September 25, 1997

MEMORANDUM No. NCAS-98-0004

TO:             Fiscal Officers/Accounts Payable Supervisors

FROM:        Chuck Cooper
                  Assistant State Controller

SUBJECT:  Changes in NCAS to sales tax reporting

Tax Computation Procedural Changes

The Office of the State Controller (OSC) has recently completed changes in the NCAS for sales tax reporting. These changes were required to accommodate multiple tax rates mandated by legislation as well as enhancing agency tax reporting.

Sales tax is now computed separately for each Accounts Payable (AP) invoice line. The tax rate applied is determined by the tax code entry on screen IWS-1T in the mini-chart indicator field. A default tax code (typically 600, representing 6 percent) has been set up for each agency by the OSC. Tax codes and rates have been established for all agencies on a statewide basis and will be maintained by the OSC. The following table presents the new statewide tax codes and rates.
 
 
 

Column 1 shows the total tax rate, column 2 is the state tax rate, column 3 is the county tax rate and column 4 is the rate for all other tax. These codes and rates may also be viewed online on the USE TAX AUTHORITIES (TAL) screen. A mini-chart indicator for each use tax code has also been set up for agency use and will be maintained by OSC. Please contact the OSC help desk if additional tax rates are needed or a more detailed explanation of the process is required.

Report Changes

Four reports are included in the C-U-AP-SALES-TAX-BY-COUNTY -RUN series. Three of the reports provide information about AP payments that include the 2% county sales tax. The fourth report lists all AP payments with sales tax but no 2 percent county tax. These reports may be run for any time period, biweekly, monthly, or quarterly to correspond with your agencys reporting requirements. The reports are summarized below.

SALTAXRT The new SALES TAX BY COUNTY REPORT lists all AP payments which include the 2% county tax. This report provides detail data that is summarized in the following two reports.

SALTAXGT The GRAND TOTAL PAID TO REVENUE AND COUNTY report provides a summary by county of all AP payments that include the 2 percent county tax. It can be used to file the Form E-585E Claim for Refund of County Sales and Use Taxes.

SALTAXCY The TOTAL SALES TAX PAID TO REVENUE BY COUNTY report is a summary of AP payments made to out of state vendors. The report should be used as a backup to the Sales Tax Payable - Account Analysis report (C-U-AP-SALES-TAX-FC-LIST-RUN) when remitting Sales tax collected from out of state vendors. The report can be used to complete form E-536 Schedule of County sales and Use tax. The Total 2% amounts by county should be the amounts being transferred, form E-536. The total of the Total Tax column, plus any reconciling amounts should agree to the amount of the check being sent. This SALTAXCY report does not include any amounts collected from the sale of goods, which should also be tracked by county. For these collections the agency fills out the form in the coupon book Form E-500C that is sent out by revenue. This form also has a place for purchases. Remember if you put purchases here for the county, do not report them on form E-536.

SALTAXER The ALL OTHER SALES TAX REPORT lists all AP payments that do not have the 2 percent county tax.

The C-U-AP-SALES-TAX-BY-COUNTY -RUN reports are based strictly on AP documents that have been paid during the date range specified in the report. Budgetary Control (BC) entries, and changes made to AP documents that were paid outside the date range selected, will not show up on the sales tax by county report. Any invoices with a use tax code but no county code designation will appear at the top of the appropriate report. These must be analyzed to insure there are no errors.

If you have any questions about these reports, please call Rick Pieringer at 981-5428 or NCAS Client Support at 875-HELP .

CHC/rp