocated to these returns. So even for Louisiana, $193, here's two returns or $195 and $195 is being allocated down here for the month.

Steve:

So is it sort of a regular step to go back to the liability summary and look at it just to make sure there isn't? Is that something that you would do or only in certain cases?

Dana:

If I came across a return for PRS and ran a report that didn't appear to be correct, late coming over to my return, then I would go here first to see if there was an outstanding liability that was hanging out, that was not allocated to in return. I would use it for troubleshooting only.

Steve:

Okay.

Ricky:

I think this is-

Dana:

It's not going to give-

Ricky:

Go ahead.

Dana:

It's not going to give you any more information than the top level sales. I just want to make sure that my total tax that they've approved, so for Illinois, the customer's approved this dollar amount, this $1,255, if I pulled a report and that report varied in any way, then I know I've got an issue because the customer only approved that dollar amount. So then I'd have to do some more digging to find out why my tax doesn't tie from my report to what they approved. And sometimes it's a carry over credit.

Steve:

Right. But then again, some of these could be just auto accepted though, right?

Dana:

Right. But it's the same thing. Even if they are auto locked on the 10th, the system right at five o'clock on the 10th, these are my final numbers. If these are my final numbers, my final numbers should match my report.

Steve:

Okay. And it's their responsibility to look over these numbers anyway. Correct?

Dana:

Absolutely.

Steve:

Yeah. So if they don't... No news is good news or no news is their job, really.

Dana:

It's their responsibility. And that's one thing that we keep trying to push to the customers just because you put your data in, doesn't mean it's the expectation... your expectation, and you need to come in and you need to reconcile-

Steve:

Right. You're right.

Dana:

... you need to run the summary and make sure you reconcile everything out and make sure that there's no variance on your book.

Ricky:

It's a big-

Steve:

Right? So your numbers match these numbers.

Dana:

Right.

Ricky:

It's a big misconception out there that filing is automated. And I like to tell customers that, that's true. You did buy an automation. However, your responsibility is to make sure that all the data came into the system between the 5th and the 10th through reconciliation, because we don't know otherwise. We don't know if you filed $10,000 last month, if you filed zero thousand dollars this month, if that's an issue, or if you just shut down business, we don't know. So it's their responsibility to approve reconcile and if they don't we'll file what's there. It's a big misconception and that's how I approach it.

Steve:

Right.

Dana:

[crosstalk 00:44:44].

Steve:

And the excuse that I didn't know is probably not going to across when they get audited.

Dana:

That's the wrong answer, you tell that auditor.

Steve:

That's what I was thinking.

Dana:

You just open it up.

Ricky:

It's like [inaudible 00:44:59] dollar signs in their eyeballs then saying, "Okay, you really are an opportunity."

Dana:

Now we're going to look at everything.

Ricky:

I think what Dana's showing here though, is when you spot a red flag in VFE, or when reviewing a return that was approved, especially for States with locals I'm guessing, that this is a really good resource to come and use because it will show you what's allocated to CODR or 100, and just as an example, and what's unallocated because of, sales and locally administered jurisdictions that don't have any returns scheduled, which is going to throw your amounts off. Is that right? Dana, is that what you showed?

Dana:

You're Right.

Ricky:

Cool. If it's a real easy way to use the system to show you like, "This is where the $10,000 that was collected, but is missing on the return. And this is the allocation between 20 different locals," without having to do it in a report because returns console is smart enough to take that report data and spit it out from a filing perspective, assigned around assigned.

Steve:

Gotcha.

Dana:

Good on that. Let's go back to filling task. I know that my Louisiana's built, it's got to be. All right. So I'm going to... ready for [crosstalk 00:46:41]

James:

The rebuild, made the St. Charles return good to go with no variation.

Dana:

Correct.

James:

And it automatically went into ready for filing status.

Dana:

Right? So it goes through that check to see if there're any issues, any errors and there weren't, so it auto approved, the auto built. So there's my $4,386. And then it takes everything for Louisiana. You have your gross here and then everything, if it's a zero tax collected, everything is sales delivered or shipped outside of this jurisdiction. So that just lets the parish know that the State had this much, that you did that much business in the State, but you didn't do any business within our parish.

Steve:

All right.

Dana:

So I'm just going to hit back here.

Ricky:

When it comes to rebuilding Dana, is that the button there on the top right hand corner, that circular arrow button.

Dana:

This one, the gear.

Ricky:

The gears is to rebuild. Okay. The other one's refresh, to then refresh the screen. And if you rebuild in RC that supersedes, whatever queue is backed up in AvaTax, right?

Dana:

I don't know that it's supersedes AvaTax or not.

Ricky:

Workflow used to, if I rebuild in AvaTax, it'll take forever, if I went into Workflow and rebuilt, it would pretty much do it.

Dana:

Interesting.

Ricky:

So I'm hoping that's the same way this is or maybe I'm wrong, and that's just what I thought back in the day.

Dana:

There are some times here that the rebuilds here could take a while. And we do have... If you're in your username and you hit your dashboard, it'll tell you how long it takes things to build or for the queue-

Ricky:

Replecate some data.

Dana:

Right. Also, there's another build queue here, so you know where you are in the build, although mine is not working right now.

Ricky:

This is just your queue though, right? This is just what you've queued up.

Dana:

Right.

Ricky:

Or... Okay. Yeah. So much overlap with Workflow, I love it because I still know RC a little bit.

Dana:

Oh, I'm glad we've got a Workflow now?

James:

I think we use Workflow enough to really get a good... Most of the stuff that I did was outside of Workflow.

Steve:

Yeah. I haven't even touched Workflow.

Dana:

Don't even get Workflow in your head, Steven.

James:

It's gone.

Steve:

I will not, I promise.

Dana:

This to me is I swear is statistics sale. You can use Excel, you can use anything. Same with Excel, you have your menus up here, you just have different menu options.

Ricky:

Yeah. It's like Workflow had a baby with an online version of Excel.

Dana:

Exactly. Yep. All right, so that doesn't really matter. Let's do an Illinois. This is the way my life goes too, I can't go straight down on a line. I bounce all over the place. You just see my weekend chores.

Ricky:

Does that mean, when you drive to the store, it's random way every day, or sometimes.

Dana:

I never go the same way.

Ricky:

Yeah, I see.

Steve:

That's hilarious.

Dana:

I just can't do it. Sorry.

Ricky:

You're paving your own path, I respect it.

Dana:

All right. This Illinois. Illinois, I am going to... this ones they have all out of state locations here. Here would be a flag for me to look into because they did put a local in here at 8.1%. So generally, if this was a PRS customer, I would go to the website and find out if they consistently filed this 8.1% or if they put everything always out of Harper. And that would be the extra service. This is the extra service between PRS and Core or standard returns.

James:

Gotcha. Yeah.

Ricky:

Does it matter in this case since there's no gross?

Dana:

So they're not passing us a whole lot of information. So to look at their data, the data is not really going to help us out much. Because if the data that they passed us is all out of Harper or Illinois to Illinois because they didn't pass us the correct origin and destination. Then everything's going to go here anyways, so this is part of the problem with them not passing all the information.

Ricky:

Or is wrong, wrong origin and destination, addresses or even tax types in some cases. So your red flag here is the simple fact that, that 8.1 came in online 4A something's driving that.

Dana:

Right. Also they have excess tax over here, so they have a tax type mismatch.

Ricky:

I see. Okay. I get it.

