Taxes
- 1. Update Tax File
Specify whether to update the Taxes table (F0018) when you post transactions with tax amounts. Values are:
Blank: The system does not update the F0018 table.
1: The system updates the F0018 table for these tax explanation codes only: V, VT, V+, U, and UT.
2: The system updates the F0018 table for all tax explanation codes except tax explanation code E (exempt).
3: The system updates the F0018 table for all tax explanation codes including tax explanation code E.
- 2. Update VAT Discounts
Specify whether to adjust the tax amount fields when discounts are taken and which fields to adjust. The system adjusts the tax amount fields only for transactions with tax explanation code V.
To use this processing option, you must first select these options for tax rules:
Tax on Gross Including Discount
Discount on Gross Including Tax
Values are:
Blank: The system does not adjust tax amounts for discounts taken.
1: The system updates only the Tax Amount field (STAM).
2: The system updates the Tax Amount (STAM), Taxable Amount (ATXA), and Extended Price (Gross) Amount (AEXP) fields.
The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and extended price (gross) amounts for discounts taken:
Adjustment to the gross amount (extended price) = discount taken.
Adjustment to the taxable amount = (taxable amount / gross amount) x discount taken.
Adjustment to the tax amount = (tax amount / gross amount) x discount taken.
For example:
Tax Rate = 25 percent
Discount Taken = 12.50 USD
Extended Price (Gross Amount) = 1,250.00 USD
Taxable Amount = 1,000.00 USD
Tax Amount = 250.00 USD
Based on the example, the system calculates these adjustment amounts using the adjustment algorithms:
Adjustment to the Gross Amount = 12.50.
Adjustment to the Taxable Amount = 10.00.
Adjustment to the Tax Amount = 2.50.
To calculate the adjustments, the system subtracts the adjusted amount from the original amount:
Adjusted Gross Amount: 1,250.00 − 12.50 = 1,237.50
Adjusted Taxable Amount: 1,000.00 − 10.00 = 990.00
Adjusted Tax Amount: 250.00 − 2.50 = 247.50
- 3. Update VAT Receipts and W/O
Specify whether to adjust the tax fields when a receipt has a write off and which fields to adjust. The system adjusts the tax amount fields only for transactions with tax explanation code V. Values are:
Blank: The system does not adjust tax amounts for write-offs.
1: The system updates only the Tax Amount field (STAM).
2: The system updates the Tax Amount (STAM), Taxable Amount (ATXA), and Extended Price (Gross) Amount (AEXP) fields.
The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and extended price (gross) amount fields for write-off amounts:
Adjustment to the gross amount (extended price) = write-off amount.
Adjustment to the taxable amount = (taxable amount / gross amount) x write-off amount.
Adjustment to the tax amount = (tax amount / gross amount) x write-off amount.
For example:
Tax Rate = 25 percent
Write-off Amount = 12.50 USD
Extended Price (Gross) Amount = 1,250.00 USD
Taxable Amount = 1,000.00 USD
Tax Amount = 250.00 USD
Based on the example, the system calculates these adjustment amounts using the adjustment algorithms:
Adjustment to the Gross Amount = 12.50
Adjustment to the Taxable Amount = 10.00
Adjustment to the Tax Amount = 2.50
To calculate the adjustments, the system subtracts the adjusted amount from the original amount:
Adjusted Gross Amount: 1,250.00 − 12.50 = 1,237.50
Adjusted Taxable Amount: 1,000.00 − 10.00 = 990.00
Adjusted Tax Amount: 250.00 − 2.50 = 247.50