Entering Use Taxes
To record a use tax you pay to a tax authority instead of a supplier, assign a use type tax name to the invoice distributions that are taxable by the use tax. Payables records the tax you owe the tax authority based on the use tax name's tax rate and account. You do not create a tax distribution for the use tax, because tax distributions record supplier liabilities.
To enter use taxes for an invoice:
In the Tax Name field, enter a use type Tax Name or accept the supplier site default, if applicable.
2. Enter invoice distributions using the method of your choice: purchase order match, Distribution Set, or manual entry.
3. Choose Distributions to navigate to the Distributions window. For each distribution you enter with an Item, Freight, or Miscellaneous type, Payables defaults the tax name. The Tax Name indicates that the distribution is taxable. If you have a tax-exempt distribution, clear the Tax Name field.
4. Complete invoice entry and save your work.
5. To review your use tax liability, run the Use Tax Liability Report.