Dana:

Because, here's the local portion, here's the State portion, the combined of it is going to go right here.

Ricky:

Yeah. They're calculating a sales tax rate, but reporting it as sellers use tax.

Dana:

Correct. So if we go back, so let's just take a look and see what they report on the State site. And the nifty little thing that they have here is that you can go to the DOR website directly from the grid.

Ricky:

I've always wanted wondered Dana, what a tax type mismatch looks like when there's no separate forms, because I'm worried that, that's a bigger issue than tax type mismatch with duplicate form because well, with separate forms, because separate forms people realize it. And when it's on the same form, it's really a filing and taxation issue potentially, so this is a visual and a light bulb for me.

Dana:

Yep. So my team said that there were no more issues, no more vetting issues. This filling calendar was set up June one, which is when we started. This is a vetting issue.

Ricky:

Yeah. Yeah.

Dana:

So if I go to ST1 here, so I just used the login credentials that was in the filing calendar.

Steve:

Right.

Ricky:

And that totally bypasses the two step authentication, like the code and all that stuff.

Dana:

No, it doesn't. It takes you to the website.

Ricky:

Or Illinois just doesn't have one.

Dana:

Illinois doesn't have one. I wish it did. It just takes you to the website, so you don't have to look up to know where to file your sales tax.

Ricky:

This layout is one of my favorite ones for, I think there's a group of DRS that have this, but I like it so much.

Steve:

We actually talked about that yesterday, the idea that you would actually go in and change the information, the profile, to send that authentication code to us or to both us and the user, so that we don't have to go searching for the user every time we wanted to go into the DOR site, am I saying that right?

Dana:

Right. So, but on the Illinois website-

Steve:

But this one they don't have 2FA.

Dana:

... has an option... It has an option to do an authentication code. We all chose not to do an authentication code, but otherwise the authentication would be a yes here, and then you could put the two factor code in. Right?

Steve:

Right.

Dana:

Right. So it's nice when they don't have the authentication because then you can just bounce in there and get what you want and then you bounce out instead of having to go find that.

James:

Big time.

Dana:

But this is where you would change that information. So if I go out here, the first thing I'm going to do out here being the main screen for sales tax, before I go into the return for July, I want to see the locations that they set up on their website. So if I hit maintain locations, I can see that they have two locations. One of them is closed, one of them was opened in 2015.

Dana:

So this one is supposed to go to Bellville and then they don't have any changing locations that are set up. I clicked too quick. If there were any changing locations would show up here, the site type would say, "Changing, going down in this column.

Ricky:

What does that mean?

Dana:

A changing location?

Ricky:

Yes.

Dana:

A changing location is, so if you are door to door or if you do home parties, you don't have physical building within the State, you're just randomly selling all over the place.

Ricky:

Gotcha. Okay.

Dana:

And so then you set up changing locations and this could be a nightmare, we have customers right now where this return itself is 300 to 400 pages.

Ricky:

Wow.

Dana:

Because they're in... so you have senegenin or pure romance. I think [inaudible 00:57:11] where they go door to door or they have these home parties all the time, so they have reps. They don't have reps who are doing business out of their homes, and that agreement with the company can be terminated at any time, so they're not a physical presence. They don't have to be registered with the State at their home address, so they are a changing location and all of these need to be set up that they're making sales into. I want to say there are 3,300 of them.

Ricky:

Geez.

Dana:

There are 3,200 here and there's a hundred here. So anything with 5,000 in the middle is a County. And the 001 is the County number, but then the 5,000 just tells you it's a County because there's a couple of them that have the same County name as a city name.

Steve:

Wow.

Dana:

So 5,000 is County. That's a lot of individual jurisdictions that we're reporting to and not all of them have to be reported to. Right now, I know that compliance has a conversation going on about turning on all of these, which would have to be turned on manually, for all customers who file ST1, ST2. ST2 means that you're filing changing locations.

Steve:

Oh, it does. Okay.

Dana:

And then you have to... It would all have to be trust filed. Right now we have a macro that takes an Excel spreadsheet, once you have it formatted, that looks up this code on a spreadsheet, and then it enters in the taxable amount and the change in location and the location site. And it populates all the information for you and you have to babysit it. So we have a couple of returns that take six hours of somebody babysitting it and watching it going.

Steve:

Holly macro. Oh, my God.

Dana:

Yeah. One person.

James:

So I tried to explain to somebody how enormous sales tax was and I didn't do it justice because every time we talk about stuff that expands, the world grows as I [inaudible 00:59:42]

Dana:

So we have people right now that are filing the macros. The macro list appears to be growing the macro list being the ones with a whole bunch of changing locations. The ones that are smaller, those could be prepped and filed during, or they can be filed while we're prepping.

PART 2 OF 5 ENDS [01:00:04]

Dana:

All right, they can be filed while we're prepping. And at least this state here is an ACH credit state. So on the beginning, on the 11th, we can start having people start doing these macros, putting it into the website and filing it because it's ACH credit. So it gets paid later. Which is convenient for us.

Steve:

So, what is that? I don't want you to go into super detail, but what's the basic difference between ACH debit and ACH credit?

Dana:

ACH credit or ACH debit is if I'm on this website, I want to pay all the way through. I can pay it on this return. The state will reach out to my bank and pull the money out. ACH credit is handled by our treasury department and our treasury department has an agreement and sends the money at one big file.

Ricky:

Okay. So the easiest way that I like to think about it is a debit, ACH debit is when you initiate the payment checkly through the tax department's website right directly?

Dana:

Yes.

Ricky:

And a credit is when it goes through Avalara. And the difference between debit and credit terminology wise is through the MyTax Illinois is you're pulling it from the bank account. You're debiting it. If you're going through AvaTax, AvaTax is pushing an automated clearing house transaction to the DOR who's receiving it. So just a little elaboration there from my banking days.

Steve:

That's helpful. Thanks.

Dana:

So I'm going to see what these guys did, what they've been doing as far as filing. So I would in the first return doesn't mean it's always right. The first return, some [inaudible 01:02:02] view the return and they put everything. They've not put anything on 6A which is the out of state.

Ricky:

And I think a thing to consider at this point too, is the conversion date, right? Like what date did we start filing for them? Because that's probably when the change happened because of the configuration of nexus and in AvaTax

Dana:

Right. Somebody let this go last month, put all the tax here.

Ricky:

Yes.

Dana:

I think at some point they're going to get a notice and they're going to ask why there are no sales to their only location. So I'm going to save them the notice. So last month was filed incorrectly. The month before it was filed on 4A. So this is the way the customer filed it because our filing calendar started on 6/1. So I'm going to take the tax that's in our system now and back calculate it by this the 8.1 and then move it up. And so that'll get rid of this excess surcharge as well. The excess tax here just means that you've collected an excess of the 6.25 that you've put on 6A and also you do not get a retail discount on the excess tax that you've collected.

Dana:

I think that they've got this setup incorrectly and so I'm going to help them out this month and then just move it.

Ricky:

It seems to me like these guys have a business structure where they sell door to door and are shipping their products from outside of the state and they have this configuration of AvaTax set up wrong. It's resulting in this.

Dana:

I think they have it all set up wrong.

Steve:

I hear you saying, I'll do it for them this month, but I didn't hear the but.

Dana:

The but is I have a note that they need to be talked to about their setup.

Steve:

Because they got to get the gross in.

