Sales Tax (S) - Purchase Order to Voucher

When you enter purchase orders with sales tax (tax explanation code S), the system uses distribution AAIs (automatic accounting instructions) to record the tax and, if you are purchasing for stock, update the inventory account. These AAIs differ depending on whether you are purchasing for stock and whether you use two-way or three-way matching.

These examples display the AAIs that the system uses and the tables and accounts that the system updates when you run the program specified. All of the examples are for a purchase order in the amount of 1,000 USD with a 10 percent sales tax rate. The system was set up to create the journal entries in detail.