Tax Inclusive
Receivables lets you enter and display transaction lines either inclusive or exclusive of tax. Tax inclusive indicates that the line amount for an item includes the tax for this item. Tax exclusive indicates that tax is not included in the line amount for this item. When you enter a transaction line, Receivables uses the tax code default hierarchy in the System Options window to determine the appropriate tax code. If the customer, customer site, item, or standard line is assigned to a tax inclusive tax code or tax group, Receivables automatically includes the tax for this line in the line amount. In the Receivables Lines window, the Amount Includes Tax poplist indicates whether the line amount includes tax.
The Amount Includes Tax poplist indicates whether a tax code is inclusive or exclusive. If it is a tax group, the poplist displays 'Tax Code' and you cannot change it.
You can define inclusive and exclusive tax codes in the Tax Codes and Rates window. You can define inclusive and exclusive tax groups in the Tax Groups window.
Receivables windows that can display tax inclusive line amounts include the Lines, Tax, Credit Memos, and Transaction Overview windows.
See Also
Tax Codes and Rates
Tax Groups
Entering Transactions
Accounting for Inclusive and Exclusive Taxes
