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.

1 - 98 . (canceled) 
     
     
         99 . In a data processing system including a database, a method for providing mixed currency support for groups of financial transactions and customer accounts, comprising:
 creating in the database a plurality of entities each representing one of a plurality of financial transactions, a component of one or more of the financial transactions, a customer account relating to one or more of the financial transactions, or a set of currency exchange rates;   creating in the database one or more relationships, each relating at least two of the entities;   storing in one or more of the entities each one or more monetary amounts, the monetary amounts each representing a debit amount, a credit amount, an account balance, a fee charged for a component of a transaction, a cost attributable to the component, or a tax applicable to the component, wherein each of the entities storing a monetary amount is selected from the group consisting of the entities representing financial transactions, entities representing components of financial transaction, and entities representing customer accounts; and   in a query processing program running on a computer having access to the database, processing a query posed by a user of the data processing system to return information to the user based on selecting and inspecting the entities of the database and the relations relating the entities.   
     
     
         100 . The method of  claim 99 , wherein the monetary amounts each represent one of a plurality of currencies, selected from the group consisting of (a) a currency for initiating a transaction, (b) a target currency of a transaction, a storage currency of an account involved in a transaction, and (c) a common currency of the data processing system. 
     
     
         101 . The method of  claim 100  wherein, when the query involves a plurality of the entities, the entities involving one or more of the currencies, the method further comprises selecting one of the currencies in a response to the query, the selected currency being selected to provide a consistent currency for all the entities involved in the query. 
     
     
         102 . The method of  claim 101 , wherein the consistent currency being either the storage currency of an account involved in the query or the common currency of the system. 
     
     
         103 . The method of  claim 99 , further comprising creating in the database one or more entities each representing a tax rate or a tax amount that is applicable to one or more of the components of the financial transactions. 
     
     
         104 . The method of  claim 103 , wherein the tax rate or tax amount is applicable to a fee charged for a component of a financial transaction. 
     
     
         105 . The method of  claim 103 , wherein the tax rate or tax amount is applicable to a cost attributable to a component of a financial transaction. 
     
     
         106 . The method of  claim 103 , wherein the tax rate or tax amount is applicable to a cost internally allocated to a component of a financial transaction. 
     
     
         107 . The method of  claim 103 , wherein the tax rate or tax amount is applicable to a gross profit for a component of a financial transaction. 
     
     
         108 . In a data processing system including a database, a non-transitory computer-readable medium including computer-executable instructions that carry out a method for providing mixed currency support for groups of financial transactions and customer accounts, wherein the method comprises:
 creating in the database a plurality of entities each representing one of a plurality of financial transactions, a component of one or more of the financial transactions, a customer account relating to one or more of the financial transactions, or a set of currency exchange rates;   creating in the database one or more relationships, each relating at least two of the entities; and   storing in one or more of the entities each one or more monetary amounts, the monetary amounts each representing a debit amount, a credit amount, an account balance, a fee charged for a component of a transaction, a cost attributable to the component, or a tax applicable to the component, wherein each of the entities storing a monetary amount is selected from the group consisting of the entities representing financial transactions, entities representing components of financial transaction, and entities representing customer accounts.   
     
     
         109 . The computer-readable medium of  claim 108 , wherein the monetary amounts each represent one of a plurality of currencies, selected from the group consisting of (a) a currency for initiating a transaction, (b) a target currency of a transaction, a storage currency of an account involved in a transaction, and (c) a common currency of the data processing system. 
     
     
         110 . The computer-readable medium of  claim 109  wherein, when the data processing system receives a query that involve a plurality of the entities, the entities involving one or more of the currencies, the method further comprises selecting one of the currencies in a response to the query, the selected currency being selected to provide a consistent currency for all the entities involved in the query. 
     
     
         111 . The computer-readable medium of  claim 110 , wherein the consistent currency being either the storage currency of an account involved in the query or the common currency of the system. 
     
     
         112 . The computer-readable medium of  claim 108 , wherein the method further comprises creating in the database one or more entities each representing a tax rate or a tax amount that is applicable to one or more of the components of the financial transactions. 
     
     
         113 . The computer-readable medium of  claim 112 , wherein the tax rate or tax amount is applicable to a fee charged for a component of a financial transaction. 
     
     
         114 . The computer-readable medium of  claim 112 , wherein the tax rate or tax amount is applicable to a cost attributable to a component of a financial transaction. 
     
     
         115 . The computer-readable medium of  claim 112 , wherein the tax rate or tax amount is applicable to a cost internally allocated to a component of a financial transaction. 
     
     
         116 . The computer-readable medium of  claim 112 , wherein the tax rate or tax amount is applicable to a gross profit for a component of a financial transaction.