Dana:

So I am going to also put a note in here as well. The monthly I'll just go to the filing calendar. Actually, I should do it this way. Let me back out of here. So I can put a note in here and I'm going to add a note and I'm going to do a general note. I want it recurring and customer files 8.1% on state website. It's an ongoing, so it's no end date. I'll end date this once this is fixed. So for the time being, anytime that there's data coming in, it'll never auto bill it now for sure, because I've stopped it with this note and then I can back calculate into the data to put it at a 8.1%.

Ricky:

The next month, assuming it doesn't get fixed, you can avoid all that research in the DOR and just do it.

Dana:

Right. So I'm going to add that note here and then I'll get a little note here. There's my notes. And it stays permanently till I tell it to stop. So I'm going to go into the return. And I feel comfortable doing that because that's the way that they've filed every single month up until the month that we started filing for them. So I will need my calculator because 127, 1.77 divide 0.081. So there's my new gross here. Or I could just take all of my tax 127, 1.77, put that there make that zero make this zero. And that matches my expected gross amount or taxable amount and the [via 01:06:28] fee recalculates my entire return based off the numbers that I put in.

Ricky:

Did that discount go away?

Dana:

My discount is now $22.

Ricky:

Did you say earlier that the sales tax types don't get that discount? Or maybe I heard it wrong.

Dana:

So excess tax, whatever the excess tax amount was here, the $291 does not get at the time we filed discount.

Ricky:

Got you. Okay. Thank you.

Dana:

And I know that this was recalculated because it's red.

Steve:

Will it always be red?

Dana:

Anytime that there's a change.

Steve:

And it won't go to black from this point on?

Dana:

No.

Steve:

If you reopened this?

Dana:

No, it would still be red. [crosstalk 01:07:23] That is an audit tracker for us to know what numbers on their return changed.

Steve:

And then the overrides too, right?

Dana:

Right it's up here. It also recalculated my gross. So my gross includes... So remember they don't pass a gross. So it's my taxable amount plus my tax, which is the total receipts here. And Illinois reports things differently. So they want your total gross plus your tax amount included in your gross. And then in your deduction section, they have you remove the tax amount.

Steve:

That I do remember.

Dana:

To bring you down to your taxable. [Inaudible 01:08:21].

Steve:

I think I'm starting to catch some of it. It's still missing some of it, but I can see where the numbers are coming from. And a lot of it has to do with how the form does the calculations too.

Dana:

Right. so my first instinct, no matter what return I'm on. If I know my tax, I always do a back calculation. And then I come in here and I'm like, Oh, I need to put it in the tax amount. But then I can always cross check to make sure that my taxable amount is the same that I calculated. So each form's different. Some of them you enter in... I would have entered in the 15,701 and then it would have taxed that. It would have calculate it down. But here I put the tax amount and then it did the calculations all around me. Good on this?

Ricky:

Roger.

Steve:

Yes.

Dana:

Ready for filing. And I'll close this back up and I'll refresh and then that went away. It's now ready for filing. All right, Florida. So who's coming over to compliance. This is pretty fun?

James:

I think it's fun. But I couldn't prepare the returns.

Steve:

I think I would like to be able to do it for no other reason but I would be able to write about it better, but this is probably the next best thing. I don't want... I try to convince people that I know enough to be dangerous. And that has proven several times. I brought down the help center once. The whole help center went down and then in another company, I actually turned a server off that was in California.

Dana:

Oh geez.

Steve:

I know.

Ricky:

You are a dangerous man.

Steve:

Don't teach me too much about Linux or you're in trouble.

Dana:

All right. So now this is Florida. Don't let this scare you. This is just broken up into here's lodging and here's sales use tax for lodging, and then consumers use for lodging. And then we've got sales tax consumers use for sales tax or consumers use tax. So the information up here, they have their counties are based off of surcharges and which is just a county rate, but it's broken down into these tiers. So if we were ever off on here, I would want to run a report because I would want to know which tier this comes into. And I would put the tax amount in here.

Steve:

And tiers are determined by what criteria?

Dana:

This is based off of which county that they're in.

Steve:

So they do a lot of business in just in that one pair or one county then.

James:

So they they can have multiple counties that are in the 0.5 category.

Dana:

Correct.

Steve:

Oh, I see. As long as they all are taxed at the same rate, they can all be jumped together.

Dana:

Right. So their state rate is 6%. So this one is... The customer's charged 6.5%. This one's 6.25. There also just a 6% to state rates. So this isn't broken down by individual county. This is just lumped up by the rates. 78 if a certificate starts with 78 in Florida, that means that it is an out of state vendor. They're from Illinois. They're shipping all their goods into here. If this started with an 80, an 80 is a consolidated return, which means that they have multiple locations within Florida. And they would have multiple of this return. So it would be an 80, which is a consolidated. Then they would go... You would scroll down and then they would have another return that could potentially start with an 01, an 05, and a 56. And then all of those returns together would equal this 80 as a consolidated return.

Ricky:

Nice. I like the tips with the numbers like that. I know that the same kind of logic exists with Virginia, right? 10 versus 12.

Dana:

Right. But those are separate returns themselves where they're all thrown in here together. So you could potentially have an 80, a 78, an 05 or a 56. You could have multiple variations in here, but if you have an 80, that means that you're rolling up more than just one return.

James:

It's crazy I've done Florida returns, but I've never done a consolidated one.

Dana:

Well, I've got one for you. If you want one.

Ricky:

I heard him say yes.

Dana:

Beacons return. I know Jessica does it on the website just because she wants to make sure that she... Hey that's my customer, or has always been my customer.

Ricky:

Beacon roofing company. I've worked there for five years almost. And that was one of my first projects was figuring out the status of their registrations and it was a mess.

Dana:

Oh my gosh. Did you work with Thomas?

Ricky:

I don't remember it was so long ago.

Dana:

Thomas [Eckels 01:14:52] he gave me Beacon. He's like, Hey, I'm leaving the company. I'm leaving Avalara. And I know you've been here for two months, but this is going to be your new account.

Ricky:

Beacon and then earlier you mentioned [SeneGence 01:15:08] and those are both customers that I've come across.

Steve:

I did the historical registrations for SeneGence.

Dana:

Oh, I wish Sharon was still at SeneGence.

Ricky:

I remember her.

Dana:

Sharon left. Now it's a lady named [Zeba Senu 00:15:29]. It was Sharon Jones.

Ricky:

Jones. I thought it was something else.

Dana:

She's really easy to work with. All right. So actually I had just checked my calendar because I have a call with Beacon at noon, it's going to be fun. So here's Florida. This is a consolidate... Or this is the Outer Harbor one. This is a tier 15, which means they only have one location on this. For tier 15 it's just one location. So here's my tax of 169642 and the way this works is I've got 169642, actually and then we go the other way. It did the calculations. It told me that my taxable amount is 26,098.50. So if I take that number, multiply it by 6%, which is the state percent minus by total tax 169642, $130 is allocated to my counties.

James:

How do you know that it went to the right county?

Dana:

Then that has to pull a report to make sure that it went to the right county. And that's where we test our technology that it's taking the rate and dumping it into the right spot. So here's my $130.51 cents, county tax collected $130.51 cents. If I scroll up here to the breakout by the percentage, I can see that it's $130.51 cents. So I know that this section matches that number. Now I could have multiplied this, came up with an amount that was my state tax due, and I could still have a little bit of taxable amount that's left over. And it would go to my other taxable amounts, not subject to surtax, which means it's just at 6%. So if I add my taxable amounts here, I have 26100 plus a dollar 26101. And this is 26101 rounded or not rounded. Make sense?

