This is useful when the tax depends upon the usage, not the identity or purchase location, of the products. Tax rates are maintainable at all times, and may be posted well in advance of their actual effective date. Associated with each tax is the jurisdiction in which it is collected, the products to which it applies, and the certificate types which exempt it.
Several reports are available on a periodic basis for tax reporting and analysis.
These reports are compiled from files produced by the invoicing system. Product receipts tax report, which identifies all purchases and exchange receipts in a specific month in which title transfer occurs within an individual state jurisdiction. Sales tax report, which identifies all taxable and exempt sale and exchange delivery transactions in a specific month in order of tax code. Tax source summary report, which summarizes each tax code based on the source and status of the transaction. This report is commonly used for estimating tax deposits.