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 Exactor Frequently Asked Questions (FAQs)
Topic
Accounting Software
77
Question
My accounting software is not calculatng taxes
 Reponse
For security purposes, Exactor requires that each transaction requirs a valid Exactor issued Marchant ID (numeric); and a valid user name.You should check that the Merchant ID issued byExactor is being used in the accounting software and that the correct user name is also being used. You can verify the user name in your Exactor admin account, in the "Manage Users" tab.Make sure that spelling is identical (the system is also case sensitive)For more information, you should consult the User Guide 
 Key Words Level 2 Level 3Topic
Accounting Software
88
Question
Once I set up my account, what additional work will I berequired to perform?
 Reponse
Once set-up, all that you will need to do is supervize, manage and review your returns. Exactor is designed to meet ALL of your sales tax compliance needs.The fully automated Exactor system reduces the risk of misplacing or forgetting about a specific transaction. The suite’s full integration into your accounting program means that all you need to do is enter the transaction into your transaction document (invoice, purchase order, credit memo,etc) , then click save as you would for any other book-keeping program. Exactor is designed so that you do not need to perform additional activities. It avoids rqeuiring you to enter any additiona key entries.Once you click "save" Exactor begins to work: your system connects to the Exactor service, which calculates the tax for the transaction and enters it into the invoice right before your very eyes. The data then gets stored on the central Exactor server (for reports and returns generation at a later date).
 Key Words Level 2 Level 3
Tuesday, January 27, 2009Page 1 of 49
 
Topic
Accounting Software
115
Question
Can I download transactions from my shopping cart to myaccounting program?
 Reponse
Yes. Exactor's plug-ins allow you to upload transactions from the Exactor admin site directly into your QuickBooks program.What this means is that transactions that were inputted straight into your Exactor admin site, or transactions that originated from another source, such as your shopping cart,and were run through the Exactor system for calculation purposes (regardless whether or not sales taxes applied), can be downloaded in their entirety into QB, thus effectively bridging between your e-commerce shopping cart and your QB system.
 Key Words Level 2 Level 3Topic
Calculating Taxes
11
Question
Shipping & Handling (S&H), how does Exactor treat S&Hexpenses
 Reponse
Exactor has sophisticated logic that performs many tasks before looking up the tax rate. Amongst these are looking and applying the correct tax rules to the type of S&H that you are using. Exactor does not apply a generic rule to S&H, because that would lead to inaccurate results.Shipping and handling may be exempt from taxes, but often times they are taxable. Many times taxability will be determined by the state dependig upon the answer to questions such as (i) where does title pass to the buyer: and (ii) are the handling and shipping epenses combined in the invoice, or stated seperately. Exactor treats S&H like any other line item, and determines taxes owing depending upon (i) the type of S&H service; (ii) which carrier is used; and (iii)the state rules governing the transaction. Like any other product, different states have different rules for S&H. What makes it even more complicated is that different types of S&H may receive different treatment even within the state.This is the reason that Exactor looks at the type of S&H you use, and applies the rules of the state that govern that specific type of shipping and handling.
 Key Words Level 2 Level 3
Tuesday, January 27, 2009Page 2 of 49
 
Topic
Calculating Taxes
12
Question
Why shouldn't I use a simple tax rate table?
 Reponse
Sales tax is not as simple as taking a ZIP code and identifying the matching tax rate (this is what simple rate tables do).Calculating taxes using this method will generate incorrect results, and cause your exposure to tax liability. The fact is that not one of these tax rate tables are certified by the State taxing agencies under the Streamline Sales Tax (SST)project. The reason is that state taxing agencies recognize that looking up tax rates by ZIP codes leads to incorrect results.Exactor has sophisticated logic that performs many tasks before looking up the tax rate. These include (i) cleaning up the address, so it conforms to USPS guidelines; (ii) identifying the precise location of the transaction, using physical address; geo codes; FIPs codes, and does not rely just on zip or zip+4; (iii) identifying whether or not the specific product is taxable; (iv) determining whether there are any relevant tax holidays; and only then – (v) applying the correct tax rate.Flat Tax Tables simply do not have this kind of built-in logic,causing the user to oftentimes charge incorrect sales taxes.
 Key Words Level 2 Level 3Topic
Calculating Taxes
63
Question
I have noticed a discrepancy between the tax rate beingcharged by Exactor and the rate in the published tables.
 Reponse
This issue is that of the different methods for calculating taxes,and rounding errors that are directly resulting from each method. When you multiply the total invoice amount by the compounded tax rate, you will receive the result that you are referring to. This means that you have totaled all of the invoice line items together, multiplied the result by the tax rate,and the tax amount is rounded once per invoice.Exactor's system achieves a higher level of accuracy, albeit it might not seem so in this example. The Exactor system treats each line item as a stand alone transaction, and calculates taxes owing for each line item by the different applicable individual tax rates (state, county, city and special district).You will typically see multiple calculations for each different line item, resulting in a number of calculations (and rounding calculations) per invoice that is the product of the number of line items multiplied by the number of taxing agencies.
 Key Words Level 2 Level 3
Tuesday, January 27, 2009Page 3 of 49
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