Tire Tax & Scrap Fees

[Art_Mopar]

The state of PA requires us to collect $1.00 tax for every tire sold in addition to the standard sales tax. We also pay a fee to have the old tires removed. How on the ADP system can we collect these fees? I thought about setting up parts kits through SDL but was wondering if there is another way.

[joe r]

Set up a part number for tire dispoal fees (we use TD)and the tire tax (perhaps TT) and put them in their own sources. Then have any sales from those sources post to accounting to whatever journals they want those fees to go. If you stock tires set up an SDL for each number with the tire number and the number you use for the fees.

Joe R

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[This message has been edited by joe r (edited 08-10-2005).]

[This message has been edited by joe r (edited 08-10-2005).]

[Ted@ADP]

You can set this up to automatically charge on parts invoices. You set up a new tax agency in UTA. (Look at RTA to see what is already being used.) You can probably use agency 500. The description will be TIRE LEVY, and the method will be Item.
The tax grouping will be STD or standard. The tax account will be the tire levy liability account. The tax percent will be 0.000. Press enter down to the bottom. Then press NG for Next Group. Save changes, and put in an exception group of 2. Answer Y to add it. The description will be TIRE LEVY again, and the type will be SP. When you drop down to Source, type in your tire source. When you save, you will go back to UTA. Now you can set up your levy. Type the levy liability account as the tax account, with a percent of 99.999. Enter a beginning date before today. But the key will be to type in a Per Part Base Limit (option 11) of your tire levy. Finally, go to UXC (Update Tax Code) and add the new agency to each of your tax codes.