Understanding Tax Capture Settings

If you track taxes by pay item and G/L account, use the Invoice and Voucher Company Tax Constants program (P00218) to specify whether the system balances G/L distribution entries with revenue or expense accounts by pay item and tax information (tax rate area, tax explanation code, and tax item number) based on the source transaction in the Customer Ledger table (F03B11) or Accounts Payable Ledger table (F0411).

Note: When you use the track taxes by pay item and G/L account method, the system uses tax information from the voucher or invoice record, not from the general ledger account.

You must select the tax constant for every company in which you want to track taxes by pay item and G/L account. When you set up the tax constant for a company, the system applies the functionality to all programs in which you enter account distribution for invoices and vouchers.

Note: Selecting the tax constant does not affect transactions that existed previously for a company.

The system stores the tax capture constant information in the Company Constants Tag Table (F0010T).