Tax Liability Account (4815)

The billing AAI number 4815 for the tax liability account is optional. This billing AAI defines the tax liability account that the system assigns to the accounting entry. The tax amount from the workfile transaction is credited to this account. If you do not set up this billing AAI, the tax amount will be credited to the revenue account that is set up for billing AAI 4811 (Actual Revenue).

You use this billing AAI to distribute the sales tax or PST (provincial sales tax) independently of the revenue when you generate invoice journal entries. You use the accounts receivable AAIs to distribute VAT or GST (goods and services tax). The system does not enable reallocation rules with this billing AAI.

Note: When Vertex is active and the Billing AAI Control field (ACCO) on the Contract Billing Line Detail Revisions form is set to 0 (Revenue Account), the sales tax amount is recorded to the RTxxxx AAI with the exception of time and material, burden, and component billing line.