Taxes
- 1. Update Tax File
Specify whether and how to update the Taxes table (F0018) when you post transactions with tax information to the general ledger. Values are:
Blank: The system does not update the F0018 table.
1: The system updates the F0018 table for these tax explanation codes only: V,VT,V+,U, and UT.
2: The system updates the F0018 table for all tax amounts. The system does not update the Taxes table for transactions with tax explanation code E (exempt).
3: The system updates the F0018 table for all tax explanation codes, including E (exempt).
- 2. Update VAT Discounts
Specify whether to adjust the tax amount fields, and which fields to adjust, when discounts are taken. The system adjusts the tax amount fields only for transactions with tax explanation code V.
Note: You must select the Tax on Gross Including Discount and Discount on Gross Including Tax options in the tax rules to use this processing option:Values are:
Blank: Does not adjust tax amounts for discounts taken.
1: Updates only the Tax Amount field (STAM).
2: Updates the Tax (STAM), Taxable (ATXA), and Extended Price (AEXP) Amount fields.
The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) amount fields for discounts taken:
Adjustment to the gross amount (extended price) = discount taken
Adjustment to the taxable amount = (taxable amount ÷ gross amount) × discount taken
Adjustment to the tax amount = (tax amount ÷ gross amount) × discount taken. For example:
Tax Rate = 25 percent
Discount Taken = 12.50 USD
Gross Amount (Extended Price) = 1,250.00 USD
Taxable Amount = 1,000.00 USD
Tax Amount = 250.00 USD
Based on the example, using the adjustment algorithms, the system calculates these adjustment amounts:
Adjustment to the Gross Amount = 12.50
Adjustment to the Taxable Amount = 10.00
Adjustment to the Tax Amount = 2.50
To calculate the adjustments, the system subtracts the adjusted amount from the original amount:
Adjusted Gross Amount: 1,250.00 − 12.50 = 1,237.50
Adjusted Taxable Amount: 1,000.00 − 10.00 = 990.00
Adjusted Tax Amount: 250.00 − 2.50 = 247.50
- 3. Update VAT Receipts and W/O
Specify whether to adjust the tax fields, and which fields to adjust, when the receipt has a write-off. The system adjusts the tax amount fields only for transactions with tax explanation code V. Values are:
Blank: Does not adjust tax amounts for write-offs.
1: Updates only the Tax Amount field (STAM).
2: Updates the Tax (STAM), Taxable (ATXA), and Extended Price (AEXP) amount fields.
The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) amount fields for write-off amounts:
Adjustment to the gross amount (extended price) = write-off amount
Adjustment to the taxable amount = (taxable amount ÷ gross amount) × write-off amount
Adjustment to the tax amount = (tax amount ÷ gross amount) × write-off amount. For example:
Tax Rate = 25 percent
Write-off Amount = 12.50 USD
Gross Amount (Extended Price) = 1,250.00 USD
Taxable Amount = 1,000.00 USD
Tax Amount = 250.00 USD
Based on the example, using the adjustment algorithms, the system calculates these adjustment amounts:
Adjustment to the Gross Amount = 12.50
Adjustment to the Taxable Amount = 10.00
Adjustment to the Tax Amount = 2.50
To calculate the adjustments, the system subtracts the adjusted amount from the original amount:
Adjusted Gross Amount: 1,250.00 − 12.50 = 1,237.50
Adjusted Taxable Amount: 1,000.00 − 10.00 = 990.00
Adjusted Tax Amount: 250.00 − 2.50 = 247.50