Superhero in red cape says account man fighting the evils of non-integrated systems!!Dear AccountMate Clients,

It’s now over two years since the Wayfair Decision allowed states to make their own definition of “economic nexus” and require sellers to remit sales/use tax for sales into their states—and, unsurprisingly, all 45 states that charge sales tax, plus DC and Puerto Rico, are now scrambling for sales tax revenue.

So, welcome to the wonderful world of dealing with, effectively, 47 different “kingdoms” that each set their own rules for what constitutes “economic nexus” (as low as a single sale to Kansas), what the sales tax rates are for each jurisdiction (state, county, city, transit authorities, and possibly overlapping special purpose districts), whether the tax is based on where-it’s-shipped-to or where-it’s-shipped-from (called destination and origin in sales-tax-speak with California always striving to be the thought-leader and using a hybrid of both) and how the goods are classified by item type (Pop quiz: How is a KIT KAT® bar taxed? Answer: Since it’s more than 50% flour, it depends on the state. Many states have a higher candy rate which would apply, but some of those exclude candy-with-more-than-50%-flour from the candy rate, and some states don’t have a candy rate but have a special rate if sold in a vending machine. No, I’m not making this up…). Finally, the ground is constantly shifting under your feet as those 47 kingdoms are constantly changing their laws and interpretations and they’re not under any obligation to pro-actively notify you. It’s your responsibility to be checking in with them

If all that sounds confusing, and labor intensive, and fraught with the ability to innocently screw things up, when you would be responsible to remit sales tax you didn’t collect from the customers, then you’re getting the picture that business is way tougher now than it was just two years ago!

NexLAN immediately recognized that keeping up with all of above would be more than onerous, so began developing an interface from AccountMate/SQL to a commercial sales tax service and TaxJar immediately stood out for their technical depth and ease of use. It’s no surprise TaxJar is independently rated #1 in the sales tax compliance category.

Thus, more than a year ago, we released our Nex$Tax plug-in—exclusively to direct clients of NexLAN—integrating TaxJar to AccountMate/SQL V10.4 and above—and have numerous clients successfully running the product and enjoying seamless sales tax rate determination, reporting and remittance/filing.

We have complete details on the NexLAN website, but the overview is:

  • Accurate Customer Addresses: Nex$Tax incorporates USPS validation of your customer addresses, including bill-to and ship-to addresses, so that you have “rooftop level accuracy”—and the ability to designate customers as tax-exempt or international, since even those are required to be reported in a sales tax audit.
  • Accurate Item Classification: Nex$Tax includes the ability to assign each of your items to one of hundreds of “item tax categories” so you’re charging the correct rate for the goods you’re selling—even if an item is taxable in one state, but not another. Don’t let this sound too daunting though, as most clients have items only within a handful of categories so we can do a mass update, and TaxJar even provides a handy AI tool to determine the correct tax category.
  • Accurate Sales Tax Rates: Nex$Tax pulls the applicable sales tax rates from TaxJar in real-time for Sales Orders, Sales Quotes, Blanket Sales Orders, Customer Invoices, Sales Returns, Recurring Invoices and RMAs—but, in the event your Internet connection is down, also allows manual assignment.
    • Bonus: Many of our clients have e-commerce sites for online sales and it’s important to get the sales tax rate correct “up front.” We’re happy to chat about integrating your online store and already have this done for Magento-based sites.
  • Accurate Sales Tax Reporting & Remittance: Nex$Tax uploads your invoice data nightly to TaxJar, then their website is used for the subsequent reporting, filing and remittance—and pro-active monitoring of achieving economic nexus in additional states (when you merely “turn on” the additional state and sales tax collection then it automatically works for the new state).

So, if you’re wrestling sales tax issues then we’ve got your solution in hand—and we look forward to chatting as NexLAN is always standing by in the cornfields!


Kevin E. Stroud

September 14-18 Payroll Class—Attend All or Parts Online

AccountMate’s Payroll module offers complete functionality to handle your payroll requirements and we encourage clients to run payroll in-house to save money. Learn what it can do, become confident in using it, and ask questions about how to handle things in your payroll, with AccountMate’s super-knowledgeable trainer Rose Dasig. Hands-on exercises are provided to help you master the functionality.

This class is held once per year and is $1,500 per attendee or $400/session. Get yourself up to speed on Payroll. Or take the class as your first step toward bringing your payroll in-house by January 1. Even longtime AccountMate users learn many new things in this class.

Do you already use Payroll and want to tap into its more powerful features?

