1. NetSuite Integration
  2. Exporting Data From OpenAir to NetSuite
  3. Expense Reports (Expense Reports) Export Workflow
  4. Expense Reports (Expense Reports) Export Workflow Settings
  5. Enable tax export on expense reports

Enable tax export on expense reports

When checked, OpenAir expense reports exported to NetSuite as expense reports or vendor bills include tax breakouts based on the tax locations specified for each receipt or expense item, or (in some cases) on the tax amount values entered manually on the receipt. If your OpenAir account is configured to use tax locations on receipts or expense items, OpenAir calculates and displays the tax breakout for each receipt based on the tax rates for the specified tax location. OpenAir also lets you enter tax amounts manually to override the calculated values. If tax location records in OpenAir are matched with tax code or tax group records in NetSuite, the tax breakout for each expense or vendor bill line in NetSuite is calculated based on the NetSuite tax code or tax group corresponding to the tax location specified on the receipt in OpenAir.

Best Practice Guidelines

Review the following guidelines:

  • Additional setup is required before you can export expense report tax information to NetSuite when exporting expense reports. See Setting Up Expense Report Tax Export.

  • The tax location used on OpenAir receipts must have a corresponding tax code or tax group in NetSuite. The NetSuite Tax Code ID [netsuite_tax_rate_id] on the tax location entity form holds the internal ID of the corresponding tax code or tax group record in NetSuite.

  • In OpenAir, employees enter the gross amount on receipt - the full amount including tax of the expense to be reimbursed. When the expense report is exported to NetSuite and the expense report tax export is enabled, the tax is subtracted from the expense line and NetSuite recalculates the tax based on the applicable tax code or tax group.

    Note:

    This may occasionally result in discrepancies due to rounding precision differences in OpenAir and NetSuite. In OpenAir, tax amounts are rounded to 4 decimal places. In NetSuite, tax amounts are rounded to the currency precision (2 decimal placed for Canadian Dollars, for example).

    You can avoid discrepancy by entering tax amount manually to the currency precision in OpenAir. In the case of Canadian tax amounts, you need to enable this separately. Note See Allow manual override of Canadian taxes on Expense report export.

  • In NetSuite, the information shown on the expense line depends on the applicable tax nexus type:

    • United States nexuses — The tax breakout is not supported on the expense line in NetSuite. The expense line Amount should include tax.

    • Canadian nexuses — The tax breakout is included on the expense line in NetSuite. The Amount is net of tax. You can select a tax code and NetSuite applies the tax rates from the tax code or tax group automatically. By default, you cannot enter a tax amount manually or set a field mapping definition to override the calculated values in NetSuite. However you can configure the integration to export Canadian tax amounts entered manually on the receipt in OpenAir. See Allow manual override of Canadian taxes on Expense report export.

    • Other nexuses — The tax breakout is included on the expense line in NetSuite. The Amount is net of tax. You can select a tax code and NetSuite applies the tax rates from the tax code or tax group automatically. You can enter a tax amount manually or set a field mapping definition to override the calculated value, by default.

Setting Up Expense Report Tax Export

Additional setup is required before you can export tax location information to NetSuite when exporting expense reports.

To set up expense report tax export

  1. If you use the Legacy Tax features in NetSuite, enable the Advanced Taxes feature for your NetSuite account. See Enabling Advanced Taxes (External link to NetSuite SuiteAnswers | Answer Id: 8020).

    Important:

    The Expense Reports (Expense Reports) export workflow is not fully compatible with the SuiteTax feature:

    Note that SuiteTax compatibility testing is currently in progress. You should test the NetSuite <> OpenAir integration with the SuiteTax feature on sandbox accounts before you enable the feature in your NetSuite production account. See Known Limitations of SuiteTax (external link to NetSuite SuiteAnswers | Answer ID: 98937). See also Legacy Tax or SuiteTax.

  2. (Optional) If you export expense report from OpenAir to NetSuite as vendor bills:

    1. In NetSuite, go to Setup > Company > General Preferences

    2. On the Custom Preferences subtab, under the NetSuite OpenAir SRP Integration section, check the Exp Report to Vendor Bill Taxes box.

