Fields and controls
Buttons
Derive Rate
The Derive Rate button appears on the Taxes tab on the Invoice Entry screen and on the Document Taxes screen in Receipt Entry (for miscellaneous payments), if you specified a tax group for the document that uses a different currency than the customer's currency.
After entering the taxes and tax reporting amounts for the tax authorities, click the Derive Rate button to let the program compute the implicit exchange rate between the customer currency and the tax reporting currency.
Calculate Tax
Click this button to recalculate the tax amount when you change the customer tax class for the invoice.
Distribute Taxes
Click this button to prorate the tax you entered and allocate amounts to the invoice details.
Note: You cannot prorate a tax amount to an authority that uses an exempt tax class.
Calculate Tax
Select this option if you want Accounts Receivable to calculate sales taxes automatically for you.
If you clear this option (for example, if you are adding details that already include tax or are not taxable):
- Taxes are not automatically calculated.
- Tax amounts are not recalculated when you change the tax group or tax classes on invoices, credit notes, or debit notes. You must enter the tax amount manually for each tax authority.
- The following buttons are available:
- Calculate Tax.
- Distribute Taxes.
Calculate Tax Reporting
This option appears if the currency used by the tax group is different from the customer's currency.
Select the Calculate Tax Reporting option if you want Accounts Receivable to calculate the tax reporting amounts automatically using the Tax Reporting Currency Rate information you specify.
Do not select the option if you want to enter the tax reporting information manually for the document and detail lines.
Tax Amount
The Tax Amount field shows the amount of tax calculated for the tax authority on an invoice for which the program calculates tax automatically.
If you are entering taxes manually, the total you enter for the tax authority on the Document Taxes screen must match the sum of the taxes you enter for the document details (on the Detail Accounts/Taxes screen).
Tax Authority
The tax authorities for the tax group assigned to the customer are listed on the Document Taxes screen.
To change the tax authority for a customer, you must change the tax group on the customer record.
Tax Base
The amount (before included taxes) used as the base for calculating sales tax for the tax authority.
Tax Class
The customer tax class is assigned in the customer record and is displayed as the default in this field.
However, for many tax authorities, the tax class varies depending on the purpose of the goods or services being purchased. If necessary, you can change the tax class for the document on the Taxes tab.
Tax Group
Tax groups specify the authorities that tax the customer and assign the customer's tax classes in each authority. (Tax classes determine the specific classification for a tax, such as which rate is applied or whether the customer is exempt.)
The customer's tax group is displayed as the default for the document, but you can assign a different tax group, if necessary.
You can also change the tax class for an authority, but to change tax rates, you must use the Tax Services screens in Common Services.
In multicurrency ledgers, if you change the tax group to one that uses a different currency than the customer, you can choose whether to let the program calculate the tax reporting amount, and you can change the tax type, rate date, and exchange rate for the tax reporting currency.
Tax Reporting Amount
This field shows the tax amount converted to the tax reporting currency specified for the tax authority (in Tax Services).
Tax Reporting Currency
This field appears in the Tax Reporting Currency Rate section of the Document Taxes screen if the currency for the tax group you specified for the document is different from the customer's currency.
The program displays the currency code for the tax group, and you cannot change it.
Tax Reporting Exchange Rate
Accounts Receivable uses this exchange rate to calculate the tax reporting amount in the tax reporting currency.
The program displays the exchange rate specified for the tax reporting currency, rate type, and rate date in Common Services, but you can change it.
Tax Reporting Rate Type
Enter the code for the kind of rate you want to use when converting multicurrency amounts to functional currency. Examples of rate types might be "spot rate," "average rate," and "contract rate."
You must type a valid rate type or select one from the Finder.
You define rate types using the Currency Rate Types screen in Common Services.
Tax Reporting Rate Date
This is the date that is entered with the displayed exchange rate in the Currency screens in Common Services. You can use the displayed date or enter another date, to display the rate that is entered for the new date.
Tax Reporting Total
This field appears only if the currency for the tax group is different from the customer's currency. It shows the amount of tax to be reported on tax tracking reports for all the tax authorities listed on the invoice.
Total Tax
This is the total amount of tax calculated for the document.
Overview
This screen lets you:
- Assign the tax group for the document.
- Check the tax authorities, customer tax class, tax base, and tax amount for the document.
- Change the tax class for the document.
- Recalculate the tax amount when you change the tax class for the invoice.
- Recalculate the tax reporting amounts when you change the tax group for the document.