The item matrix code can be used for matrix code pricing, defining items that should be charged non-food tax, or as another way to group items for reporting purposes. Up to 2 characters may be entered for the item's matrix code.

 

Matrix Code Pricing

Matrix code pricing requires distributors to assign matrix codes to each of their item's and to each of their customers. Markup percentages are then defined, using the Price Matrix Maintenance utility. The markup % of the item is determined by the percentage value that is defined in the Price Matrix, where the customer and item matrix code intersect.

 

Using the Matrix Code for tax purposes

Some distributors use the matrix code to define whether an item is a food item or a non-food item.

 

•Food items are only taxed using the State, County and City rates. If an item should be designated as a Food Item set the matrix code to 1.

 

•Non-Food items are taxed using the Non-Food State, Non-Food City and Non-Food County rates. If an item should be designated as a Non-Food Item set the matrix code to 2.

 

Using Non-Food Tax

If non-food tax is going to be levied, items that are considered non-food must be configured with the number "2" must entered in the item's Matrix Code field.

 

State, City and County Taxes have "Food"/"Non-Food" variations that support the "Food"/"Non-Food" options here.

 

State, local and county Sales Taxes are applied independently and not considered a food or non-food tax

 

Matrix Code Assignment Rules

•When the Matrix Code value is "1" the item is a "Food" item and:

▪"Sales Tax %" is the "State Food Tax".

▪"City Tax %" is the "Local Food Tax".

 

•When the Matrix Code value is "2" the item is a "Non-Food" item and:

▪"Non-Food State Tax %" is the "State Non-Food Tax".

▪"Non-Food City Tax %" is the "Local Non-Food Tax".

▪"Non-Food County Tax %" is the "County Non-Food Tax".

 

•When Matrix Code is something other than "1" or "2" then Sales Tax % and City Tax % are applied to all items for that customer (if non-zero). The "Non-Food State Tax %" and "Non-Food City Tax %" values are ignored.

 

•County Tax % is always just "County Tax". If County Tax is non-zero it applies to all items for that customer.

 

Using the Matrix Code for item grouping

Some distributors use the matrix code as another means of grouping items together, similar to an item class. Many reports can be configured to only show items with a certain matrix code. Reports can also be configured to exclude an item with a certain matrix code as well.