Method for Automatic Testing of Tax Software

1 . A system for validating configurations of client specific taxable transactions, the system comprising:

at least one computer having at least one processor;

at least one memory operably coupled to the at least one processor, the memory being configured for storing a computer program which, when executed by the processor, causes the processor to perform steps of:

inputting client initial transaction data to a test deck generating program, comprising steps of:

identifying transactions;

identifying, for each respective transaction, tax treatment rules that apply to the respective transaction; and

including the tax treatment rules in the client initial transaction data identified as applying to the respective transaction;

executing the test deck generating program to generate a client tax configuration test deck comprising steps of:

analyzing the initial transaction data;

supplementing the initial transaction data with assumed transaction data based on the analysis of the initial transaction data; and

calculating expected taxability of the initial transaction data and assumed transaction data with corrected data conflicts;

executing a tax determination program using data from the client tax configuration test deck to generate simulated tax calculations;

inputting the simulated tax calculations to a configuration validation program;

executing the configuration validation program to compare the simulated tax calculations with the expected taxability of the transaction data to identify defects;

inputting amended client initial transaction data to the test deck generating program, the amended client initial transaction data comprising client initial transaction data amended to correct the identified defects;

repeating the steps of executing the test deck generating program, executing the tax determination program, inputting the simulated tax calculations generated to a configuration validation program, and executing the configuration validation program, when defects are identified in the step of executing the configuration validation program; and

generating a report summarizing the results of the testing configuration with defects corrected.

2 . The system of claim 1 , wherein the tax treatment rules are predetermined.

3 . The system of claim 1 , wherein the tax treatment rules are created as needed.

4 . The system of claim 1 , wherein the tax treatment rules are modified as needed.

5 . The system of claim 1 , wherein client initial transaction data includes at least one of information relating to the client's legal entities, tax location, tax registration, location of customers and/or vendors, the nature of supply and/or purchases, a point of title transfer for goods, vendor establishment status, and customer establishment status.

6 . The system of claim 1 , wherein the step of executing the test deck generating program further comprises steps of:

testing the initial transaction data and assumed transaction data for data conflicts;

determining whether there are any data conflicts; and

upon a determination that there are data conflicts, correcting the data conflicts.

7 . The system of claim 1 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting the test deck to a test deck extending program; and

executing the test deck extending program, comprising the steps of:

analyzing the initial, assumed, and supplemental transaction data;

generating supplemental transaction data; and

generating a client tax configuration extended test deck comprising the initial transaction data, assumed transaction data, supplemental transaction data and expected taxability of the transaction data.

8 . The system of claim 1 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information.

9 . The system of claim 1 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information; the transaction type specifying goods or services and, for services, the category of service types; the terms for goods including when title transfers on cross-border transactions.

10 . The system of claim 1 , wherein execution of the computer program by the processor further causes the processor to perform a step of importing data values from an external tax determination program to the test deck.

11 . The system of claim 1 , wherein execution of the computer program by the processor further causes the processor to perform steps of saving and exporting into a computer-readable format the results of the simulated tax calculations.

12 . A system for validating configurations of client specific taxable transactions, the system including a computer having at least a processor and a memory operably coupled to the processor, the memory being configured for storing a computer program which, when executed by the processor, causes the processor to perform steps of:

inputting client initial transaction data to a test deck generating program;

executing the test deck generating program to generate a client tax configuration test deck comprising the initial transaction data, assumed transaction data, and expected taxability of the initial transaction data and assumed transaction data;

executing a tax determination program using data from the client tax configuration test deck to generate simulated tax calculations;

inputting the simulated tax calculations to a configuration validation program;

executing the configuration validation program to compare the simulated tax calculations with the expected taxability of the transaction data to identify defects; and

generating a report identifying the defects.

13 . The system of claim 12 , wherein client initial transaction data includes at least one of information relating to the client's legal entities, tax location, tax registration, location of customers and/or vendors, the nature of supply and/or purchases, a point of title transfer for goods, vendor establishment status, and customer establishment status.

