Overview
Beginning July 1, 2022, the state of Colorado is imposing a $0.27 Retail Delivery Fee (RDF) on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales and use tax.
Retailers must separately state the retail delivery fee on all customer invoices and receipts.
Note: The fee is levied on all qualifying deliveries, even when shipping is free.
This text is copied from the Avalara Help Center post. Link indicated below
You can read the Avalara communication on this post, and related information on this blog.
Calculating the Colorado Retail Delivery Fee in SAP BussinesOne
The fee is calculated by Avalara. The Avatax SAP B1 just sends the transaction information to Avalara and handles the response.
In order to have the Colorado Retail Delivery Fee calculated, you need to include a new line item in the sales document, with the provided Avatax TaxCode (OF400000), and a valid Colorado Ship-To address set for this line, and Avalara will calculate and return the expected fee.
Define a new item in your Item Master Data, like this:
Then you can include the item o a sales document, and get the tax calculated including the fee (for the release day it will be USD 0.27).
Consider that if you are testing and calculating before July 1st 2022, you need to include a Tax Date Override on the document in order to get the Colorado Fee included in the result, you can do it from this UDF:
New features for the Colorado Retail Delivery Fee in SAP BusinessOne
With the previous steps you can get the Colorado Retail Delivery Fee included and calculated in the document, but you still need to manually add the Colorado Fee line item manually in the document.
To enhance this and provide automatization capabilities, we are releasing a new set of features, that are configurable from the add-on settings on a new section:
There are 4 (four) Colorado Fee Modes available:
- Inactive
- Prompt Message
- UDF Check
- Automatic – Always
Check the video showing the new features:
Mode Inactive
This is the default mode. Here the application will do no automatic actions, and you need to manually include the Colorado Delivery Fee item when required.
For the automated modes, the application will check the document at the moment of calculation. If the document is of type Items, and the document ship-to state or any line ship-to state is Colorado, then it will consider the Colorado Fee applies, and will follow the mode logic, as explained below.
The automatization basically consists in adding the Colorado Fee item to the document, and calculate the taxes.
Prompt Message
For automated modes, you need to select the Colorado Fee Item defined before in the Item Master Data.
In this mode, the application will prompt you with a confirmation message to include the Colorado Fee, like this.
If confirmed, then the item will be added and the tax calculated.
This mode will only work for manual calculations. It doesn’t apply to Document Generation Wizard process or Event Service process, as there is no prompt during the bulk processing.
UDF Check
This mode works by evaluating a configurable UDF at the document header level, and add the Colorado Fee Item if the UDF value is Y.
To use this mode, you need to also complete the Colorado Fee UDF name at the settings, in this sample called U_TEST.
At the calculation moment, if the UDF value is Y, then the Colorado Fee Item will be automatically included in the document and in the tax calculation. The UDF value can only by Y, using Yes or other values will not be considered, but you can set any description to the UDF field.
Automatic
On this mode, the Colorado Fee Item will always be included in the document if the previous requirements are met: having a Colorado Ship-To address in the Item-Type document.
No prompts or evaluation will be made, and the fee item will be added to the document and included in the tax calculation.
This mode works for manual calculations, event service calculations and document generation wizard processes.
WebUI
The same features will be also released for the webUI, even for tax calculation jobs and for document generation.
Like all other configuration settings, the WebUI is totally independent from the Avatax add-on configuration.
The Prompt Message method is not available as no prompt will be shown during bulk processes.