AP Journal Taxes Tab

Purpose:

This tab provides an alternative method of recording the tax specified on Vendor invoices instead of using the General tab to do so. The taxes entered on this Tax Tab will be written to the Tax History table’s ‘Tax Amount AP’ fields where they will be available for enhanced sales tax history reporting. However, the taxes due the Vendor that are entered on this tab will NOT impact Job Costing in any way.

If you wish tax due the Vendor to impact job costing:

1. (Preferred) If you flag the Job Cost field in the Sales Tax Group, the anticipated tax and tax base will automatically be posted to the Job Costing (for cost and markup) then job or work order related PO items are receipted. You would then use the AP Journal Taxes Tab to record the actual tax on the Vendor’s invoice.

Or

2. The taxes may be entered in the old way on the General tab, referencing a specific Job.

Usage:

In Version 9.0 and above, the system uses the Sales Tax Authority's default GL Expense Account (when available) for sales tax paid.

Taxes may be added to this tab in two ways:

1. The Add Tax Button on the Main Tab image\addtaxauth.gif

If the Tax Group Id field is completed, clicking this button defaults in one line on the Tax Tab for each tax authority in the Tax Group. The system also defaults in the Tax Base from the Total Entered field. The exact Tax amount may be adjusted by the user if needed to match the Vendor’s invoice exactly.

When clicking the Add Tax button, the user will receive an error message if the Invoice Total (entered directly by the user) does not exceed the Invoice Entered (calculated by the system). Also, if a line is generated to a Tax Authority with a graduated rate, Tax Authority Id, GL Account, and Tax Base are completed so that the user can easily complete the information from the Vendor’s invoice.

2. Adding the Tax Lines Manually

In general, your procedure would be to:

1. Pick a Tax Authority.
2. Record the Tax Base according to the vendor's invoice.
3. Correct the Tax Amount to match the vendor's invoice...only if necessary.

Note that if multiple authorities are due taxes (e.g., city and state), they must be entered separately.

Important Fields:

Tax Authority Id:
Enter the Taxing Authority Id or double-click to select from a list.

GL Account:
The expense account to be debited for this tax. This field defaults from the Tax Authority.

GL Entity:
The GL Entity for which this tax expense was incurred. This field should be entered if your firm departmentalizes or tracks profit centers. This field defaults from the PO but may be changed by the user.

Tax Base:
The dollar amount subject to taxation: a warning will be displayed if the amount that you enter exceeds the amount you entered for the vendor’s invoice. You may enter this field or, alternately, you can enter the Rate & Tax and the system will calculate the Base accordingly.

Rate:
The Tax Rate will default from the Tax Authority unless it uses graduated rates. You may enter this field or, alternately, you can enter the Base & Tax and the system will calculate the Rate accordingly.

Tax:
The amount of the tax assessed by this Authority. You may enter this field or, alternately, you can enter the Base & Rate and the system will calculate the Tax accordingly. If a new Tax Amount is entered, the system will ask the user if the Tax Base should be recomputed.

Description:
May be used to briefly describe this entry.

Tax Authority Name: GL Account Name: GL Entity Name:
These display-only fields default from the Tax Authority record, and will help the user verify that the fields on this tab have been entered correctly.