Creating a Tax Control Account
Tax types and tax codes are created separately. Changing the tax control account on the tax type record does not automatically update the tax control account shown on the tax code record. Transactions post tax to the tax control account shown on the tax code record. Editing the tax code record updates the tax control account fields.
To create a tax control account:
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Go to Setup > Accounting > Taxes > Tax Control Accounts.
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If you are using NetSuite OneWorld, select a nexus.
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Enter the name of the tax control account.
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Enter a description of the tax control account.
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Click Save.
After you create a tax control account, you can select this account on tax type and tax code records in the Tax Account field. Tax liability for the tax code is applied to this tax control account selected on the item record.
You can view the tax liability for each tax control account on your balance sheet and other financial reports.
When you inactivate a tax control account, then any tax codes associated with it will no longer be available for selection when you create or edit a transaction record. Also, any existing default tax codes associated with the inactivated tax control account will be invalidated. Be sure to change the default tax codes on the affected nexuses, item records, customer records, and vendor records. Alternatively, you can re-activate the tax control account. For information about how to delete accounts and how to make accounts inactive, see Deleting Accounts and Making Accounts Inactive