System and method for calculating taxes and multi-currency pricing

Abstract

A method and a system for determining taxes attributable to a financial transaction create a tax rate table, link an entity of the financial transaction to the tax rate table through a product rule, and calculate taxes based on the tax rate table according to one component of the financial transaction. The tax rate tables can be linked by a default product rule, which is a defined by a global variable. Alternatively, specific product rules can be used to link specific entities, such as tax jurisdiction records, or legal entity records. In one application, the method and the system calculate revenue tax, cost tax, input tax, and profits for each transaction. The method and the system may further include multi-currency support analysis for a financial transaction so that a financial transaction can be analyzed under a common currency, even though the financial transaction is conducted using one or more currencies in one or more jurisdictions.

We claim:  
     
         1 . A method of determining taxes for a transaction, comprising: 
 creating a tax table;    creating an attribute that links the tax table to an entity of the transaction; and    determining a tax rate or tax amount by accessing the tax table through the attribute for at least a component of the transaction.    
     
     
         2 . The method of  claim 1 , wherein the attribute is provided as a part of a product rule.  
     
     
         3 . The method of  claim 1 , wherein the attribute relates to a service code.  
     
     
         4 . The method of  claim 1 , wherein the attribute is provided as part of a component of the transaction.  
     
     
         5 . The method of  claim 1 , wherein the attribute is a global variable.  
     
     
         6 . The method of  claim 1 , wherein the tax rate or tax amount is applied to a component of a transaction.  
     
     
         7 . The method of  claim 1 , wherein the tax rate or tax amount is applied after aggregating components of a transaction.  
     
     
         8 . The method of  claim 1 , wherein the tax rate or tax amount is applied after-aggregating transactions.  
     
     
         9 . The method of  claim 1 , wherein the tax table includes a tax rate represented by a multiplier.  
     
     
         10 . The method of  claim 1 , wherein the attribute denotes a tax jurisdiction relevant to the component of the transaction.  
     
     
         11 . The method of  claim 1 , wherein a default product rule associates the transaction with the tax table.  
     
     
         12 . The method of  claim 1 , wherein multiple product rules are created for linking the transaction to multiple tax tables, according to the component of the transaction.  
     
     
         13 . The method of  claim 1 , wherein the tax table contains taxation values that are used for revenue tax calculations.  
     
     
         14 . The method of  claim 1 , wherein the tax table contains taxation values that are used for cost tax calculations.  
     
     
         15 . The method of  claim 1 , wherein the tax table contains taxation values that are used for transfer tax calculations.  
     
     
         16 . The method of  claim 1 , wherein the entity contains an attribute that identifies a taxation jurisdiction.  
     
     
         17 . The method of  claim 1 , wherein the entity contains an attribute that identifies a legal entity.  
     
     
         18 . The method of  claim 1 , wherein the entity contains an attribute that identifies a service rendered in the transaction.  
     
     
         19 . The method of  claim 1 , wherein the entity contains an attribute that identifies an activity.  
     
     
         20 . The method of  claim 1 , wherein the entity contains an attribute that identifies the transaction.  
     
     
         21 . The method of  claim 1 , wherein the entity contains an attribute that identifies an account.  
     
     
         23 . The method of  claim 1 , wherein the entity contains an attribute that identifies a service rendered on an account.  
     
     
         24 . The method of  claim 1 , wherein the entity contains an attribute that identifies a plurality of accounts.  
     
     
         25 . The method of  claim 1 , wherein the entity contains an attribute that identifies a customer.  
     
     
         26 . The method of  claim 1 , further comprising: 
 determining a revenue tax for the transaction, wherein the revenue tax is calculated from a revenue tax table linked to the entity; and    calculating the tax on supplies based on the revenue tax.    
     
     
         27 . The method of  claim 1 , further comprising: 
 determining a cost tax for the transaction, wherein the cost tax is calculated from a cost tax table linked to the entity; and    calculating the acquisition tax credits based on the cost tax.    
     
     
         28 . The method of  claim 26 , further comprising: 
 determining a cost tax for the transaction, wherein the cost tax is calculated from a cost tax table linked to the entity;    calculating the acquisition tax credits based on the cost tax; and    calculating the tax owed by computing the difference between the tax for supply and the acquisition tax credits.    
     
     
         29 . The method of  claim 28 , further comprising: 
 calculating a first and second “excluding tax” amounts for revenue and cost of the transaction, respectively; and    calculating a profit by determining the difference between the first and second excluding tax amounts.    
     
     
         30 . The method of  claim 28 , further comprising: 
 determining a pre-tax profit using the difference between a total revenue and a total cost of the transaction; and    determining an excluding tax profit by taking into account the tax on supplies and the acquisition tax credits.    
     