    3. Click Save.

    In NetSuite, go to Setup > Accounting > Accounting Preferences, and click the Time & Expenses subtab.

  3. Configure OpenAir to use tax locations on receipts or expense items to calculate tax.

    1. In OpenAir, go to Administration > Global Settings > Organization > Tax Options.

    2. Set the Tax calculation method to Tax locations.

    3. Check the Enable tax locations on receipts box.

      Note:

      Skip this step if your OpenAir account is configured to determine the receipt tax location based on the tax location specified for the expense item.

    4. Click Save.

  4. Create tax code or tax group records in NetSuite and matching tax location records in OpenAir.

    1. In NetSuite, set up tax nexus, tax codes and tax groups as required. See topics under Advanced Taxes (External link to NetSuite SuiteAnswers | Answer Id: 8775) and Managing Tax Codes (External link to NetSuite SuiteAnswers | Answer Id: 8031).

      Note:

      NetSuite uses the term nexus to describe a tax jurisdiction or geographic area where you pay taxes and where specific tax rates and regulations apply.

      For employee and vendor records, The tax nexus associated with an employee or vendor record is determined based on either of the following.

      • If you use NetSuite OneWorld, the country of the subsidiary associated with the employee or vendor. Note that vendors can be associated with multiple subsidiaries.

      • Country specified in the shipping address for an employee, or in the billing or shipping address (for a vendor).

    2. In OpenAir, create or modify tax location records so that each tax location corresponds to a tax code or tax group in NetSuite. Enter the NetSuite Tax Code ID and set the Tax rates.

      • The NetSuite Tax Code ID [netsuite_tax_rate_id] on the tax location entity form holds the internal ID of the corresponding tax code or tax group record in NetSuite.

      • Make sure the information under the Tax rates section matches the rate on the corresponding tax code record in NetSuite, or the rates of each tax codes in the corresponding tax group record in NetSuite.

      Important:

      Remember to create or update tax locations in OpenAir when you make changes to tax codes and groups in NetSuite.

  5. If you export expense report from OpenAir to NetSuite as vendor bills, add tax export information to vendor records in NetSuite, on the OpenAir subtab:

    • OpenAir: User Tax Nexus Type [custentity_oa_vendor_tax_nexus] — the type of tax nexus associated with the vendor or the parent vendor. Select one of the following options:

      • United States — Federal Tax and State Tax

      • Canada — Goods and Services Tax (GST) or Harmonized Sales Tax (HST) and Provincial Sales Taxes (PST)

      • Other — Value Added Tax (VAT)

      Note:

      The tax nexus associated with the vendor or parent vendor is determined based on either of the following.

    • OpenAir: Map Exp. Rep. to Parent Vendor [custentity_oa_map_to_parent_vendor] — Check this box to map OpenAir expense reports associated with the corresponding employee record to a parent vendor bill.

    • OpenAir: Map Exp. Rep. to Vendor Bill[custentity_oa_expense_to_vendorbill] — Check this box to map OpenAir expense reports associated with the corresponding employee record to a vendor bill.

    For more information, see Employees (Vendors) Import Workflow.

  6. Add a shipping address to integrated employee records in NetSuite. The shipping address is used to determine the NetSuite Tax Nexus Type for the employee.

  7. Run the integration for the Employees (Employees) import workflow, and the Employees (Vendors) import workflow (if in use) to update the employee records in OpenAir with NetSuite Tax Nexus Type information.

    Note:

    Verify that the demographic form for employees in OpenAir shows the correct NetSuite Tax Nexus Type. If empty, select a NetSuite Tax Nexus Type from the dropdown options. This field is required to export expense report tax information from OpenAir to NetSuite.

  8. In OpenAir, go to Administration > Application Settings > Expenses > Expense report layout and make sure the expense report layout includes the tax information you want to export.

  9. In NetSuite, customize the expense report and vendor bill transaction forms to include the relevant tax information.