So you put a sales tax plugin on companies websites like a avalarra or taxify. KPMG has there own in-house solution they sell now too. I just assumed ERP's were configured to correctly pull sales tax from tables once you entered ship to.
Bit more complex then that... and by bit more I mean a lot more haha. Sadly sales tax isn't as simple as using the ship-to. All of these can play a factor in determining your jurisdiction, the rate, and if it's taxable or not: Ship From, Ship To, Point of Order Acceptance, Product (some products simply aren't taxed such as groceries in TX), Buyer (exemptions), Seller, Date of the Invoice (Tax rates change by date)... plus you have to configure the software to determine where your company is required to collect.
A good example I find is IL - It's a Point of Order Acceptance state. If I order a product from Widget Inc - and they ship it from their warehouse in Bloomington, IL to me in Chicago, IL it doesn't necessarily get taxed based on either of those, but rather the IL jurisdiction in which they "accept" the order into their system... Which yes, often times can be the same as the Ship-From, but it isn't always.
Tables? Nope. Not in the slightest heh - well, I guess any database can be referred to as "tables" to a certain extent. But the two most common solutions are
Vertex and
OneSource. Both are the two main players for any large Fortune 500 company as far as sales tax. Both release multiple updates every month - because thats what it takes to keep up with the latest in law changes, rate changes, etc.
So yeah, ERPs in and of themselves have absolutely nothing configured as far as sales tax. Honestly I've kinda wondered why SAP/Oracle haven't simply bought out one the solutions I mentioned above, it would serve them well especially after the SCOTUS passed
Wayfair v. South Dakota.
My one experience with implementing tax engines to a website was that the tax system was connected to the back-end order management system as well as the front-end website. The reality is though, the tax amount you see on websites is really just a quotation - The actual tax amount is handled by the order management system because your tax rate is based on when the item ships - not when it is ordered.