Taxnexus Vocabulary

Taxnexus API uses a nomenclature that needs to be defined so we can understand what we are talking about!

  • API Consumer — The IT system that connects to Taxnexus as a client. For example, a cloud-based POS system is an API Consumer. A developer who is integrating a custom on-premises with Taxnexus API is also an API Consumer.s
  • Rating Engine — The external tax rating engine used to generate rating ingests. The Taxnexus rating engine is used for all internal ratings. When an implementation caches its calculation of the taxes and uploads batches, then that OEM system is the Rating Engine.
  • Rating Ingest — Every time Taxnexus acquires transactional tax data it is associated with a Rating Ingest record. Ingest events happen when invoices are interactively rated one at a time. Ingest events also happen when a batch of invoices or externally-collected tax data is added to Taxnexus.
  • Tax Detail Records — The “atomic-level” detail records generated by the tax rating procedure. For each invoice line item, one or more tax detail records are generated according to the requirements of the tax regimen being applied to the invoice line item.
  • Tax Regimen — All information associated with a tax, including the rate, frequency of collection, taxing authority, payment information and penalty information.
  • Taxing Authority — The governmental body that has been given the authority to levy a tax.
  • Taxnexus Code — The code used to indicate what tax regimen should be applied to any type of merchandise or service.
  • Taxnexus Tax Type — The database record created by Taxnexus that represents a single instance of a tax regimen. When a tax regimen is altered by an authority, a new instance of the tax type is created in order to track remittances made under all tax types.
  • Tax Rating — Used as both a noun and a verb. To “rate an invoice” means to run an invoice through a tax rating algorithm and output the tax detail items. A “tax rating” refers to the output of the tax rating algorithm, i.e. the tax detail records.