Jurisdiction Code Encoding for Accurate Tax Calculations
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Solution Overview
Problem
Existing tax calculation solutions face inaccuracies due to fixed character length limitations in storing jurisdiction codes, which cannot accommodate detailed address information like street names and door numbers, leading to incorrect tax calculations across different jurisdictions with varying tax laws and rates.
Innovation Solution
A method involving a jurisdiction code determining service that converts address information into geographic coordinates using a mapping service, encodes these coordinates into a jurisdiction code, and stores it in a fixed-length field, allowing for accurate tax calculations by decoding and extracting detailed address information as needed.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If fixed-length jurisdiction code fields are used, then data storage is simplified and consistent, but the code cannot accommodate detailed address information like street names and door numbers
Solution Approach 1:
The patent segments the jurisdiction code into multiple components: a base jurisdiction identifier and an offset value. The offset value is further segmented into street identifier bits and door number bits. This segmentation allows the fixed-length code to efficiently represent detailed address information without requiring excessive storage space.
Solution Approach 2:
The patent transitions from storing complete address text to storing encoded numeric values (offsets) that represent address information. By changing the dimension of data representation from textual to numeric/encoded form, the system fits detailed address information into fixed-length fields while maintaining the ability to retrieve original address details.
2Measurement precision
If more detailed address information is stored, then tax calculation accuracy improves, but the fixed character length field cannot accommodate the code
Solution Approach 1:
The patent changes the parameters of the jurisdiction code by introducing an offset-based encoding scheme. Instead of storing complete address strings, the system uses compact numeric offsets that reference pre-stored address information. This parameter change reduces the code length while preserving the precision needed for accurate tax calculations.
Solution Approach 2:
The patent introduces an intermediary encoding layer between the fixed-length storage field and the detailed address information. The offset value acts as an intermediary that links the compact stored code to the full address details, enabling both fixed-length storage and high-precision tax calculation.
3Adaptability or versatility
If traditional jurisdiction codes are used, then existing systems are compatible, but tax calculations are inaccurate due to inability to distinguish addresses within same locality
Solution Approach 1:
The patent implements a nested structure where the traditional jurisdiction code is nested within a larger encoded value that includes offset information. The base jurisdiction identifier maintains compatibility with existing systems, while the nested offset components add the necessary detail for distinguishing addresses within the same locality, thereby improving tax calculation reliability.
Solution Approach 2:
The patent performs preliminary encoding of address information into offset values before storage. By pre-calculating and storing these offsets in the fixed-length field, the system ensures that detailed address information is readily available when needed for tax calculations, improving reliability without requiring system changes.
Data Source
AI summary
The present disclosure involves computer-implemented methods, software, and systems for determining a jurisdiction code for an address master data object instance. A computer-implemented method includes receiving an address information from a master data application, converting the received address information into geographic coordinates using a mapping service, generating a truncated geocode using the geographic coordinates, encoding the truncated geocode into a jurisdiction code using an encoding scheme, and storing the Jurisdiction code in a jurisdiction code field of the address master data.