James:

Clear as [inaudible 00:18:54].

Steve:

I'll be rewatching this video again like six or seven times probably not kidding.

Ricky:

There's a lot of good nuggets in here without a doubt. I can certainly... I'm no expert when it comes to returns console or returns prep, but I understand a little bit of it from some past work and it's certainly re-watchable. Absolutely.

Steve:

Well, this, honestly, this video is what we need to give people. As we're talking about this stuff, I'm trying to figure out how I can convert this into words and on paper and some of it's going to work but you might need to do some short little videos, just like this, nothing [crosstalk 01:19:46] just stuff like this.

Ricky:

I was just going to say that the partner success team we've been working on ways to self pace or automate some pieces of our training. And so when you say videos, I can absolutely see the value of creating a short five-minute clip for each return. I hate to say that, Dana but it's probably true.

Dana:

I know.

Steve:

Well, as long as you do it improvisationally and you don't do it formally, then it's worth it. But if you start doing it formally because of the way that these things change, this environment is so... It flexes all the time. And so if you can do something... If, Dana could do something in five minutes, then she's done she doesn't have to rework it or put it into format or pretty it up, lipstick on a pig or anything like that, and just releases it. That's one thing. But if she constantly has to go back and redo these things every month it's too much work.

Ricky:

And if you think about ROI too, you create one video on all the checks and balances and tips. And if that resonates with the ARA or MRA folks, then when, Dana comes in here, it's 95% prebuilt ready to file you, click it, you do it.

Steve:

And clearly you don't have to do it for every form because most of them auto build, but the tricky ones it would be nice to watch somebody do it and including, okay, this, now I'm going to go to the report and I'm going to pull this report because I saw this. So those are the kinds of things that we're looking for.

Ricky:

I'd say less thought here, but the equivalent of this for AvaTax and returns is starting to be rolled out with the tasks-based or the scenario-based tasks. And that's what I see what I think we're talking about, but it's essentially, return base review tasks. But it's this same concept, if you guys are familiar with what the Avalara University team is doing with scenario-based tasks.

Steve:

Yes, I am.

Dana:

Good deal. The other thing to note on here is that the collection allowance is $30 per certificate number. So you could have five certificate numbers, they're all up to $30 max. So it's two and a half percent times your total tax amount due. And the cap is $30. So you could have anything less than $30 in here. And if it was an 80 return, then all of this would be accumulated onto the 80 and just show it on the top page. 80 will always be your first page.

Steve:

So why is that line have a red line through it?

Dana:

I have no idea.

Steve:

Oops. Sorry didn't mean to ask that question.

Dana:

It's always had a red line. I think it's just the way the return's scanned in.

Steve:

Okay.

Ricky:

One thing that I haven't seen yet are timely filing discounts anywhere.

Dana:

So that's what these are.

James:

That's [inaudible 01:23:26].

Ricky:

Okay.

Dana:

Just not on every state is called the same thing.

Ricky:

Got you. It's like allowances or discount.

Dana:

It would always show up here regardless of what it's called on the state website, it's going to show up under discount.

Ricky:

And discounts that are given by whoever as part of an invoice, those transactional data. So any discounts displayed here on prep details is really primary is really timely filing discounts or other discounts for conforming or filing timeframes or early or whatever it is. Right?

Dana:

Right. So the reason... So we will always calculate the discount here, but if the customer and it'll show on the return, we calculate it with the discount in faith that the customer is going to fund us the correct dollar amount. Now, if this comes back and the customer does not fund us the correct dollar amount, we can come back in here after the 12th or say they don't fund us at all until the 18th. The 18th is the day that usually treasury will pull all of the returns to find out how much we owe Florida. If they end up on a DNP, a do not pay list, then we can come back in and take these $30 out. Now we don't do that. We will go ahead and pay it, but they're on a DNP. So we would pay any part of this return at all. We would report this but not pay it.

Ricky:

Is this something extra that PRS does that Core doesn't? Or does, Core do the same thing?

Dana:

Core does the same thing. It'll just be on a DNP. It won't get paid, but it's calculated here. So, because we didn't pay the whole thing, the customer now can go out to the website and pay it if that's what they want to do, if they can do it timely. Otherwise they're going to end up getting a notice saying, you're late. And you also owe us this $30 back. And they would end up owing the 169642 instead of the 166642. Because at the gates, they're timely filed discount.

Ricky:

I'm guessing that DNPs or payment issues are pretty small in volume if both teams are doing this for all the returns that we're filing.

Dana:

DNPs of the lists were growing when COVID hit and not as bad as what we had anticipated.

Ricky:

That makes sense.

Dana:

But we still have customers who don't fund their bank account.

Ricky:

I'm honestly shocked that we'd go this far and we just don't file the returns and tell them now you got to deal with the penalties or whatever that come from it. [crosstalk 01:26:29] I'm impressed.

Dana:

A lot of the returns go automated though. Or we send the return paper and if they're a trust file, they're just gone.

Ricky:

Got you.

Dana:

Same thing with skyscraper they're out of here in... They at least the returns are filed, but we're not paying them for you. So I'm going to approve this return unless you guys have any more questions on Florida.

Ricky:

No.

Dana:

Oh, one other thing to point out of the surtax rate, if it was a local, if this was anything other than an 80 or a 78, if they had a surtax rate that was associated to an individual certificate number that surtax rate would show up here, which would be the rate that's here. One of these rates, it can't be multiple. It's only going to be one.

Ricky:

Makes sense

Dana:

And ready for filing.

Ricky:

So Dana, in terms of time to get through these, you probably can blow through one of these in like [inaudible 01:27:44] in most cases. Would you say that's fair?

Dana:

I can yes. Some of them especially on the PRS side, some of them are a little more complicated. Some of the returns you could spend 20 minutes on maybe. Minnesota, there's a couple of Minnesota returns and Beacon being one of them, you could spend 30 minutes to an hour on same thing with any back country returns. Just because Back Country has marketplace adjustments.

Ricky:

You say Back Country, what do you mean?

Dana:

Back Country is a customer of ours.

Ricky:

[crosstalk 00:28:28].

Dana:

Beacon, Back Country, ABC, some of those returns can take a while, but we're trying to automate things to the back end to make sure that it flows to the return correctly to begin with. Or we have a customer who has a lot of deductions. A lot of different deductions and they have all the use codes put into our system. So we have to run a report and then make those deduction breakouts on the return itself.

Ricky:

Looks like we're getting down to a couple of interesting ones.

Dana:

Just a couple, all right, here's Georgia. But to do [redacted], this probably would take me 15 minutes and just knock out all them.

Ricky:

That's what I was just trying to get a feel for our ARA people just thinking ahead, experience resource or what they're capable of. And I'm sure it's going to come up at some point in Q&A.

Dana:

For them I would really suggest bringing on one client at a time until they fully understood. I don't want... I would hate for them to bring on all of their clients at one time. And then having to figure out how to use all of the returns that we have set up. That would not be cool.

Steve:

Well, this is a messed up one.

PART 3 OF 5 ENDS [01:30:04]

Dana:

So-

James:

Well, this is a messed up one.

Dana:

So this one we brought in, they imported $1,088. The return only put on $484, so we have a $600 variance. So, we're going to scroll down, so we've got state, we've got county. So what do you guys notice?

Ricky:

I don't see anything on screen, but I think it's probably a text type mismatch.

