Understanding Distribution AAIs for Taxes

Transactions in the JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Procurement systems use both distribution and financial AAIs. The distribution AAIs are set up in multiple tables, each of which applies to a certain type of transaction. Not all transactions with taxes use the distribution AAIs. you use the Distribution AAIs (P40950) program to set up AAIs for the distribution systems.

This table displays the distribution AAI tables that you must set up to enter purchase orders and sales orders with taxes for the specified tax explanation code. Any other tax explanation codes that you enter on the order revert to the financial AAIs (RT, PT, GT).

System	AAI Table	Description	Tax Explanation Code	Transaction Type
JD Edwards EnterpriseOne Sales Order Management	4250	Tax liability	S	.
JD Edwards EnterpriseOne Procurement	4350	Purchase tax accrual	S	3-Way Match (Inventory)
JD Edwards EnterpriseOne Procurement	4350	Purchase tax accrual	U	3-Way Match (Inventory)
JD Edwards EnterpriseOne Procurement	4355	Received not vouchered tax	S	3-Way Match (Inventory) 3-Way Match (Non- Inventory)
JD Edwards EnterpriseOne Procurement	4355	Received not vouchered tax	U	3-Way Match (Inventory) 3-Way Match (Non- Inventory)

Note: The system also uses the distribution AAIs for tax explanation codes B and C for the sales and use portion of the tax amount.

Each AAI table enables you to set up different general ledger accounts based on the company, document type, and GL category code (offset) that you enter. You enter the same value in the GL Cat field (data item GLPT) for the AAI that you have set up in the GL Offset field in the tax rate/areas. For example, if you had a tax rate/area set up for CO that includes a GL offset TXTX, and you had another tax rate/area ONT that includes a GL offset TXTY, you would set up two distribution AAIs. This example illustrates how the distribution AAIs correlate to the tax rate/area.