     
         31 . The method of  claim 1 , further comprising displaying on a user interface the determined tax rate or a tax amount.  
     
     
         32 . The method of  claim 1 , further comprising creating a statement listing the determined tax rate or a tax amount.  
     
     
         33 . The method of  claim 1 , further comprising: 
 creating a currency exchange rate table;    creating a product rule linking the entity to the currency exchange rate table; and    converting an amount related to the transaction expressed in a first currency into an amount expressed in a second currency based on the currency exchange rate table.    
     
     
         34 . A data processing system for determining taxes of a transaction, said data processing system comprising: 
 means for creating a tax table;    means for creating a link between an entity of the transaction and the tax table; and    means for determining a tax for at least a component of the transaction based on the tax table.    
     
     
         35 . The data processing system of  claim 34 , wherein the link is provided as a part of a product rule.  
     
     
         36 . The data processing system of  claim 34 , wherein the link relates to a service code.  
     
     
         37 . The data processing system of  claim 34 , wherein the link is provided as part of a component of the transaction.  
     
     
         38 . The data processing system of  claim 34 , wherein the link is a global variable.  
     
     
         39 . The data processing system of  claim 34 , wherein the tax rate or tax amount is applied to a component of a transaction.  
     
     
         40 . The data processing system of  claim 34 , wherein the tax rate or tax amount is applied after aggregating components of a transaction.  
     
     
         41 . The data processing system of  claim 34 , wherein the tax rate or tax amount is applied after aggregating transactions.  
     
     
         42 . The data processing system of  claim 34 , wherein the tax table includes a tax rate represented by a multiplier.  
     
     
         43 . The data processing system of  claim 34 , wherein the attribute denotes a tax jurisdiction relevant to the component of the transaction.  
     
     
         44 . The data processing system of  claim 34 , wherein the means for creating a link comprises at least a default product rule associated with the tax table.  
     
     
         45 . The data processing system of  claim 34 , wherein the means for creating a link comprises: 
 means for creating a product rule related to the transaction, the product rule including an attribute; and    means for linking the tax table to the transaction by the attribute of the product rule.    
     
     
         46 . The data processing system of  claim 34 , wherein the tax table contains taxation values that are used for calculating revenue taxes.  
     
     
         47 . The data processing system of  claim 34 , wherein the tax table contains taxation values that are used for calculating cost taxes.  
     
     
         48 . The data processing system of  claim 34 , wherein the tax table contains taxation values that are used for calculating transfer taxes.  
     
     
         49 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a taxation jurisdiction.  
     
     
         50 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a legal entity.  
     
     
         51 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a service rendered in the transaction.  
     
     
         52 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies an activity.  
     
     
         53 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies the transaction.  
     
     
         54 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies an account.  
     
     
         55 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a service rendered on an account.  
     
     
         56 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a plurality of accounts.  
     
     
         57 . The data processing system of  claim 34 , wherein the entity contains an attribute that identifies a customer.  
     
     
         58 . The data processing system of  claim 34 , further comprising means for determining a revenue tax for the transaction, wherein the revenue tax is calculated from a revenue tax table related to the entity and means for calculating the tax on supplies based on the revenue tax.  
     
     
         59 . The data processing system of  claim 34 , further comprising means for determining a cost tax for the transaction, wherein the cost tax is calculated from a cost tax table linked to the entity and means for calculating the acquisition credits based on the cost tax.  
     
     
         60 . The data processing system of  claim 58 , further comprising: 
 means for determining a cost tax for the transaction, wherein the cost tax is calculated from a cost tax table linked to the entity;    means for calculating the acquisition tax credits based on the cost tax; and    means for calculating the tax owed by computing the difference between the tax for supply and the acquisition tax credits.    
     
     
         61 . The data processing system of  claim 60 , further comprising: 
 means for calculating a first and second “excluding tax” amounts for revenue and cost of the transaction, respectively; and    means for calculating a profit by determining the difference between the first and second excluding tax amounts.    
     
     
         62 . The data processing system of  claim 60 , further comprising: 
 means for determining a pre-tax profit using the difference between a total revenue and a total cost of the transaction; and    means for determining an excluding tax profit by taking into account the tax on supplies and the acquisition tax credits.    
     
     
         63 . The data processing system of  claim 34 , further comprising means for displaying on a user interface the tax rate or a tax amount attributable to the entity.  
     
     
         64 . The data processing system of  claim 34 , further comprising means for creating a statement listing the tax rate or a tax amount attributable to the entity.  
     