Dana:

So there's no gross here, obviously, because this is [redacted], but there's also no gross on the return itself. The state reports should have a state. If you have a local tax, you should have a state tax. So this one I'm going to put in at 15082.50 because this is what it tells me is my taxable amount or my gross amount, and that can I hover over here... Oh, back out of here real quick, because I saw that change.

Dana:

My local taxable is higher than the state taxable by more than $25. So my taxable amounts for my state and my local should always tie. Always. So this did not tie, this has zero in here. So this is my validation error, up here with one.

Ricky:

Gotcha.

Dana:

So if I put 15082540 in here, then there's my 60330, and now I'm within 8 cents. And that's the combination of the [foresight and the fulton 01:32:00].

Ricky:

So, validation error. Can you elaborate on what that is and where it comes from?

Dana:

So the validation error is a formula that is put in by engineering or dev to make sure that we are not going to have any issues if we transmit this to the state. If the state comes back, if we try to transmit this without, it just had a zero here, it would get kicked back. And it would tell us that the state or the locals was higher than the state.

Ricky:

Gotcha. Okay.

Dana:

So this is just making sure that everything is all trued up to where it should be, where this is not going to come up with an error.

Ricky:

Makes sense. And what a beautiful thing.

Dana:

What a nice thing.

James:

Yeah. So is the customer going to come back and say, "Look, I was only paying $400 before, now I'm paying a thousand. What the hell? What is going on?"

Dana:

No, because they approved $1,000. They've told it that it reflected $1,000.

James:

Oh okay, that was on the liability summary. Okay.

Dana:

Yeah. They've told us they approved. They had told us they've collected this. We're just remitting it. So now that I've put in the same amount of taxable up here in my taxable sales for the state, I can scroll up here and now it changes my state tax or my total sales to my taxable amount, because they didn't give us anything else. And now, it'll calculate my total vendors discount based off of my 10,088, and I'm all done.

Dana:

If this one had prepayments, here's my prepayment entries that would flow into the prepayment and the prior payment here, and it would automatically populate on my return. Good for Georgia?

Ricky:

Yep.

Dana:

Okay.

James:

So there's a field for prepayment, but they didn't prepay? Was there a reason why they wouldn't prepay?

Dana:

Yeah, because everybody has to reach an economic threshold before the state says, "Hey, you need to prepay." These guys are only collecting tax of $1,000 a month.

James:

Right. It's just not high enough.

Dana:

Right.

James:

Okay.

Dana:

At Georgia, it's usually the same amount every month. So it was just an in and an out here. Could be $10,000 as a prepayment and another $10,000 here.

Dana:

So their prepayment could be $10,000 every single month.

Ricky:

So I'm guessing then, since it's the same every month, they probably base it on last year's annual values.

Dana:

Correct. Right. And it changes, April 1 is when the new prepayment takes effect.

Ricky:

That's weird. That's kind of like, maybe they're comparing values from income tax and sales tax at the same time, and then... I don't know.

Dana:

There's a formula for it. We can calculate it too, to see if the state's on target.

Ricky:

How about that.

James:

Or it's just April Fool's Day.

Dana:

Maybe.

Ricky:

Yeah, if I got a bill that made me start prepaying and the amount was a lot, I would sure hope it was a joke.

Dana:

If this had a one up here, it would have to be cleared. And the zero here would have showed my validation error before I added this.

Ricky:

I didn't know that [crosstalk 01:36:30] before.

Dana:

So, my validation errors will show up here as well, and then once they're cleared, once they're fixed, they'll go away.

Ricky:

So it gives you a code there to the left, it tells you a little bit.

James:

[crosstalk 01:36:42]

Dana:

Yeah. It'll give you a detail and a little description.

Ricky:

My God, that's beautiful.

Dana:

It will not transmit if you have elevation errors until you clear these. So if this was a validation error, so Colorado sometimes has validation errors that you have to go in and manually clear. If you wanted to maybe clear it, you would hit edit all, this button up here, and then you could come through and you could put whatever. You can put zero. Zero is what clears it. And then uncheck it, it does a recalculation, and then you're done.

Dana:

There is a handy new feature in here, I forgot to mention, that there's a calculator in here, which you could do calculations in these fields themselves. I don't use this calculator. I prefer to use my trusty little, I mean, it's no different, but I'd prefer to have it here, to have the history on my calculator here versus just using a calculator within a field. And this is fairly new, I think this is two to three months in.

Ricky:

And speaking of calculators or calculation, triggered me to ask you a question I thought about earlier, but forgot, is in RC, is there a button to recalculate the transactions like there is now in AvaTax?

Dana:

Not yet.

Ricky:

I know we can recalculate or rebuild returns, which is great, we have this calculator, but we don't quite yet have that functionality that's in the UI in [crosstalk 00:08:23]-

Dana:

Edit transactions is coming, and I believe it's in the next print.

Ricky:

So if we got it, like somebody doing out of Harbor and MRA and they needed to fix a tax type mismatch or something, they would have to re-import with a process code of three, after doing whatever change needs to be made, they can't just, like in AvaTax, do that?

Dana:

Right.

Ricky:

Okay. Any ETA on that improvement?

Dana:

I think it's the next print, which should be the end of the month.

Ricky:

Awesome.

Dana:

I believe, but I know that it's out there.

Ricky:

I'll just assume Q4 because I know how everything goes.

Dana:

Maybe at the beginning of Q3. You're like, maybe Q4.

Dana:

Kentucky. Why did... This one did not auto build because the gross amount does not match what their liability said, which we know that-

Ricky:

Yeah. Same old problem for these guys, huh?

Dana:

Yep. We know the issue on this one. So this one I'd scroll down, I don't see anything red, nothing's standing out, there's no validation issues, there's no note for me to look at. This return's done.

Ricky:

Yeah, because the gross automatically pops in there, right? Based on the tax amount, so you literally don't do anything, you just confirm this [there, bam 00:01:40:09].

Dana:

Yep, done. Questions?

Ricky:

No.

Steve:

I think I'm starting to understand just your process. Obviously, you've been doing this for a long time, so you can glance at the prep details and the notes, but just blow that and kind of know where to go.

Dana:

Yep. This is so handy since we moved over to RC, having the prep details. Just knowing your gross, your taxable amounts, and if there's any adjustments, if you click into the other adjustments here, this will take you straight over and give you the breakdown of what those adjustments are. There aren't any, so nothing's going to come up. But if I had litter tax in Washington and litter tax was already called out as an adjustment, and I can see the dollar amount in here, but I don't know what it is, I can click other adjustments, it'll tell me it's litter tax, I can go to the return, and I can confirm that the litter tax amount that was put in the return is correct, close my adjustments, and I'm done.

Ricky:

Excellent.

Dana:

Very handy. And then the return details itself, if I'm on the website, it tells me everything that I need to know. It does not have the credentials in here because those are confidential. Obviously, it's on the other page, but we just don't put it on over here.

Dana:

So this one's ready for filing.

Ricky:

Yeah. I think just a general thought here is that I think they hit it out of the park with the design of the filing piece of returns console. I mean, it's really nice.

Dana:

I like it. It's clean looking.

Ricky:

It gives you everything you need at a glance, at your fingertips. There's not a whole lot that you need to do manually. You just got to think through it and focus on logic, and that's simplifying things.

Dana:

Right. Even for the more complex returns, it's still easier to do than it was in years past.

