Entering Tax Information
Receivables lets you enter and review tax information for your transaction lines in the Tax window. If the profile option Tax: Allow Manual Tax Lines is No, you can only review the tax lines Receivables automatically creates; you cannot manually enter or delete tax lines in this case. Additionally, you cannot assign a tax code that must use inclusive tax to a manually entered tax line. If Allow Override is set to Yes for an inclusive tax code, you can assign it to a manually entered tax line, but you cannot use it as an inclusive tax code.
For each invoice line, you can assign multiple tax codes and calculate compound taxes. Receivables automatically recalculates your compounded tax amounts whenever you save your changes or move to another tax line.
You cannot review tax information for a line if the standard line type is either 'Freight' or 'Charges' or if the transaction is a chargeback.
Prerequisites
To enter or review tax information for a transaction or transaction lines:
1. Navigate to the Transaction or the Transactions Summary window.
2. Query the transaction to view.
3. To enter or review tax information for this transaction, choose Tax.
To enter or review tax information for a specific invoice line, choose Line Items, select the line to view, then choose Tax.
Suggestion: To enter or review tax information for all of your transaction lines, open the Tax for All Lines alternative region.
4. Enter a Tax Code (optional). You can change an automatically generated tax code if the profile option Tax: Allow Override of Tax Code is set to Yes. Receivables calculates the associated Tax Rate and Amount when you save your work or move to the next invoice line. You can change the Tax Rate if the tax code is an ad hoc tax code and the profile option Tax: Allow Ad Hoc Tax Changes is set to Yes.
5. If you entered an ad hoc tax code, enter a tax Rate for this line (optional). If this is a standard tax line, the default tax amount is the Unit List Price of the standard memo line adjusted for any currency differences. You can change the tax Amount if this is an ad hoc tax code and the profile option Tax: Allow Ad Hoc Tax Changes is set to Yes. If you change the tax amount, Receivables changes the tax Rate.
Note: If you change the tax code for a line, Receivables will display the new tax rate and amount, regardless of whether this tax code is used to calculate compound tax. If AutoAccounting depends on tax code and you change this value, Receivables displays a pop-up window asking if you want to rerun AutoAccounting for this invoice line. If you choose Yes, Receivables reruns AutoAccounting and changes your tax account for this invoice line.
If you did not enter an ad hoc tax code, you cannot enter a Tax Rate or Amount. If you enter a non ad hoc tax code, Receivables calculates the Tax Rate and Amount when you save your work.
Attention: You can review tax exemptions for a line in the Lines window. See: Lines Window Field Reference.
See Also
Tax Window Field Reference
Overview of Tax
Calculating Tax
Overview of Receivables Tax Reports
Receivables Tax Reports
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