Do one of the following:
- On the Bank Entry screen or the Bank Transfers screen, enter all information for a taxable detail, set the Taxable status to Yes in the detail table, and then click the Edit
button. - On the Bank Entry screen opened from the Bank Reconcile OFX Statements screen, select the Taxable option, and then click the Edit button.
Fields and controls
Buttons
Calculate Taxes
Click this button to calculate the tax base, tax amount, and tax reporting amount for each tax authority in the detail table. Clicking this button overwrites any amounts you entered manually.
The tax rates entered in Tax Services are used to calculate taxes for each authority.
This button is available only if you clear one or more of the options to calculate taxes automatically:
- Calculate Tax Amount. If you select this option, clicking Calculate Taxes does not change tax amounts.
- Calculate Tax Base. If you select this option, clicking Calculate Taxes does not change tax bases.
- Calculate Tax Reporting. If you select this option, clicking Calculate Taxes does not change tax reporting amounts.
Update Rates
Click this button to calculate and apply the specified exchange rate to the tax summary totals. Clicking this button overwrites any amounts you entered manually.
Calculate Tax Amount
Select this option if you want the system to calculate the tax charged by each tax authority for the selected entry.
Calculate Tax Base
Select this option if you want the system to calculate the tax base for each tax authority.
Calculate Tax Reporting
Select this option if you want the system to convert the tax amount for each tax authority to the tax reporting currency.
Exchange Rate
The rate specified in this field is used to calculate the tax reporting amount in the currency you use to report taxes for your company.
By default, this field displays the exchange rate specified for the tax reporting currency, rate type, and rate date in Common Services, but you can change the rate.
- You can change the exchange rate only if you specify a tax group that uses a different currency than the statement currency.
- If you do not select the Calculate Tax Reporting option, you can click the Derive Rate button to calculate the exchange rate automatically.
Rate Date
Specify the rate date to use to convert the tax amount to the tax reporting currency, if necessary.
Note: You can change the rate date only if you specify a tax group that uses a different currency than the statement currency.
Rate Type
Specify the type of exchange rate to use when converting the tax amount to the tax reporting currency (for example, "spot rate" or "average rate").
- You can change the rate type only if you specify a tax group that uses a different currency than the statement currency.
- You must use a rate type that is defined in the Currency Rate Types screen in Common Services.
Tax Group
The tax group from the bank record (for the bank you are reconciling) appears as the default for a bank entry, but you can change it for a particular entry, if necessary.
If you change the tax group to one that uses a different currency from the bank's statement currency, additional tax reporting fields appear. You can edit the tax reporting fields if you do not select the Calculate Tax Reporting option.
A description of the specified tax group will display in the following Tax Group Description field.
Detail Table
Item Tax Class
For each tax authority in the tax group you specified for the entry, the program displays the item tax class.
The program uses the vendor tax class and the item tax class to find the correct tax rate to apply to the transaction.
Tax Amount
This field displays the amount of tax being charged on the transaction. You can overwrite the amount by clicking the Calculate Taxes button or by selecting the Calculate Tax Amount option.
Tax Base
This field displays the base amount on which taxes are calculated.
Tax Included
Double-click in the Tax Included field to display Yes if taxes for the selected authority are included in the bank entry amount.
Tax Reporting Amount
This column appears only if the currency for the specified tax group is different from the bank's statement currency.
The column shows the tax amount for each tax authority converted to the tax reporting currency. (The tax reporting currency is specified in the tax authority record.)
You can change the tax reporting amount if you do not select the Calculate Tax Reporting option. If you enter a tax reporting amount manually, click the Update Rates button to calculate and display the implicit exchange rate between the tax reporting currency and the statement currency.
Vendor Tax Class
For each tax authority in the tax group you specified for the entry, the program displays the vendor tax class.
The program uses the vendor tax class and the item tax class to find the correct tax rate to apply to the entry.
Overview
Use the Bank Taxes screen to specify tax information for details of taxable withdrawals and bank transfers, including whether to enter taxes manually or let the program calculate taxes automatically.