Feature - Colorado Sales Tax Retail Delivery Fee (RDF) Support
Revised Date: 9/26/22, 06/22/23, 6/12/24
Version: 8.5 and Above
Effective 7/1/24
Note the fee is scheduled to increase to $0.29 on July 1, 2024.
Effective 7/1/23
Note the fee is scheduled to increase to $0.28 on July 1, 2023. Also, retailers have the option to pay the fee instead of charging the fee to the customer. If opting to pay the fee, the Global Setup option Global Setup-> COP-Ctl-> Credit Check & Release-> 19. Check For CO Sales Tax Retail Delivery Fee should be set to N. This will disable checking for the Colorado retail delivery fee item in Customer Order Processing.
Once this option is disabled, the fee must be paid when taxes are reported. The invoice history by state/ship-to summary
report will help determine the number of invoices processed for the state of Colorado. See sample screen
below:
Follow the instructions below if collecting the retail deliver fee from the customer.
Effective 7/1/22
For Colorado sales tax, a new Retail Delivery Fee (RDF) has been added effective 7/1/22 for all retail deliveries within their state of $0.27 that MUST be listed on the invoice to the customer as a separate line item. Note the fee was increased to $0.28 on July 1, 2023 and is scheduled to increase to $0.29 on 7/1/2024. If you are collecting Colorado sales tax, then it is your responsibility to add this miscellaneous RDF line item to all taxable Colorado sales orders. This feature will not remind you at the time of order entry to add this line item. But it can put the sales order on hold during pick ticket or invoice printing. Hence, it can prevent an order with this error from shipping out. This feature does not turn on by default in Global Setup. If you wish to enable it, we recommend that you also use the COP -> Processing -> Release Held order feature.
The following explains the steps to configure Elliott to support this feature.
1. Add RDF Product Category
Set up a special product category: say RDF – Retail Delivery Fee, or anything you feel appropriate in Inventory Management-> Maintenance-> Product Category File.
2. Add RDF Miscellaneous Item
Next, add a Misc. item that’s not taxable (so we don’t calculate tax on tax). It should be a non-stock item with $0 unit cost. The unit price is $0.27.
Note the fee was increased to $0.28 on July 1, 2023 and is scheduled to increase to $0.29 on 7/1/2024.
The cost should be $0.27 as well since you are collecting this fee on behalf of Colorado. The product category is RDF.
3. Add Product Category/Location to Update Proper Sales Tax Liability Account
You need to go to COP -> Maintenance -> Product Category/Location Account File Maintenance, add the records for RDF product categories and all possible locations that you may sell from. The Sales Account shall be your sales tax liability account. You may consider a separate cost of goods sold (COGS) account so this is not part of your regular inventory COGS.
4. Global Setup to Turn on RDF Feature
The RDF feature does not turn on by default. To turn on this feature, you need to go to Global Setup-> COP-Ctl-> Credit Check & Release-> 19. Check For CO Sales Tax Retail Delivery Fee?
19. Check For CO Sales Tax Retail Delivery Fee? - Default is N. If set to Y, a popup window will prompt the user for the Colorado RDF Item Number. Set the field to N to disable the support for the new Colorado retail delivery fee checking.
Colorado RDF Item Number - This field must be entered. Spaces are not allowed. Enter the miscellaneous item set up to support this fee.
During order entry, it is your responsibility to make sure to add this misc. RDF item to all taxable Colorado orders.
5. Release Held Order
This feature will detect if the miscellaneous RDF item is missing from the order at the time the picking ticket is printed or when the invoice is printed. If the miscellaneous RDF item is missing from the order, the order will be placed on hold. A note will be attached to the order that explains the reason why it is on hold. We expect you to use COP -> Processing -> Release Held Order if you have this feature enabled.
Below Is A Sample Credit Hold Note for Missing Colorado RDF Item
The Colorado RDF item specified in Credit Hold & Release Global Setup must be added to the order before further processing will be allowed.
6. Get Email Notification for Credit Hold Event
In addition, the PICHLDCU (Pick Ticket Held For Customer) and PICHLDSM (Pick Ticket Held For Salesman) events will allow you to subscribe by customer or salesman to the email when the order is placed on hold. See sample screen below:
If you only wish to receive the email when the order is put on hold due to sales tax reasons, you may specify the "held Type" EQ "T." See sample screen below:
7. Note for Avalara Sales Tax Interface
If you use Avalara Sales Tax Interface (supported after Elliott 8.6,) you should be aware of the followings:
- You should continue to add RDF items to taxable Colorado orders.
- The RDF fee as of writing is hard coded to be sent to Avalara as tax code OF400000 with $0.00 amount.
- Avalara will be able to determine the RDF amount and return back as part of the sales tax amount.
- Elliott will deduct RDF from Avalara returned sales tax amount.
- Therefore, there will be a discrepancy between sales amount and tax amount between Elliott and Avalara when Colorado RDF is involved. However, the total of the order amount still match.
- The root of this issue is with Colorado regulations that require the RDF be shown as a separate line item with the amount instead of the tax amount at invoice footer.
8. Note on General Ledger vs Sales Analysis by Customers
Your General Ledger will reflect correctly of this $0.27 as tax liability if you setup the Product Category/Location Account file correctly. On the other hand, if you perform sales analysis by customers, this $0.27, unfortunately, will show up as sales due to Colorado regulation. Note the fee was increased to $0.28 on July 1, 2023 and is scheduled to increase to $0.29 on 7/1/2024.
Programs Modified: NSCTLFIL.FD, NSCTLFIL.W38, NSCTLMN4, NSCTLINI, GELHLDMSG.WS, GETHLDMSG.PL, CPINVPRT.WS, CPINVPRT.PL, CPRESORD, CP0400, CPORDINQ, AVORDHAP, CP02P1, CPINVPRT, CPINVPRH, CPINVPRP
CLS