Prorating Tax
You can use the prorate feature to select invoice distributions for which you want Payables to automatically distribute tax. Prorated tax amounts are applied by default to the same GL account as the non-Tax type distributions rather than the GL account associated with the Tax Name.
Attention: If you are prorating tax and you use any other features that automatically create tax distributions, remove all automatically calculated tax distributions before you prorate.
Prerequisite
To prorate tax:
1. In the Invoices window enter all basic invoice information. See: Entering Basic Invoices. Do not enter a Tax Name or Tax Amount.
2. Enter invoice distributions using the method of your choice: purchase order match, Distribution Set, or manual entry. Do not enter Tax Names for the distributions and do not enter Tax type distributions. If you are matching to a purchase order shipment, you have the option of prorating directly in the Match to PO window, without navigating to the Distributions window. If you are matching to a purchase order distribution, prorate tax directly in the Distributions window.
- Purchase order match. In the Match to PO window, check the Prorate check box for the shipments to which you want to prorate tax. When you check the check box, Payables displays the Prorate window.
Payables does not create the proration distributions until you choose Match to save your work. Notice that Payables displays a Proration region for each shipment. If you want to change the proration amounts, uncheck the Prorate check box to clear the amounts. You can reenter the proration amounts by checking the Prorate check box again.
- Distribution Set or manual entry. Choose Distributions to navigate to the Distributions window. Select all distributions you want to prorate to. Select Prorate. Payables opens the Prorate window.
3. In the Prorate window, select Tax and enter a Tax Name and Amount. Optionally enter a Description Prefix, if you want to prefix the tax distribution descriptions with text of your choice. Payables constructs the descriptions of the tax distributions by applying the prefix to the description of each distribution you prorated to. The default description prefix is "Created by Proration."
4. Choose OK to have Payables prorate the Tax Amount you entered to the distributions. Payables automatically creates tax distributions for you and assigns the Tax Name to the invoice distributions to which you prorated the tax.
See Also
Selecting Multiple Records
Prorating Freight and Miscellaneous Charges
If you use Automatic Tax Calculation, disable it for this invoice. See: Disabling Automatic Tax Calculation.