14 . The system of claim 12 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting amended client initial transaction data to the test deck generating program, the amended client initial transaction data comprising client initial transaction data amended to correct the identified defects;

executing the test deck generating program to generate an amended client tax configuration test deck comprising the initial transaction data, assumed transaction data, and expected taxability of the initial transaction data and assumed transaction data;

executing the tax determination program from the amended client tax configuration test deck to generate simulated tax calculations;

inputting the simulated tax calculations generated with defects corrected to a configuration validation program;

executing the configuration validation program to compare the simulated tax calculations with the expected taxability of the transaction data to identify defects; and

generating a report summarizing the results of the testing configuration with defects corrected.

15 . The system of claim 12 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, predetermined tax treatment rules that apply to the respective transaction;

including the predetermined tax treatment rules in the client initial transaction data identified as applying to the respective transaction; and

generating a report identifying each transaction and tax treatment rule that is associated with each respective transaction.

16 . The system of claim 12 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, tax treatment rules that apply to the respective transaction, wherein the tax treatment rules are created or modified as needed;

including the tax treatment rules in the client initial transaction data identified as applying to the respective transaction; and

generating a report identifying each transaction and tax treatment rule that is associated with each respective transaction.

17 . The system of claim 12 , wherein the step of executing the test deck generating program further comprises steps of:

analyzing the initial transaction data;

supplementing the initial transaction data with assumed transaction data based on the analysis of the initial transaction data; and

calculating expected taxability of the initial transaction data and assumed transaction data with corrected data conflicts.

18 . The system of claim 12 , wherein the step of executing the test deck generating program further comprises steps of:

analyzing the initial transaction data;

supplementing the initial transaction data with assumed transaction data based on the analysis of the initial transaction data;

testing the initial transaction data and assumed transaction data for data conflicts;

determining whether there are any data conflicts;

upon a determination that there are data conflicts, correcting the data conflicts; and

calculating expected taxability of the initial transaction data and assumed transaction data with corrected data conflicts.

19 . The system of claim 12 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting supplemental transaction data; and

generating a client tax configuration extended test deck comprising the initial transaction data, assumed transaction data, supplemental transaction data and expected taxability of the initial transaction data, assumed transaction data, and supplemental transaction data.

20 . The system of claim 12 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting the test deck to a test deck extending program; and

generating the test deck extending program, comprising the steps of:

analyzing the initial, assumed, and supplemental transaction data;

outputting supplemental transaction data; and

generating a client tax configuration extended test deck comprising the initial transaction data, assumed transaction data, and supplemental transaction data, and expected taxability of the transaction data, assumed transaction data, and supplemental transaction data.

21 . The system of claim 12 , wherein the test deck comprises data values that correspond to user selected taxability factors.

22 . The system of claim 12 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information.

23 . The system of claim 12 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information; the transaction type specifying goods or services and, for services, the category of service types; the terms for goods including when title transfers on cross-border transactions.

24 . The system of claim 12 , wherein execution of the computer program by the processor further causes the processor to perform steps of importing data values from an external tax determination program to the test deck.

25 . The system of claim 12 , wherein execution of the computer program by the processor further causes the processor to perform steps of saving and exporting into a computer-readable format the results of the simulated tax calculations.

26 . A system for validating configurations of client specific taxable transactions, the system including a computer having at least a processor and a memory operably coupled to the processor, the memory being configured for storing a computer program which, when executed by the processor, causes the processor to perform steps of:

inputting client initial transaction data to a test deck generating program;

executing the test deck generating program to generate a client tax configuration test deck comprising the initial transaction data and expected taxability of the initial transaction data;

executing a tax determination program using data from the client tax configuration test deck to generate simulated tax calculations;

inputting the simulated tax calculations to a configuration validation program;

executing the configuration validation program to compare the simulated tax calculations with the expected taxability of the transaction data to identify defects; and

generating a report identifying the defects.

