This chapter contains the topic:
From General Accounting (G09), enter 27
From G/L Advanced & Technical Operations (G0931), choose Journal Entry With VAT Tax
When you enter a journal entry with tax, you might know the gross amount or the taxable amount of the entry. If you enter the gross amount, the system calculates the taxable amount and the tax. If you enter the taxable amount, the system calculates the gross amount and the tax.
For journal entries with tax, the system calculates the tax based on the tax area. The following restrictions apply to journal entries with tax:
The system posts each journal entry with tax to a single tax authority.
You cannot create model or reversing journal entries with this type of journal entry.
This type of journal entry can be used only for transactions that have a tax explanation code of V or VT.
Entering journal entries with tax consists of the following tasks:
Entering a tax inclusive journal entry
Entering a tax exclusive journal entry
Set up the applicable tax rates, areas, and authorities. See Overview to Setup in the JD Edwards World Tax Reference Guide.
If you have tax on a bank charge, your entry might look like this:
Account Number | Amount | Tax Amount | Ex | Tax Area |
---|---|---|---|---|
7001.8810 | 1000 | 60 | V | BE6 |
70.1110.BBL | 1060- |
The resulting entry to the general ledger would look like this:
Account Number | Description | Amount |
---|---|---|
7001.8810 | Bank Charges | 1000 |
70.1240 | Tax | 60 |
70.1110.BBL | Bank Account | 1060- |
Journal Entry | Explanation |
---|---|
Tax-only journal entries | To enter a journal entry for tax only, provide a tax amount and a tax explanation code of VT. Do not enter a gross taxable amount. |
To enter a tax inclusive journal entry
Figure 17-1 Journal Entry With Tax (Inclusive) screen
Access the gross amount format by pressing F2 if needed.
Follow the steps to enter journal identifiers for a basic journal entry.
For each G/L distribution, complete the following fields:
Account Number
Gross Amount
Tax Amount
Tax Explanation Code
Tax Area
To add the record, do one of the following:
In World Software, press Enter
Field | Explanation |
---|---|
Gross Amount | The gross amount of the invoice payments. This is a total of the gross amounts of all scheduled payments. |
Tax Amount | This is the amount assessed and payable to tax authorities. It is the total of the VAT, use, and sales taxes (PST).
Screen-specific information Leave this field blank to have the system calculate the tax. Also, leave this field blank on the offsetting entry, where the Amount field includes the amount and the tax amount from the preceding lines. Enter the tax in this field for tax-only journal entries. |
Tax Ex Code | A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions. |
Tax Area | A user-defined code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.
Typically, the U.S. sales and use taxes require multiple taxing authorities per tax rate/area, whereas value added taxes often require only one simple rate. |
To enter a tax exclusive journal entry
Figure 17-2 Journal Entry With Tax (Exclusive) screen
Access the taxable amount format by pressing F2 if needed.
Follow the steps to enter journal identifiers for a basic journal entry.
For each G/L distribution, complete the following fields:
Account Number
Taxable Amount
Tax Amount (optional)
Tax Explanation Code
Tax Area
To add the record, do one of the following:
In World Software, press Enter
Field | Explanation |
---|---|
Taxable Amt | The amount on which taxes are assessed.
Screen-specific information If you enter the taxable amount in this field, the system calculates the tax and gross amount for you. |
See Section 34.1, "Journal Entry with Tax (P09106)."