Effective January 1, 2021, the Minnesota Department of Revenue will administer the Nobles County 0.5% transit sales and use tax.
Changes to the sales and use tax rate will apply to sales made on or after January 1, 2021 (in addition to all other taxes in effect). Local sales tax applies to retail sales made and taxable services provided within the local taxing area (county/city limits). The tax applies to the same items that are taxable under the Minnesota sales and use tax law.
Purchase Orders entered prior to January 1, 2021
Agencies that enter purchase orders prior to the January 1, 2021 tax effective date will have the old rate calculated, and they will need to update their purchase orders.
Purchase Orders entered on or after January 1, 2021
Agencies that enter purchase orders on or after January 1, 2021 will calculate the new tax rates for each county/city. Existing purchase orders and/or their vouchers will need to be adjusted to pay the correct tax if delivery occurs after various dates. Please note that the dates will be different, based on whether goods or construction materials are being delivered. Check the tax notice for the affected city for the correct dates.
For assistance in changing the sales tax on a purchase order, please consult the Update Sales Tax Settings on Purchase Orders Quick Reference Guide.
Impact of New Local Tax
Please see the Minnesota Department of Revenue tax notice for the appropriate city or county for guidance in handling purchase orders and payments during the transition period.
Impact on Accounts Payable
• If the Invoice Date is on or after the tax effective date, vouchers entered in SWIFT on or after the tax effective date will calculate the new tax rates for each county/city.
• If the Invoice Date is before the tax effective date, SWIFT will exclude the new tax rates.
Please review the tax calculation carefully prior to payment on all vouchers with Ship To locations within these jurisdictions.
Impact on Purchase Orders
SWIFT will be updated with the new tax codes for all existing Ship To addresses located in the affected cities.
• New purchase orders created on or after January 1, 2021 will calculate the new rate of tax for the ship to addresses within those counties/cities.
• Existing purchase orders may or may not need to have the tax code updated on the PO if the payment can be processed during any allowed grace period(s)—again, see the general notice for each county/city.
Previously, any Ship To addresses in affected cities may have used the tax code of 0000, State Tax only. To calculate the new combined rate, state and local tax rate, the tax code(s) on the purchase order must be updated to the new tax code(s) from the 0000 tax code. Because of the various transition rules, these codes will not be updated by SWIFT and must be updated by the purchase order buyer.
This Week's FAQ: How do I troubleshoot issues with Bilateral Netting?
Question: What is bilateral netting, and how to I troubleshoot issues related to this process in SWIFT?
Answer: Bilateral netting refers to processing interagency transactions in SWIFT by automatically offsetting interagency Accounts Payable (AP) vouchers against open interagency Accounts Receivable (AR) invoices.
Interagency vouchers net when the following criteria are met:
• The Supplier ID on the voucher matches the Business Unit that sent the invoice (bill), and the Customer Number on the invoice matches the Business Unit generating the voucher/payment.
• The Invoice Number on the voucher and the bill match. (Bilateral netting requires a case-sensitive match.)
• The Amount on the voucher and the bill match. (Do not submit a voucher for a partial payment.)
How to identify interagency vouchers that fail to net and pay
To identify interagency vouchers that are failing to net and pay, run the following query:
Unpaid Interagency Vouchers query: M_CM_GBL_INTAGCYAP_UNPAID
To identify why interagency vouchers are failing to net, run the following two queries to return a list of open SWIFT AR interagency invoices (for which an agency is the customer):
Interagency Netting by Budget Year: M_CM_GBL_INTERAGENCYPMTS_BFY
Interagency Netting by Fiscal Year: M_CM_GBL_INTERAGENCYPMTS_FY
You can compare the results of these two queries against the results of the Unpaid Interagency Vouchers query to identify mismatches in Amounts or Invoice Numbers, which may prevent vouchers from netting. Vouchers will also fail to net if the billing agency fails to create an AR transaction or closes the AR invoice in SWIFT.
Make sure to reach out to the contact listed on the invoice or the billing agency if a voucher is failing to net due to a missing AR transaction.
For further assistance to resolve any bilateral netting issues, please contact the SWIFT Help Desk. (See SWIFT Help Desk contact info below.)
The SWIFT training team is offering online training through webinars, one-on-one sessions, and video tutorials.
To find and enroll in SWIFT webinars, open the Self Service or Administrative Portal and select the ELM tile. On the Learning Management page, select Find Learning on the left menu. On the Find Learning page, enter “SWIFT” in the Description field and choose Search. Seats are available in the following webinars:
Introduction to SWIFT: Navigation
December 16, 2020
9:30 am to 11:30 am
Introduction to SWIFT: Reporting
December 23, 2020
9:30 am to 11:30 am
You can find reference guides on all modules in SWIFT on the Training Guides and Resources page.
Contact the SWIFT Help Desk for any questions, concerns or issues you have with SWIFT:
651-201-8100, option 2 or by email SWIFTHelpDesk.MMB@state.mn.us Hours: 7:30 a.m. to 4:00 p.m., Monday through Friday; closed holidays. When emailing the SWIFT Help Desk, be sure to include all details regarding the issue.
Information to include with your message:
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