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 only taxed using the Non-Food State and the Non-Food City tax 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.

•County Tax does not have a "Food"/"Non-Food" variation. Only State and City taxes support the "Food"/"Non-Food" designation.

 

Matrix Code Assignment Rules

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

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

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

 

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

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

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

 

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

 

•The Customer file County Tax % is always just "County Tax". If the 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.