Patent ID: 7386495
Filing Date: 2008-06-10
Classification: G06Q

Abstract:
1. A method for assigning taxability codes to purchases and processing tax invoices, comprising the steps of: receiving from a user, identified by company indicia to one of a plurality of company groups including at least a first company group, a second company group, and a third company group, a purchase requisition selectively for at least one of a service and commodity line-item object; responsive to said indicia and said line-item object, determining in a front end process, a tax code and tax location based on defined business rules with said tax code selectively representing a line item as being one of a plurality of taxable, non-taxable, and undetermined tax codes and said tax location code selectively representing a default company location code and a ship-to location code for said line item; feeding said tax code and said tax location code to a back end process; and in said back end process, converting said tax code and tax location to a tax jurisdiction code with associated tax rate; and in said back end process, preparing a purchase order identified to said one of said plurality of company groups for transmittal to a supplier of said object; processing said purchase requisition for a user identified by company code to said first company group according to a first scenario in which a user creating a requisition selects taxability by selecting said tax code and said tax location code; processing said purchase requisition for a users identified by company code to said second company group according to a second scenario in which taxability is determined based on commodity purchased; processing said purchase requisitions for a user identified by company code to said third company group according to a third scenario in which taxability is determined based on commodity purchased and purchasing ship-to location; processing a first invoice submitted pursuant to said first scenario by paying said first invoice as presented when said purchase requisition contains a non-taxable code and said first invoice invoices no tax and when said purchase requisition contains a taxable code and said first invoice invoices tax; by short paying said first invoice when said purchase requisition contains a non-taxable code and said first invoice invoices tax; and by paying said first invoice as presented and crediting a tax account for tax when said purchase requisition contains a taxable code and said first invoice invoices no tax; processing a second invoice submitted pursuant to said second scenario by paying said second invoice as presented when said purchase requisition contains a non-taxable code and said second invoice invoices no tax, when said purchase requisition contains a taxable code and said second invoice invoices tax, and when said purchase requisition contains a taxable code and said second invoice invoices no tax; by short paying said second invoice when said purchase requisition contains a non-taxable code and said second invoice invoices tax and when said purchase requisition contains a taxable code at a first tax rate and said second invoice invoices tax a tax rate more than said first tax rate; and by paying said second invoice as presented and crediting a tax account for tax when said purchase requisition contains a taxable code at a second tax rate and said second invoice invoices tax at a tax rate less than said second tax rate; and processing a third invoice submitted pursuant to said third scenario by paying said third invoice as presented when said purchase requisition contains a non-taxable code and said third invoice invoices no tax, and when said purchase requisition contains a taxable code and said third invoice invoices tax; by short paying said third invoice when said purchase requisition contains a non-taxable code and said third invoice invoices tax and when said purchase requisition contains a taxable code at a first tax rate and said third invoice invoices tax a tax rate more than said first tax rate; by paying said third invoice as presented when said purchase requisition contains a taxable code at a second tax rate and said third invoice invoices tax at a tax rate within tolerance of said second tax rate; by paying said third invoice as presented and crediting a tax account when said purchase requisition contains a taxable code and said third invoice invoices no tax.