How Taxnexus Handles Transactions

How Taxnexus Handles Transactions

Taxnexus keeps customer transactions in a financial accounting database organized in a general ledger (GL).

Data is stored the GL using double-entry bookkeeping following the formal Accounting Rule.

Taxnexus uses software objects modeled after traditional business documents and workflow processes. Taxnexus objects are organized into transactional, workflow, and ephemeral categories.

  • Transactional objects are recorded in the GL and audit the basis for revenue and expenses.
  • Workflow objects manage a business process, as well as spawn and manage the flow of transactional objects.
  • Ephemeral objects present information, make calculations and spawn workflow and transactional objects. Ephemeral objects may be discarded in the course of a workflow.

Taxnexus uses North American names for business objects. Here are some of the core objects.

  • Quote — The Taxnexus quote is an ephemeral object that presents pricing information to a customer. The quote includes all discounting information and related transformations. When a quote is approved it generates an order.
  • Order — A Taxnexus order is workflow object that produces purchase orders, invoices, and cash receipts.
  • Invoice — The Taxnexus invoice is also known as a sales order, transaction, order or receipt in other systems. A Taxnexus invoice is a transactional object that records the sale, including the tax location, and is booked into the GL as revenue.
  • Purchase Order — A Taxnexus PO is a transactional object that records any type of purchase. The PO is booked in the GL as an operating expense or COGS.
  • Cash Receipt — The Taxnexus cash receipt is a transactional object that represents all forms of cash transfers between the business’ cash accounts, vendors and customers.

Each of these objects have item, tax transaction and tabulation sub objects.

  • Items — A list of Item records are associated with all transactional objects. Order, Invoice and PO item objects must all be tagged with a Taxnexus Code (see below). In the case of a cash receipt, the items are a map of transaction objects to which the cash was applied.
  • Tax Transactions — On a per-item basis, a list of all the tax transactions generated by a tax rating event on an object.
  • Total Tabulations — The Total sub object contains a list of totals and subtotals calculated for the entire object. In addition, a tabulated list of tax types are stored for detailed bill presentment.