Previous	Next		Contents	Index	Navigation	Glossary	Library

Note: If you want Payables to automatically create tax distributions for you by prorating across multiple distributions, see instead: Prorating Tax.

Payables assigns tax names as defaults based on your Tax Name Defaults hierarchy. See: Defaulting Tax in Payables. You can override these defaults.

During Approval, Payables verifies that you have entered the tax distributions accurately based on the tax rates assigned to the Tax Names you use. See: Tax Amount Verification During Approval.

Entering Tax Distributions Manually

Prerequisite

   You do not use Automatic Tax Calculation, or Automatic Tax Calculation is disabled for the invoice. See: Disabling Automatic Tax Calculation.

   To manually enter sales or user-defined type tax distributions for an invoice:

1. In the Invoices window enter all basic invoice information (see Entering Basic Invoices), but do not enter the distributions yet.

2. If you want Payables to automatically create a single tax distribution, enter a Tax Name and Tax Amount in the Invoices window. Payables will copy these values to the distribution it creates. If you want to create multiple tax distributions, do not enter a Tax Name and Tax Amount; you must enter multiple tax distributions manually.

3. Enter distributions automatically by entering a Distribution Set or by matching to a purchase order, or choose the Distributions button and enter distributions manually. See: Distribution Sets, Matching to Purchase Orders, or Entering Invoice Distributions.

4. Navigate to the Distributions window.

5. If you entered a Tax Name and Tax Amount in the Invoices window, and Invoice Header is the source your Tax Name Defaults hierarchy uses, then Payables automatically enters a Tax type distribution with the same Tax Name and Tax Amount you entered; it does no tax amount calculation.

For each non-Tax (Item, Miscellaneous, or Freight type) distribution, enter a Tax Name, or accept or change the default if there is one. For tax-exempt distributions, enter a zero-percent Sales or a zero-percent user-defined Tax Name. You do not need to create a corresponding zero amount tax distribution.

For each non-zero-percent Tax Name you use for non-Tax distributions, you must have a corresponding Tax type distribution with the same Tax Name. The amount of the tax distribution must equal the sum of the non-Tax distributions with the same tax name multiplied by the tax rate associated with the Tax Name. For example, you enter two Item type distributions, each for $50, and each with a Tax Name that has a 8% tax rate. You must enter one $8 Tax type distribution with the same Tax Name.

If more than one tax is applicable to a non-tax distribution, leave the distribution's Tax Name field empty. During Approval, Payables applies to that distribution all Tax Names that are assigned to tax distributions and that you have not assigned to any other non-tax distribution. For example, an invoice has one Item distribution that is subject to two taxes. Leave the Tax Name blank on the item distribution and enter the two Tax distributions. During Approval, Payables will apply both tax rates to the item distribution to verify that the tax distribution amounts are correct.

6. Complete invoice entry and save your work.