System and method for calculating taxes and multi-currency pricing
View Patent ↗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. In a data processing system including a database, a method of multi-currency support analysis for a transaction, comprising:
creating in the database of the data processing system an entity representing a currency exchange rate table that converts between a value expressed in a first currency and an equivalent value expressed in a second currency;
representing each service or product in the database by an entity which is being referred to as a service code or a product rule;
creating an attribute in the product rule or the service code to link the product rule or the service code to the currency exchange rate table;
identifying components of the transaction, each component being one or more services or products valued at the first currency;
representing each component of the transaction as an entity in a database; and
converting the values of the service or the product in one or more components expressed in the first currency into amounts expressed in the second currency based on the currency exchange rate table.
2. The method of claim 1 , wherein the converting is performed after aggregating components of a transaction.
3. The method of claim 1 , wherein the converting is performed after aggregating transactions.
4. The method of claim 1 , wherein the currency exchange rate table includes a currency exchange rate represented by a multiplier.
5. The method of claim 1 , wherein the linking uses at least one default product rule to link the currency exchange rate table.
6. The method of claim 1 , wherein the currency exchange rate table is periodically updated.
7. The method of claim 1 , further comprising pricing accounts with transactions in multiple currencies using a predetermined currency.
8. The method of claim 7 , further comprising retrieving unit price records for a service rendered and applying prices on the unit price records to the service.
9. The method of claim 8 , further comprising displaying results of applying prices on the unit price records in a user interface.
10. The method of claim 8 , further comprising listing results of applying prices on the unit price records in a statement.
11. The method of claim 1 , 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.
12. A non-transitory computable readable medium for use in a data processing system for multicurrency support analysis for a transaction, comprising instructions executable by a processor in the data processing system for:
creating in a database an entity representing a currency exchange rate table that converts between a value expressed in a first currency and an equivalent value expressed in a second currency;
representing each service or product in the database by an entity which is being referred to as a service code or a product rule;
creating in the service code or the product rule an attribute that links the service code or the product rule to the currency exchange rate table;
identifying components of the transaction, each component being one or more services or products valued at the first currency;
representing each component of the transaction as an entity in a database; and
converting the values of one or more values of the service or the product in one or more components expressed in the first currency into amounts expressed in the second currency based on the currency exchange rate table.
13. The computer-readable medium of claim 12 , wherein the attribute is a global variable.
14. The computer-readable medium of claim 12 , wherein the converting applies a conversion on a component of a transaction.
15. The computer-readable medium of claim 12 , wherein the converting applies a conversion after aggregating components of a transaction.
16. The computer-readable medium of claim 12 , wherein the converting applies a conversion after aggregating transactions.
17. The computer-readable medium of claim 12 , wherein the currency exchange rate table includes a currency exchange rate represented by a multiplier.
18. The computer-readable medium of claim 12 , wherein the creating an attribute uses a default product rule to link the currency exchange rate table.
19. The computer-readable medium of claim 12 , wherein the currency exchange rate table is periodically updated.
20. The computer-readable medium of claim 12 , further comprising instructions executable by the processor for pricing accounts with transactions in multiple currencies using a predetermined currency.
21. The computer-readable medium of claim 20 , further comprising instructions executable by the processor for retrieving unit price records for a service rendered and means for applying prices on the unit price records to the service.
22. The computer-readable medium of claim 21 , further comprising instructions executable by the processor for displaying results of applying prices on the unit price records in a user interface.
23. The computer-readable medium of claim 21 , further comprising instructions executable by the processor for listing results of applying prices on the unit price records in a statement.
24. The computer-readable medium of claim 12 , further comprising instructions executable by the processor for:
creating a tax table;
linking the tax table to an entity of the transaction; and
calculating a tax based on the tax table.
25. The method of claim 1 , wherein the attribute is a global variable.