A new FI configuration setting is available to enable the use of estimated taxes and unregulated sales for cannabis industry licenses in Monthly or Quarterly Deposit Validation cases.
Expected Value | Description | Example |
Expected Regulated Tax Rate - Retail | The total of the retail state and local excise + sales tax rate as a percentage | If state and local excise tax = 15%, and sales tax = 7%, the user would enter 22%. |
Expected Regulated Tax Rate - Wholesale | The total of the wholesale state and local excise + sales tax rate as a percentage | If state and local excise tax = 15%, and sales tax = 7%, the user would enter 22%. |
Expected Unregulated Sales Percentage | The percentage of the client’s total sales that is NOT regulated. | If a retail store typically makes 32% of their sales on merchandise and other non-regulated inventory, enter 32%. |
Expected Unregulated Tax Rate | Sales tax rate for unregulated sales as a percentage | If the jurisdiction has a 3% county tax and 6.25% state tax, the user would enter 9.25%. |
When enabled, values entered in the "Expected Regulated Tax Rate [Retail / Wholesale] ", "Expected Unregulated Sales Percentage" and "Expected Unregulated Tax Rate" fields on a client’s cannabis industry license will display on the MDV/QDV case. This will allow FI users to quickly compare expected deposit behavior to client’s actual recent deposits.
If this functionality is enabled, estimates will be used when the following conditions are met:
- A valid trace sales API key or UBI is entered for the license location(s) selected AND sales are reported
- Tax rates / unregulated sales rate entered for location(s)
The estimated values will be used to calculate values in the Monthly or Quarterly Deposit Validation cases. An FI may choose to still require monthly sales reconciliation for specific entities OR may elect to manually request monthly sales reconciliation if an entity’s tax/ unregulated sales need to be confirmed. In this situation, estimated values will be provided to the client in the Monthly Sales Reconciliation case and the client user may confirm or override the estimated values.
If actual values are entered, these will be used in place of the estimated values.
A new Quick Jump page, Location Financial Detail, will display any estimated and actual (if available) values.
Please contact your Account Manager to enable this configuration.
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