Taxes

Specify whether and how to update the Taxes table (F0018) when you post transactions with tax information to the general ledger. Values are:

Blank: Do not update the F0018 table.

1: Update the F0018 table for these tax explanation codes only: V, VT, V+, U, and UT.

2: Update the F0018 table for all tax amounts. The system does not update the F0018 table for transactions with tax explanation code E (exempt).

3: Update the F0018 table for all tax explanation codes including E (exempt).

Specify whether to adjust the tax amount fields, which fields to adjust, and when discounts are taken. The system adjusts the tax amount fields only for transactions with tax explanation code V.

To use this processing option, tax rules must be set up for tax on gross including discount and discount on gross including tax.

Values are:

Blank: Do not adjust tax amounts for discounts taken.

1: Update only the Tax Amount field (STAM).

2: Update the STAM (tax amount), ATXA (taxable amount), and AEXP (extended price) fields.

The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) amount fields 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

Gross amount (extended price) = 1,250.00 USD

Taxable amount = 1,000.00 USD

Tax amount = 250.00 USD

Based on the example, using the adjustment algorithms, the system calculates these adjustment amounts:

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

Specify whether to adjust the tax fields, which fields to adjust, and when the receipt has a write-off. The system adjusts the tax amount fields only for transactions with tax explanation code V. Values are:

Blank: Do not adjust tax amounts for write-offs.

1: Updates the STAM field only.

2: Updates the STAM, ATXA, and AEXP amount fields.

The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) 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