27 . The system of claim 26 , wherein client initial transaction data includes at least one of information relating to the client's legal entities, tax location, tax registration, location of customers and/or vendors, the nature of supply and/or purchases, a point of title transfer for goods, vendor establishment status, and customer establishment status.

28 . The system of claim 26 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting amended client initial transaction data to the test deck generating program, the amended client initial transaction data comprising client initial transaction data amended to correct the identified defects;

executing the test deck generating program to generate an amended client tax configuration test deck comprising the initial transaction data and expected taxability of the initial transaction data;

executing the tax determination program from the amended client tax configuration test deck to generate simulated tax calculations;

inputting the simulated tax calculations generated with defects corrected to a configuration validation program;

executing the configuration validation program to compare the simulated tax calculations with the expected taxability of the transaction data to identify defects; and

generating a report summarizing the results of the testing configuration with defects corrected.

29 . The system of claim 26 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, predetermined tax treatment rules that apply to the respective transaction; and

including the predetermined tax treatment rules in the client initial transaction data identified as applying to the respective transaction.

30 . The system of claim 26 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, tax treatment rules that apply to the respective transaction, wherein the tax treatment rules are created or modified as needed; and

including the tax treatment rules in the client initial transaction data identified as applying to the respective transaction.

31 . The system of claim 26 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, predetermined tax treatment rules that apply to the respective transaction;

including the predetermined tax treatment rules in the client initial transaction data identified as applying to the respective transaction; and

generating a report identifying each transaction and tax treatment rule that is associated with each respective transaction.

32 . The system of claim 26 , wherein the step of inputting client initial transaction data to a test deck generating program further comprises steps of:

identifying transactions;

identifying, for each respective transaction, tax treatment rules that apply to the respective transaction, wherein the tax treatment rules are created or modified as needed;

including the tax treatment rules in the client initial transaction data identified as applying to the respective transaction; and

generating a report identifying each transaction and tax treatment rule that is associated with each respective transaction.

33 . The system of claim 26 , wherein the step of executing the test deck generating program further comprises steps of:

analyzing the initial transaction data;

supplementing the initial transaction data with assumed transaction data based on the analysis of the initial transaction data; and

calculating expected taxability of the initial transaction data and assumed transaction data with corrected data conflicts.

34 . The system of claim 26 , wherein the step of executing the test deck generating program further comprises steps of:

analyzing the initial transaction data;

supplementing the initial transaction data with assumed transaction data based on the analysis of the initial transaction data;

testing the initial transaction data and assumed transaction data for data conflicts;

determining whether there are any data conflicts;

upon a determination that there are data conflicts, correcting the data conflicts; and

calculating expected taxability of the initial transaction data and assumed transaction data with corrected data conflicts.

35 . The system of claim 26 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting supplemental transaction data; and

generating a client tax configuration extended test deck comprising the initial transaction data and supplemental transaction data, and expected taxability of the initial transaction data and supplemental transaction data.

36 . The system of claim 26 , wherein execution of the computer program by the processor further causes the processor to perform steps of:

inputting the test deck to a test deck extending program; and

generating the test deck extending program, comprising the steps of:

analyzing the initial and supplemental transaction data;

outputting supplemental transaction data; and

generating a client tax configuration extended test deck comprising the initial transaction data and supplemental transaction data, and expected taxability of the transaction data and supplemental transaction data.

37 . The system of claim 26 , wherein the test deck comprises data values that correspond to user selected taxability factors.

38 . The system of claim 26 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information.

39 . The system of claim 26 , wherein the test deck comprises data values that correspond to user selected taxability factors, the data values including at least one of company name, transaction date, transaction type, transaction amount, terms, and ship-from and ship-to information; the transaction type specifying goods or services and, for services, the category of service types; the terms for goods including when title transfers on cross-border transactions.

40 . The system of claim 26 , wherein execution of the computer program by the processor further causes the processor to perform a step of importing data values from an external tax determination program to the test deck.

41 . The system of claim 26 , wherein execution of the computer program by the processor further causes the processor to perform steps of saving and exporting into a computer-readable format the results of the simulated tax calculations.