Now that the course will be held online, you can sign up for individual sessions instead of the entire class. Here are examples of the processes you can learn:

  • Employer matching and age break options for deduction—both useful for 401(k)
  • Import of time cards from your time clock system
  • Automatic ACH file creation to pay employees via direct deposit
  • Paid leave accrual per hour worked, or per pay period, or annually with “annually” defined as beginning of the calendar year or your fiscal year or even the anniversary of the employee’s hire date

Make time to learn about features you haven’t explored so you can get the most out of your Payroll module. Reach out to us and we’ll send you the details for individual sessions.

October 12-26 Core Modules Training Class—Attend All or Parts Online

Do you have a new employee who needs to learn AccountMate? Or an existing employee who’s taken on new responsibilities where AccountMate knowledge is needed?

I’ve spoken with several attendees of the first online AccountMate Core Product Training class held in June and they enjoyed the convenience and comfort of the online format immensely. The upcoming core training class, scheduled for October 12-26, will be held online, and now offers the option of attending individual sessions. The cost is $2500 for the class per attendee or $300/session, but don’t forget the Lifecycle subscription includes one seat per year.

Reach out to us and we’ll hook you up with course outline and session info, signups, and answers to your questions.

Tech Notes: Benefits of the Return Merchandise Authorization (RA) & Return to Vendor Authorization (RV) Module

This pair of Tech Notes compares using the AR module for customer sales returns vs. the RA module, and the PO module for vendor returns vs. the RV module.

1. Companies engaged in selling products often encounter situations that may result in a customer returning items that they purchased. There are various reasons that the customer may return items. The items may be defective; there may be a mistake in the order; or the customer may simply decide that the items are no longer needed.

The Return Merchandise Authorization (RA) module is specially equipped to track customer returns from the time the customer calls for the authorization to return the product until the item replacement has been sent or a credit has been recorded. Article #1207: Benefits of the Return Merchandise Authorization (RA) Module presents the advantages of using the RA module over using the Accounts Receivable (AR) module to handle customer returns.

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2. There may be times when you must return to the vendor the purchased items because these are defective, you received the wrong item, or the items must be repaired. Though you can use the Purchase Order (PO) module, the Return to Vendor Authorization (RV) module is designed to effectively record and monitor these returns. Article #1197: Benefits of the Return to Vendor Authorization (RV) Module addresses the advantages of using the RV module rather than the PO module to process vendor returns.

Tech Note: Authorized Reference GL Account IDs for Posting AP Invoices

AccountMate provides tighter transaction control by providing the ability to set up for each vendor certain reference GL Account IDs that you authorize for use when posting Accounts Payable invoices. This feature minimizes data entry errors and controls the transactions that affect the GL Account ID balances.
Article# 1224: Setting Up Authorized GL Account IDs for Use When Posting AP Invoices discusses how to set up authorized reference GL Account IDs for each vendor. It also discusses in detail the validation that AccountMate performs when posting AP invoices for vendors for whom you set up authorized reference GL Account IDs.

Technical Tips

Versions: AM11 for SQL and Express
AM10 for SQL and Express
AM9 for SQL and Express

Modules: AR, CI, SO

Q: A customer inventory price is set up for a customer and an item in Customer Inventory Maintenance. However, the customer inventory price is not used when I create a sales order or an invoice for the customer and item. Why?

A: This happens if you do not mark the Use Contract Price checkbox in the Customer Maintenance ► Settings tab. AccountMate will use the unit price entered in the Customer Inventory Maintenance ► New Price field only if the option is marked.

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Versions: AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for SQL, Express, and LAN
AM8 for LAN

Module: SO

Q: How can I verify what invoice is generated for a sales order?

A: Run the Shipment Report. This report displays both the sales order number and the invoice number of sales order shipments for which an invoice was generated.

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Versions: AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for SQL, Express, and LAN
AM8 for LAN

Module: GL

Q: In the Budgeted Income Statement report set to show Variance and Comparison, the revenues are calculated as Actual minus Budget; however, the expenses are calculated as Budget minus Actual. Why is there a difference in the calculation?

A: The numerical sign under the Difference column in the Budgeted Income Statement report identifies whether the variance/difference is “favorable” or “unfavorable.” In the Budgeted Income Statement report, an Actual revenue that is higher than the Budgeted (forecast) revenue is favorable; thus, the calculation is Actual – Budgeted. On the other hand, a Budgeted expense that is higher than the Actual expense is favorable; thus, we reverse the equation and use Budgeted – Actual.

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