A/P Detail Taxes Screen (Invoices)

The estimated amount that you will withhold for a detail to be remitted to a tax authority on behalf of the vendor.

This field shows the tax on retainage calculated for a selected detail on an original invoice, credit note, or debit note.

This field appears on original documents to which retainage applies. It shows the amount (before included taxes) used to calculate tax on retainage, if the tax will be reported when you post the retainage document.

Two factors determine when tax on retainage is reported:

• Your choice for the Report Tax option for Accounts Payable (on the Retainage tab of the A/P Options screen):

  • At Time Of Original Document. If you select this option, Accounts Payable calculates and posts tax on retainage when you post the original document, regardless of the tax reporting options you select in Tax Services for the tax authority.
  • As Per Tax Authority. If you select this option, Accounts Payable respects the selection for the Report Tax On Retainage Document option for the tax authority.
• The setting for the Report Tax On Retainage Option for the tax authority, in Tax Services.

  The tax authority may specify that no tax on retainage will be calculated (No Reporting), or that tax will be calculated and posted either when you post the original document or when you post the retainage document.

Note: A retainage tax base does not apply if tax on retainage is reported when you post the original document.

If a tax amount becomes a reverse charge, the amount is shown in this field.

Reverse chargeable tax amounts owed to a tax authority become reverse charges if the Reverse Charges Base for the tax authority is above the reverse charges threshold amount for the tax authority.

Tip: You can change the amount in this field if you select Enter or Distribute in the Tax Amount field on the Taxes tab of the A/P Invoice Entry screen.

If you selected Enter as the tax entry method, enter the amount of each tax that is listed on the invoice. If a tax does not appear on the tab, you likely selected the wrong tax group for the document.

If you selected Calculate as the entry method for the tax amount and Distribute or Enter for the tax base, the program uses the tax base you enter to calculate the tax amount automatically.

The tax group you specify on the Taxes tab of the A/P Invoice Entry screen determines which tax authorities appear.

Tax authorities are the taxing bodies, such as federal, state, county, provincial, or municipal governments, that levy taxes in the areas where your company buys products.

If your business has a head office and branch offices, different taxes may apply in the different geographical locations.

This is the amount (before included taxes) used to calculate tax for the tax authority.

Note: On original documents to which retainage applies, if the tax on retainage will be reported when you post the retainage document, this is the amount before tax (or the cost, depending on the tax authority) less retainage.

If you select Calculate for the tax base, you cannot change the amount that appears in the Tax Base field.

If you select Enter or Distribute for the tax base, you can enter the amount on which tax is based for the document.

If you select Calculate for the tax amount and Distribute or Enter for the tax base, the program uses the tax base you enter to calculate the tax amounts automatically.

Select Yes if taxes charged by the authority are included in the prices on the invoice you are entering. The default setting comes from the vendor record.

This setting applies to the whole invoice. You can override this setting for single distribution lines on the Document tab.

This field appears only if the Taxes tab specifies a tax group that uses a different currency from the vendor's currency.

It shows the total amount of tax for the detail converted to the tax reporting currency.

If you selected Enter as the tax entry method, this field displays the sum of the tax amounts you entered for the selected detail.

If you selected Calculate or Distribute as the tax entry method and chose the Distribute Tax button, this field shows the tax amount calculated by Accounts Payable for the selected detail.