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Damage Waiver Tax Calculation Mismatch

How to resolve issues with damage waiver tax codes defaulting to the incorrect province or Division in Rental Management (Classic).

In This Article

Introduction

This article describes an issue affecting Service, Rental, and Financials (Classic) in which the damage waiver tax calculation defaults to an incorrect tax code when multiple Damage Waiver (DW) codes are configured for a Division. It applies to document entry across Contracts, Rental Quotes, Sales Quotes, Reservations, and Worksheets.

Follow the steps below to understand why this occurs and how to implement the recommended workaround.

Issue

When entering a document for a Customer whose profile has the Damage Waiver setting set to No or Optional, the following occurs:

  1. The system defaults the document’s Charge Waiver flag to No.
  2. Behind the scenes, the system pre-selects the first Damage Waiver code in the Division's configuration list and assigns that first code's tax settings to the document.
  3. If an operator manually checks the Charge Waiver box during document entry and selects a different DW code (e.g., selecting Code 2 - Nova Scotia DW instead of Code 1 - New Brunswick DW), the selected DW code updates, but the underlying tax codes remain locked to the first DW code's tax settings.

Because the system does not automatically recalculate the tax rates when switching DW codes late in the document entry process, incorrect taxes may be calculated unless the operator manually updates the tax information screen.

Resolution

Primary Workaround (Recommended)

Set the Customer’s Damage Waiver setting to Yes via the Customer Information screen:

  1. Open Service, Rental, and Financials (Classic) and navigate to Accounts Receivable → Customer Information. Enter the Customer # of the Customer you’d like to edit and press Enter.
  2. Set Damage Waiver to Yes.
  3. Click “Accept” to save the Customer record.

Why this works: When set to Yes, the system prompts the operator to select the appropriate Damage Waiver code at the very start of document creation (immediately after selecting the Customer). Selecting the DW code upfront ensures that the correct regional tax codes are applied automatically.

If a Customer with a default setting of Yes occasionally declines damage waiver coverage, the operator simply needs to uncheck the Charge Waiver option in the document's additional options screen.

Alternative Workarounds

  • Manual Tax Adjustment: If the Customer profile remains set to No or Optional, operators who enable the Charge Waiver option must click Tax Information on the Damage Waiver window and manually select the correct tax codes for that region.
  • Divisional Configuration Cleanup: In System Maintenance → Configure System Settings → System → Division Parameters → Contract Parameters → Document → Waiver Codes, review the list of eligible Damage Waiver codes for the Division. Ensure the most frequently used regional DW code is listed first, or remove obsolete codes that no longer apply to that Division.