Sales Tax (S) - Voucher and Invoice Entry

When you enter a voucher or invoice with sales tax, the system calculates the tax amount but does not create a separate entry to the general ledger. The sales tax appears only in the voucher or invoice record. For vouchers, the tax is part of the expense, so you do not need to enter the tax in a specific account. For invoices, however, you might want to track the sales tax in a separate account because you must pay it. In this instance, you would need to subtract the sales tax amount from the revenue and enter it separately.

Alternatively, instead of using tax explanation code S, you can use tax explanation code V for the system to record the tax in the account specified by PTxxxx (for payables) or RTxxxx (for receivables), where xxxx is the GL offset that is entered on the tax rate/area.

This example displays the AAI that the system uses and the tables and accounts that the system updates when you enter and post a voucher or invoice. The examples are for a taxable amount of 1,000 USD with a 10 percent sales tax rate.

Example: Voucher Entry

Program	AAI*	Table	Accounts & Fields Updated	F0911 DR	F0911 CR
Standard Voucher Entry (P0411) Creates a voucher	.	F0411 . F0911	Taxable (1,000) Tax (100) Gross (1,100) Expense	. . . 1,100	.
Post General Ledger (R09801) Posts the voucher to the general ledger	FIN - PC	F0911	AP Trade	.	1,100

* DM - AAI = Distribution/Manufacturing AAI (F4950); FIN - AAI = Financial AAI (F0012)