What happens if an inclusive tax is calculated on my external tax transactions?

For an inclusive tax, the item line amount includes the tax amount. As a result, the item distribution entered in the spreadsheet differs from the item line amount after tax calculation.

You can control how the application handles this variance. Use the Inclusive Treatment for Calculated Tax options in the configuration owner tax options. Here are options you can select:

• Adjust: Adjusts the item line distribution to match the line amount.

• Error: Stops processing the transaction.

Note: This option applies only when you upload transactions with specific accounting distributions using the spreadsheet and an inclusive tax is calculated.