Ricky:

I'm impressed, honestly, with it. I wouldn't resist filing returns based on how beautiful and easy-

Dana:

Ricky's coming over.

Ricky:

My prior managers wanted me to file returns and they asked me several times and I always found an excuse.

Dana:

Here comes Ricky, watch out.

Ricky:

Because of workflow, but I mean, it looks nice. User-friendly.

James:

Don't drink the Koolaid, Ricky.

Ricky:

I'm in a different department now, so they'll never ask me to do that, but it's funny how-

Dana:

Now you just have to [inaudible 01:43:21] on it.

James:

...suddenly how your past position [inaudible 01:43:23] comes back from time to time. I literally just got an email from [Garren 00:01:43:30], basically it's the same situation. It originated from PS and Hayward and then went to Vicky, and Vicky, Garren, and Garren sent it to me.

Ricky:

Welcome back, James. Welcome back to Texas.

James:

Exactly.

Steve:

I heard that the MRS people will actually come in with a duffle bag and stuff you in it, and take them to their lair and make you prep the return. That's what I heard.

Ricky:

I believe it. I believe it. It might be a little overboard, but I know when filing cycles come around, it's all hands on deck, right? Got to get some work [crosstalk 01:44:19].

Steve:

But if you see a picture of Dana's office, back behind, you can see some duffle bags. Those are the ones he uses.

Dana:

I have one, Ricky size.

Ricky:

Don't worry about them. Those aren't hands trying to protrude through the leather. It's a new type of bag.

Dana:

Oh my gosh. You can't do duffle bags, plastic bags. Have you guys watched Dexter? I just finished the season.

Ricky:

I have, yeah.

Steve:

My cat's named Dexter, by the way. For that reason.

Dana:

So you guys are talking about stuffing people, I think this is not good. Let's not go there.

James:

True to form.

Dana:

So this one, anybody want to take a stab at?

Ricky:

Tennessee.

Dana:

Tennessee.

Steve:

I think county first.

Dana:

You went county first?

Steve:

Are they counties first?

Dana:

This is state. So here we have our gross, we have our youth tax. Here's our sales tax, so it starts with our gross, it comes down to, this is our state tax amount. Now remember, Tennessee has a state rate, and then they have the single article tax that could be an additional 2.75% for anything that is zero to $1,600.

Ricky:

Yep. And that's where those validation errors come in. That's really right off the tap, our first red flag.

Dana:

Yep.

Ricky:

Not that it means what it means to you, to me because I don't really understand it to the end, but that's the red flag that anybody should be looking at, right? Pull this up, you go from top to bottom from the right hand pane, and that should give you a really good idea of what's going on.

Dana:

So this one, these guys, I don't believe have single article tax. So with these guys, I've got to take a look at their website, just for this month because I haven't gone out there before to see, and hopefully I can get in. That thing is showing... Nothing came in as a single article tax, so my single article tax would populate here. And from what I'm seeing is that this came through, it had calculated 1,041, our gross up here for state is 1,041. This 1,041 here comes from the locals. This is 2.75%. This is telling me that it does that fall between the local rate of 1.5 and 2.75%. But this is 2.75%. So I think that there's a rounding issue in here, and that there's really nothing wrong with this return.

Ricky:

The core issue is still the gross sales being omitted, right? If we weren't back [inaudible 01:47:41] into the gross sales, then that rounding wouldn't be an issue. Is that what I'm...

Dana:

Right. Because the other thing too, is that here's 1,041, so my 1,041 came down from the state level, I had no adjustments, here's 1,041, my local still is 1,041. Everything on this return is 1,041, except it's telling me that my local rates is not that. If I take 1,041 on my calculator... Come over here... Multiply that by 2.75, it's $28.62. So this is rounding. So if I take $29, divide that by his 0.0275, it changes my taxable amount.

Ricky:

Yeah.

Dana:

So since this is rounding, I could potentially just do... So what was this, 29... If I wanted that, times 0.0275, I have $28. So if I change this to $28 and let it do its little thingy, now I have to change this to $28.

Steve:

But it's not an editable field though.

Dana:

Oh, but it's not, but it's going to have to be.

Steve:

Oh, you won't edit.

Dana:

Because that's the only way the math works, right?

Steve:

Right, right.

Dana:

So, this times the rate did not give me the $29 that was showing here. So the only thing that I can do is edit my data here and do this at $28.

Ricky:

I was going to ask if you-

Steve:

And you clicked "edit all"

Dana:

Edit all.

Steve:

Oh, okay. So that supersedes the blue field.

Dana:

Right.

Ricky:

I was going to ask Dana, if you could've approached this from the gross tax perspective and maybe upped or decrease the gross by a dollar?

Dana:

We could.

Ricky:

Because then that would change the tax, right? We have to file the amount of tax that they approved.

Dana:

Right. So this does give me a dollar variance. So core would have to adjust this in a different way, so we could take it that approach and do a dollar, and the problem is it's that it's sitting that half mark, where it's going to end up rounding up to 102. If I take that, divide it by 0.0975, 7% for my state, 2.75 for my local, so the system came up with 1,041.

James:

But 28.62, theoretically, that should be a valid round up to 29.

Steve:

Well, it might go beyond four decimal places though.

Dana:

So since this is 101, if we want to have a 50 cent variance, since this is 100 and 150, we could take it at 102, divide it by 0.975 and make it 1,046.

James:

[crosstalk 01:51:26] you the 29.

Dana:

So we can try 1,046, and I can get rid of those validations here, and while I'm here, I'll make this 1,046. And this is where you... Whoa, where are you going? I'm not touching my mouse, I swear. Okay, stop, stop. Really stop.

James:

Mine did that when I was presenting in PowerPoint.

Dana:

Just took off on you?

James:

Yeah.

Dana:

So if I take 1,046, so right now, I'm square at 1,046, but this does not like it. So if I take 1,046 times 0.0275, I'm at 28.76. So again, I'm at a rounding issue.

James:

Yeah. For whatever reason, it doesn't like the rounding.

Dana:

Right. So 1,054 would give me the $29, but if I took 1,054, 1,054 divided by 0.07... Whoops. Yeah, 1,054 times 0.07, $73.78. 1,054 times 0.0275, 28.98. So I could change it to 1,054... Oh, stop.

Steve:

How much play do you have in terms of additional funds that would be pulled from a user's account? Because he's... Well, I guess he didn't approve anything except the 101.50, right? But the return would pull 103. Do you just figure it next month if it's over, then you give them back money or?

Dana:

Yep. Plus or minus a dollar, whatever we remit.

Steve:

Yeah. Well, I mean, I doubt that a company that makes as much money is worried about a dollar, but you know, unless it's a dollar spread over a thousand accounts than it starts getting dangerous.

Dana:

And neither is the state.

Steve:

Right.

Dana:

Neither is the state.

Steve:

Okay.

Dana:

So right now, no matter which way we go, we're still playing with a dollar. And it's just because this is one of those returns that rounds.

Steve:

Right.

Steve:

So that seems to come into play regularly, the whole rounding issue that people need to keep an eye on in terms of how they prep and why issues might arise, it could be as simple as rounding.

Dana:

Right.

Steve:

Wow.

Dana:

As simple as a rounding.

Steve:

Note, watch your rounding.

Dana:

So these guys are actually, this is $1.50 actually in tax. It's a difference of remittance of a dollar. Ricky, still with me? I think Ricky left us.

Ricky:

No, I'm still here, but I was daydreaming about food.