     
         65 . The data processing system of  claim 34 , further comprising: 
 means for creating a currency exchange rate table;    means for creating a link between the transaction and the currency exchange rate table; and    means for converting an amount related to the transaction expressed in a first currency into an amount expressed in a second currency based on the currency exchange rate table.    
     
     
         66 . A method of multi-currency support analysis for a transaction, comprising: 
 creating a currency exchange rate table;    creating an attribute linking the currency exchange rate table to an entity of the transaction; and    converting an amount related to the transaction expressed in the first currency into an amount expressed in the second currency based on the currency exchange rate table.    
     
     
         67 . The method of  claim 66 , wherein the attribute is provided as a part of a product rule.  
     
     
         68 . The method of  claim 66 , wherein the attribute relates to a service code.  
     
     
         69 . The method of  claim 66 , wherein the attribute is provided as part of a component of the transaction.  
     
     
         69 . The method of  claim 66 , wherein the attribute is a global variable.  
     
     
         70 . The method of  claim 66 , wherein the converting is performed on a component of a transaction.  
     
     
         71 . The method of  claim 66 , wherein the converting is performed after aggregating components of a transaction.  
     
     
         72 . The method of  claim 66 , wherein the converting is performed after aggregating transactions.  
     
     
         73 . The method of  claim 66 , wherein the currency exchange rate table includes a currency exchange rate represented by a multiplier.  
     
     
         74 . The method of  claim 66 , wherein the linking uses at least one default product rule to link the currency exchange rate table.  
     
     
         75 . The method of  claim 66 , wherein the linking comprises: 
 creating a product rule related to the transaction, the product rule including an attribute; and    linking the currency exchange rate table to the entity through the attribute.    
     
     
         76 . The method of  claim 66 , wherein the currency exchange rate table is periodically updated.  
     
     
         77 . The method of  claim 66 , further comprising pricing accounts with transactions in multiple currencies using a predetermined currency.  
     
     
         78 . The method of  claim 77 , further comprising retrieving unit price records for a service rendered and applying prices on the unit price records to the service.  
     
     
         79 . The method of  claim 78 , further comprising displaying results of applying prices on the unit price records in a user interface.  
     
     
         80 . The method of  claim 78 , further comprising listing results of applying prices on the unit price records in a statement.  
     
     
         81 . The method of  claim 66 , further comprising: 
 creating a tax table;    linking the tax table to an entity of the transaction; and    calculating a tax based on the tax table.    
     
     
         82 . A data processing system for multi-currency support analysis for a transaction, comprising: 
 means for creating a currency exchange rate table;    means for creating an attribute linking the currency exchange rate table to an entity of the transaction; and    means for converting an amount related to the transaction expressed in the first currency into an amount expressed in the second currency based on the currency exchange rate table.    
     
     
         83 . The data processing system of  claim 82 , wherein the attribute is provided as a part of a product rule.  
     
     
         84 . The data processing system of  claim 82 , wherein the attribute relates to a service code.  
     
     
         85 . The data processing system of  claim 82 , wherein the attribute is provided as part of a component of the transaction.  
     
     
         86 . The data processing system of  claim 82 , wherein the attribute is a global variable.  
     
     
         87 . The data processing system of  claim 82 , wherein the means for converting applies a conversion on a component of a transaction.  
     
     
         88 . The data processing system of  claim 82 , wherein the means for converting applies a conversion after aggregating components of a transaction.  
     
     
         89 . The data processing system of  claim 82 , wherein the means for converting applies a conversion after aggregating transactions.  
     
     
         90 . The data processing system of  claim 82 , wherein the currency exchange rate table includes a currency exchange rate represented by a multiplier.  
     
     
         91 . The data processing system of  claim 82 , wherein means for creating uses a default product rule to link the currency exchange rate table.  
     
     
         92 . The data processing system of  claim 82 , wherein the means of creating comprises: 
 means for creating a product rule related to the transaction, the product rule including an attribute; and    means for linking the currency exchange rate table to the entity through the attribute.    
     
     
         93 . The data processing system of  claim 82 , wherein the currency exchange rate table is periodically updated.  
     
     
         94 . The data processing system of  claim 82 , further comprising means for pricing accounts with transactions in multiple currencies using a predetermined currency.  
     
     
         95 . The data processing system of  claim 94 , further comprising means for retrieving unit price records for a service rendered and means for applying prices on the unit price records to the service.  
     
     
         96 . The data processing system of  claim 82 , further comprising displaying results of applying prices on the unit price records in a user interface.  
     
     
         97 . The data processing system of  claim 82 , further comprising means for listing results of applying prices on the unit price records in a statement.  
     
     
         98 . The data processing system of  claim 82 , further comprising: 
 means for creating a tax table;    means for linking the tax table to an entity of the entity; and    means for calculating a tax based on the tax table.