Understanding AAIs for Taxes

If you are required to collect or pay taxes, you must set up the system so that the tax amounts are applied to the correct general ledger accounts. The system applies tax amounts automatically to the account that you specify in an Automatic Accounting Instruction (AAI).

When you set up AAIs for a specific type of tax, such as VAT, specify which accounts you want the system to debit and credit for the tax amount. If you pay taxes in multiple currencies, you need to set up tax AAIs for each company.

The financial systems within JD Edwards EnterpriseOne software (JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable, and JD Edwards EnterpriseOne General Accounting) use different AAIs than the distribution systems within JD Edwards EnterpriseOne software (JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Procurement).

See also:

• "Setting Up Automatic Accounting Instructions" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.

• "Setting Up AAIs for Sales Order Management" in the JD Edwards EnterpriseOne Applications Sales Order Management Implementation Guide.