Steve:

My son is making homemade bread and it's just driving me crazy.

Dana:

Oh, what kind of bread?

Steve:

Sourdough. Homemade sourdough.

Dana:

Oh, the best.

Steve:

My god. I just want to eat everything in this room. The dogs kind of giving me dirty looks, like, "Don't even think about it."

Ricky:

You better drop some on the ground. The look he's giving you.

Dana:

So, we can either be plus a dollar or minus a dollar. It's hard for us to get to this 101.50.

James:

Well, I think the takeaway here is that the first way that you did it just was a lot quicker rather than having to sit there and fuss with the math over and over again to get to what's [crosstalk 01:56:41]-

Dana:

But if I left it at that and do an edit... Because no matter what I'm looking at, I'm looking at a dollar. Which means I have to go down here and edit this down to 28. And I would rather do it this way so their tax here is the 50 cents, we rounded down 50 cents versus going up $1.50.

Steve:

Okay. Now, you have a little eye icon next to taxable under the return. So what does that mean?

Dana:

Nothing.

Ricky:

It just threw it. Just so you know it's there.

Dana:

Was it not there before?

Steve:

I don't think it was. But, but either way, I mean, it should mean something.

Dana:

It's information that it does not give you any information on.

Ricky:

Let me inform you that I cannot inform you.

Dana:

I can hover on it, I click on it, it does nothing.

Steve:

Yeah, it doesn't show anything.

Dana:

No. So I'm going to leave the return this way and then just, ready for filing. And if I had any validation errors, it would show up here as well as still down here. So this return will go through.

Ricky:

And Dana, I'm pretty sure I understand this, but I just want to confirm that for MRA, you're still doing this, right? This is the actual filing piece? So MRA will put it... I thought the MRA status that they would put it for you guys in would be ready for filing, but that's what you're putting the status in. So their's would be ready for, or approved, I guess? Approved for filing? Yeah? I think that's it.

Dana:

If I do ready for filing, then it goes through. It's the same for everybody. Everybody would be ready for filing.

Ricky:

So when you pick up... Oh, ready for prep.

Dana:

Ready for prep.

Ricky:

That's right. So when MRA [inaudible 01:59:01] goes in and they approve all these returns, they're putting the status as ready for prep?

Steve:

Right.

Dana:

Yes.

Steve:

Or auto build. I mean, they just auto builder, they go to ready for prep.

Dana:

It originally says pending approval, and then it's approved, which once it's approved, then it goes to ready for prep.

Ricky:

Okay. That makes sense.

James:

Or it gets auto build.

Dana:

Or it goes to auto build and goes automatically to ready for filing.

Ricky:

Yep. But from MRA, then it's just to prove them, just to put them into ready for prep.

Dana:

So, you know those occasional returns where we have an occasional return set up, but the client has told us not to file it if it's a zero return?

Ricky:

Mm-hmm (affirmative).

Dana:

I am trying to get more people to use this no filing needed versus getting rid of the filing calendar or leaving it blank, or just leaving it sitting there-

PART 4 OF 5 ENDS [02:00:04]

Dana:

... does the filing calendar or leaving it blank or just leaving it sitting there. At least it's been acknowledged that it's been seen and the tax liability or the gross is zero, and then we can put it no need for filing.

Ricky:

Yeah.

James:

Yeah. That would be better than... because otherwise you're getting rid of information and it might be important to know about the history of that.

Dana:

Right. I think there's an inconsistency between PRS and the way Core does it, they will leave it ready for filing, which to me that just shows up as a task that still needs to be acknowledged. I think there needs to be some consistency there and it just needs to be no filing needed, and move on. Washington.

James:

ewe.

Dana:

ewe. I like Washington. So when I worked at Nintendo Maya, Washington return took me a half a day to do, said I'd have to calculate the BNO. And if it was an end of year, it would take an entire day to do, because I'd have to do the apportionments, service apportionments. So these returns are fun.

James:

You're well versed in them.

Dana:

So this return, of course they did not know gross. So their BNO, even though there's no gross, they did not pass any wholesaling or nontaxable sales or retailing. Everything's going to go to retailing because of their taxable amount, so this line here should always match this line here. So 19 and 28 always have to equally each other.

Dana:

$24 and 75 cents is their retailing BNO. And it should be wiped off by a small business credit, because the dollar amount is so small, which should in [inaudible 02:02:26] they end up not paying BNO, and all they owe is their sales tax liability. They've given us $492 and 80 cents, we're remitting $492 and 78 cents. And there is a table on the Washington State website for the small business credit, and it'll show you the tiers because as you start doing more business in here, either if the tax gets wiped off completely, or it's based on a portion of your total sales and that amount could be a certain percentage of your total sales that gets deducted out. And VFE does do the back calculations to include this small business credit.

Dana:

Line 28, is my state tax. And then here's some deductions, other classifications. Here are some credits. Here's my small business credit, $24 and 75 cents, which showed up here on the return as a deduction. So I'm not paying any BNO, reporting it but not paying anything. And then all of these lines here, so if I had wholesaling, this is line 11, which of course those are deductions, which corresponds to line 11 of the BNO. So all of these line numbers here have a deduction section on next pages, and they all correspond to those numbers.

Dana:

Those are the deductions here. And then once you get past the deductions, then you have the local tax. You could see they sold to Tacoma and Spokane Valley, it has the rates in here. Sometimes if it's a quarterly or an annual return, it'll have to call Melissa twice with the old rate and the new rate. So if the customer was collecting at the old and the new rate within the year if it's an annual return, or quarterly return, then they can put it to the correct line. That's a note for accounting firms, should they see two of the same local locations on here.

James:

Got it.

Ricky:

Yeah. I also came across in the past, the instance where I actually had to reach out to the state of California to have them give me a form that had...

Dana:

The old rates?

Ricky:

Yeah. That took into account the midyear rate change or mid period rate change.

Dana:

So we will list them on here, if you see multiple locations on here. That's it for Washington

Dana:

Per simple.

James:

I thought it was supposed to be a lot harder.

Dana:

If they had more sales in Washington-

James:

Yeah. I can imagine.

Dana:

... and we were charging a retail rate or a BNO rate, you would see it show up on the other adjustments here.

James:

Okay.

Dana:

So we would see a BNO and then we would see the small business credit for $24 betting each other out. The downstream dependencies as four of the local BNOs, you have Kent [inaudible 00:06:27], Bainbridge, Seattle, those all have local BNOs, that usually do on a quarterly basis, so that local dependency that you saw, it's just moving those numbers down to the local BNOs returns if there was a quarterly.

Ricky:

And there company group, it says AMRA, is that just Avalara Manage Returns for Accountants?

Dana:

Yep.

Ricky:

Okay.

Dana:

Yeah. And not everybody has access to this view right now. So not everybody has access to this company group. There's multiple company groups in here, so here's Acore, Here's PRS, and production ready companies is everybody.

Ricky:

Gotcha.

Dana:

There's just-

James:

I have the AMRA.

Dana:

You should. Because I've requested that everybody on my team and you are a part of my team when I say part of MRA, because you should be able to see the exact same things that Aida and Jessica can see.

Ricky:

Dana D. are you aware of any playgrounds in returns console production.

Dana:

No. Nope. Sandbox should be released. Keep hearing that it's going to be released or that it is released. And I don't have access to Sandbox yet.

Ricky:

Yeah. I keep hearing the same thing.

James:

Same here.

