Entering Expense Reports with Tax Impact in SuiteTax

You can enter an expense report to record expenditures and track information about the expense. For information about expense reports, see Expense Reports.

When the SuiteTax feature is enabled in your account, you can specify taxes on expense reports.

The following tax-related fields are added to expense reports when SuiteTax is enabled:

• Tax fields on Summary box:

  • Tax Total

  • Total tax by tax type

• Tax columns on Expenses subtab:

  • Tax Amount

  • Gross Amount

  • Tax Details Reference

• Tax information on the Tax Details subtab:

  • Nexus

  • Subsidiary Tax Reg. Number

  • Tax columns on the Taxes subtab:

    • Tax Details Reference

    • Name

    • Net Amount

    • Gross Amount

    • Tax Type

    • Tax Code

    • Tax Basis

    • Tax Rate

    • Tax Amount

    • Details

Take note of the following when specifying taxes on expense reports:

• You can specify taxes on an expense report if you have at least the Edit level of the Tax Details Tab permission. For information about SuiteTax permissions, see Roles and Permissions in SuiteTax. Note that the Tax Details Tab permission is set to None for the Employee Center role. So if you are entering the expense report in the Employee Center, you will not be able to enter tax details for the expenses.

• The tax registration fields are not populated by the nexus determination lookup logic, and the tax fields are not populated by the tax engine. The nexus/tax registration number and the applicable taxes for each taxable expense line must be manually entered on the Tax Details subtab. When you save an expense report without tax information, the transaction is considered not taxable and it will not be picked up for reporting.

• Non-reimbursable expense lines are not taxable.

Tax reports are impacted when you specify taxes on an expense report. After saving the expense report, the tax information that you entered is sent to the tax engine for reporting.

Depending on the implementation, expense reports can be part of reporting on third party tax engines. Check your tax engine implementation to make sure expense reports are covered in reports.

To enter an expense report with tax impact:

1. Go to Transactions > Employees > Enter Expense Reports.

2. Select a form to use.

3. Set the values for the fields in the Primary Information section:

   • Exp. Rept # – The expense number will be generated after saving the expense report.

   • Employee – Select the name of the employee who incurred these expenses. If you use NetSuite OneWorld, the Subsidiary field is automatically populated with the subsidiary associated with the employee.

   • Advance To Apply – Enter any advance that should be applied to any reimbursement for these expenses.

   • Purpose – Enter the purpose for these expenses.

   • Date – This field is automatically populated with the current date. Optionally, you can enter a different date.

   • Posting Period – The posting period is based on the date specified in the Date field. This period is subject to change until accounting approval of the expense report. If approval occurs after displayed posting period has closed, the expense report is posted to the first open period.

   • Date Due – If available, enter the due date of the expense report.

   • Complete – Keep this box checked if the report is complete and ready to be submitted for approval and processing. You can no longer make changes to expense reports that are marked as complete. If you intend to make changes to this expense report later, clear this box.

   • If you have the appropriate authority, check the Supervisor Approval, Accounting Approval, or both boxes.

     Note:

     If you have multiple payable accounts, after the Accounting Approval box is checked, the Account field is automatically populated with the default payable account. You can change this account if necessary. For information about setting the default payable account, see Time & Expenses Accounting Preferences under Accounting Preferences.

4. If the Multiple Currencies feature is enabled in your account, check the Use Multi Currency box on the Expenses subtab to show the Foreign Amount, Currency, and Exchange Rate fields for each expense line. These fields enable the entry of expenses in foreign currencies.

   If you cleared the Use Multi Currency box, the multiple currency fields are hidden and the expenses are automatically saved in the base currency.

   Important:

   The rates and converted amounts shown on the expense lines are provided as approximations only. Actual reimbursement amounts will be based on rates at the time of reimbursement.

5. On the Expenses subtab, add line items for expenses:

   • Ref No. – This field is automatically populated with 1 for the first expense line. You can change this number and each new line will use the next successive number.

   • Date – Enter the actual date when the expense was incurred.

   • Category – Select an expense category. For information about creating expense categories, see Creating an Expense Category.

   • Quantity and Rate – These fields appear if you selected a category that requires a rate. Enter the quantity and, if not automatically populated, specify the rate for this expense category. The amount is automatically calculated based on the rate and quantity.

     Note:

     If you use multiple currencies, the foreign amount is used to calculate expense report totals.

   • If the expense was incurred in a foreign currency:

     • Foreign Amount – Enter the foreign currency amount.

     • Currency – Select the currency.

     • Exchange Rate – If not automatically calculated, enter the exchange rate applicable for this expense.

   • Amount – Enter the amount of the expense.

     If you entered a foreign currency amount for this expense, the expense is automatically converted to your base currency amount in the Amount column. This amount is provided as an approximation and may not match the actual reimbursement amount that will be calculated based on the exchange rate at the time of reimbursement.

   • Memo, Department, Class, and Location – Optionally, you can enter a memo, department, class, or location to apply to this expense line.

   • Customer – If this expense is billable to a customer or project, select the customer in the Customer list and check the Billable box.

   • Attach File – You can attach a receipt to each line item. In the Attach File column, select your receipt from the file cabinet or click the New icon to upload a new receipt. You can attach the same receipt to multiple line items. Check the Receipt box if you attached a receipt for this item.

   • Non-reimbursable – Check this box if this item is not reimbursable. Non-reimbursable expense lines are not taxable.

   • Tax Amount and Gross Amount – If this expense line has corresponding tax lines, the values for these fields will be calculated after you enter the tax information on the Tax Details subtab.

   • Tax Details Reference – This field links the expense line to the tax lines on the Tax Details subtab. Use this reference number when adding tax lines for this expense.

   • Click Add.

   • Repeat these steps for each expense line that you want to add to the report.

6. If you have at least the Edit level of the Tax Details Tab permission, on the Tax Details subtab, enter the tax information for the expenses that you entered on the Expenses subtab.

   1. Nexus – Select the nexus that you want to associate with the expense report. This field shows the valid nexuses (tax registrations) for the subsidiary on the expense report.

   2. Tax Reg. Number – When you select a nexus, the corresponding tax registration number is automatically selected in this field. If there is more than one tax registration number for the nexus, the transaction date (in the Primary Information section) determines the tax registration number to be used based on the validity dates set on the subsidiary record. For more information, see Assigning Tax Registrations to a Subsidiary in SuiteTax.

      When you select a different tax registration number, the corresponding nexus is automatically selected in the Nexus field.

   3. On the Taxes subtab, specify the tax information for each taxable expense line.

      1. Tax Details Reference – Select the reference for the expense line where tax should be applied. The values for the Name (category) and Net Amount columns are automatically populated with the values from the Expenses subtab.

         Note:

         You can link the same expense line to multiple tax lines.

      2. Tax Type – Select a tax type. This field shows the tax types for the nexus country.

      3. Tax Code – Select a tax code. This field shows tax codes that use the selected tax type.

      4. Tax Basis – Enter the tax basis for the expense line.

      5. Tax Rate – Enter the tax rate for the expense line.

      6. Tax Amount – Enter the tax amount for the expense line. The value for Gross Amount is automatically calculated based on the values for net amount and tax amount.

      7. Details – Optionally, enter details about this tax line.

      8. Click Add.

      9. Repeat these steps for each taxable expense line.

      10. If you want to delete a tax line, click the X icon for the tax line.

7. When you are finished entering expenses and corresponding taxes, click Save.

Upon saving an expense report with taxes, the tax details are sent to the appropriate tax engine for reporting purposes. No tax engine response is expected after saving the transaction.

General Notices