Counterpoint is set to recalculate taxes -- how to handle order?

Article Number: 334 | Rating: Unrated | Last Updated: Fri, Feb 22, 2013 at 10:54 AM

Purpose:

To explain how to process an order when the import process recalculates sales tax.

Solution:

If you configure the Ecommerce Control file's Order tab to recalculate prices/taxes during import, Counterpoint computes the initial amount due based upon the prices/taxes that Counterpoint determines, not the amounts that NRO calculates. The tax will recalculate based upon the tax code in the Counterpoint customer record.

The example below assumes that you are not recording a tax amount from NRO. If you choose to have NRO to calculate the tax amount, and have the prices be recalculated by Counterpoint, then you will have to do a tax override when releasing the order to correct the tax for the order.

Example:

For simplicity, assume a flat 10% tax and ignore shipping.
Furthermore, assume that you are recomputing both prices and taxes during import.
You order some items on-line. NRO tells you that your order totals are:
- CATERPILLAR = $62
- DRAGONFLY = $38
- Subtotal = $100
- Tax = $10
You pay by credit card. NRO will authorize $110 on the card.
During import, Counterpoint adjusts the prices and taxes of the order and assigns them to order/backorder status as indicated below:
- (Order) CATERPILLAR = $58
- (Backorder) DRAGONFLY = $32
- Subtotal = $90
- Tax = $9 ($5.80 on the Order line and $3.20 on the Backorder)
If you elect to reduce the initial deposit for backorders, then Counterpoint will record an initial deposit based on the actual prices recorded i.e., the initial deposit will be for $58 + $5.80 = $63.80