Ricky:

We talked earlier Dana, about the training coming up and I want to build the training based on the UI that you're in now and not returns console QA, so that's why I was trying to find a playground. Supposedly, well, at least I've-

James:

What we want is something in between. We want not necessarily this UI, because this is production, obviously, but at the same time we want the full functionality, not QA.

Dana:

Right. Right. So I'll tell you something that I learned yesterday, which concerns me when they do a release or an update to the returns console that does not include the [inaudible 02:09:00] level farm which is MRA, they release it to RC, but then they also have to release it or install it, whatever you want to call it to the MRA side, the multilevel view. They have to do those changes-

Ricky:

Separately.

Dana:

... to different... Yeah. Which concerns me because we all make mistakes and you may put it into production, but that doesn't mean that you've put it into all production sites.

Ricky:

Yeah. Yeah.

Dana:

So I didn't learn that until yesterday, which concerns me, because I have a feeling that MRA is going to be missing.

Ricky:

Eventually.

Dana:

It'll be missing some stuff.

Ricky:

Some day, one day, hopefully not soon or frequently, but it's a valid concern, it'll happen.

Dana:

I believe that it will. Minnesota. Well, this one looks fun.

Ricky:

Let's see what we got.

Dana:

We've got that much tax, but we're recording more tax.

Ricky:

Minnesota.

Dana:

Let's not report more tax than what they've given us. So we've got this here, this comes in at 12. Where's my calculator? And I don't know what local they've charged until I scroll down, so we've got 179580, so that's fair. 12346 minus 13244.28. So I actually... Oh, whoops, I don't know quite what that number. 12346 minus 13244.28. So $898 and 28 cents needs to be reallocated. So I'm going to scroll down and see if it's... Or if it's that.

Dana:

So here they put it in Marshall and Transit for Lyon County. One of these is wrong.

Ricky:

Okay. Looks like foreign population issue?

Dana:

It depends on what they passed us, because if they pass this line and they passed us Marshall, sales tax, both of these are... this is a County than a City, so this one I'm going to have to pull the detail on, to find out where this is supposed to go. Too much.

Ricky:

Get to look at the line level transaction detail for the jurisdiction.

Dana:

Yep. And I'm going to see. This is where the problem comes in, where we don't have reports, because if I go over to CUP, I'm not going to have everything. So we'll try to run a report here. Lets see. This is [crosstalk 00:12:31].

James:

They're saying, it's going to take 10 minutes for the report to run.

Dana:

Well, yes and no. It's going to take 10 minutes for data to catch up to the reports.

James:

Oh, okay.

Ricky:

At least it's way faster than CUP. It's every hour, if you're lucky.

Dana:

For a Minnesota, company was [redacted]... I'd like to cut this meeting five minutes short, so I can run to the restroom and get ready for my next call, but the customer [crosstalk 02:13:12] eyes are floating.

James:

My dog's harassing me is for a walk.

Dana:

The report section in CUP, this button comes in as a default, as include locked transactions only it's unchecked. So now that the system... now that we're locked, we need to make sure that we've got all the locked transactions. CUP makes you click this button, which I'm asking for it to un-click the button. Because I think it's more important for the accounting firms to do the reconciliations at the beginning of the month. And I had an accountant this month who kept running these reports and they weren't tying to her summary because she was including lock transactions, so nothing was coming up because nothing was locked yet, it wasn't the 10th.

Ricky:

Yeah.

Dana:

So I'm asking for this to be not the default, which we just have to remember to make sure that it's checked all the time. I wish they could do it by view, but they can't. External view versus internal view.

Ricky:

Yeah. Then solve it and be a best case for both.

James:

So it's one County that's wrong.

Dana:

So it goes to the city here, but this one it's two different zips. This is more finite than-

Ricky:

The last four.

Dana:

So I could potentially just do this. I didn't know I could do calculations here, I can't. I can change the numbers though. That's interesting that I can do this in a report.

Ricky:

Mm-hmm (affirmative).

Dana:

Well execute again and just export it.

James:

So in terms of the data here, it's showing Marshall city, but it's not showing the Lynn County transit.

Dana:

Right. And it's the same rate. If the state requires Marshall City and the transit to go together, then I've got a problem. It's coming up. So let me go back to my return. And I could probably cheat and see what happened with what we did last month and leave... So this one was [inaudible 02:16:38] file, I'm going to see what we did last month. Consistency.

James:

My bet is that it all went into Marshall City.

Dana:

That's your bet.

James:

Yep. We'll see what happens.

Dana:

Scroll, scroll, scroll.

James:

No?

Dana:

They did Lion and they did Marshall.

James:

So what'd they do to...

Dana:

So 142, they did not make any changes to the return. And last month it worked.

Ricky:

Yeah. It was in balance last month though. I mean the return values like fields are the same, but the values were in alignment last month and there's no change, nothing's red. So it worked last month fine.

Dana:

So since they did both of these at the same... They did Lion and Marshall, I'm going to take the total tax rate back into it and then evenly split it up between those three.

James:

Yeah. Makes sense.

Dana:

That's what I'm going to do.

Dana:

So my rate is 7.375. Here's my report. Total tax amount here. I'm going to sum that, equals this, divided by 0.07375. 17583 is what I'm going to put over there. This one's last month's, right?

James:

Yeah. That's last month's.

Dana:

Yeah. Its last month's. Especially since they don't give us anything else, they're reporting the tax, it comes in as splits, so we're going to split it.

Ricky:

Is return console affected by standard, the normal usage spikes that we get that affects AvaTax, does that also affect RC?

Dana:

Say that again.

Ricky:

You know how between the 5th and the 10th, you can sometimes literally not even complete an import, because usage has spiked the demand on the server.

Dana:

Oh yeah.

Ricky:

Are you guys seeing any type of issues with the server that RC is on? I mean, I know that their usage not actually goes down after the 10th, which is when you guys are hearing RC, but I'm just wondering if there's any performance issues [crosstalk 02:19:52].

Dana:

I still that-

Ricky:

... in load a little slow sometimes it seems like and it's a low usage day, I would think. So that's what made me think, okay, if for some reason there was a very high spike in usage between the 11th and 20th, if that would increase the time that it's taking to go to some of these screens in RC.

Dana:

I think that there's a lot of people on here and since we're on the web, I think it's still loads a little slow. I think it's just the amount of people that are in here and it's not only just sales use in here anymore, you've got lodging in here, you've got trust file in here. Everybody's in here.

Ricky:

It's all of them.

Dana:

Yeah. So until they can work on that speed and they do have different servers, they've added different servers, when we first started this, it took a long time for things to load, so they did add more servers around the country.

Ricky:

Yeah. I saw that. And really, I think it's more servers around the world.

Dana:

Around the world to keep us, keep us cruising. So what is going on here? 12436, 875, these are each at a half a percent. Where are my numbers? I've lost them. So this does come out. These are the numbers, they're pretty darn close. 179631 times 0.005, 898. So 13... what plus this times 0.6875 equals this. Times 0.005 equals this. Times 0.005 and then total that. Oops. Just doing math on the spreadsheet. 14. Send this 375. It's missing one, that's why. This turns out to be 7875. So this becomes 168181.33. Same as this 168181.33. That's 168181.33. Copy paste. Come on. Come on.

Dana:

All I did was take the combined rate and divide it by the tax. I'm going to get rid of my sense there. And that should get rid of my deductions there to get rid of the negative 11,000.

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