A/P Document Tax Screen

From all details in the document, the total of reverse chargeable tax amounts owed to a tax authority, if the Reverse Charges Base for the tax authority is above the reverse charges threshold amount for the tax authority. If the Reverse Charges Base is not above the reverse charges threshold amount, this field displays 0.

Tip: You can change the amount in this field if you select Enter or Distribute in the Tax Amount field.

From all details in the document, the total of Tax Base amounts used to calculate reverse chargeable tax amounts owed to a tax authority.

The Reverse Charges Base is shown only if it is above the reverse charges threshold amount for the tax authority. If the Reverse Charges Base is not above the reverse charges threshold amount, this field displays 0.

This field lets you select a tax entry method for the invoice portion of the miscellaneous payment transaction.

If you select 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 select 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 authorities for the tax group assigned to the vendor are listed on the A/P Document Taxes screen.

To change the tax authority for a vendor, you must change the tax group on the vendor record.

The tax base is the amount (before included taxes) used to calculate tax for the tax authority.You use this field to specify the tax entry method you want to use for the invoice portion of the miscellaneous payment.

If you select Calculate in the Tax Base field, you cannot change the tax base for any of the tax authorities that appear in the tax entry table on the A/P Document Taxes screen, nor can you change the tax base for any of the details.

If you select Enter or Distribute in the Tax Base field, you can enter the amount on which tax is based for the document.

If you choose 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.

Accounts Payable uses the amount (before included taxes) as the base to calculate tax for the tax authority..

The tax class is assigned in the vendor 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 you are purchasing.

If necessary, you can change the tax class for the document on the Taxes tab.

Tax groups specify the authorities that tax you when you purchase goods and services from the vendor.

They also determine the vendor tax classes, or the specific classification for a tax, such as which rate is applied or whether you are exempt from tax.

The vendor 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 multicurrency ledgers, if you change the tax group to one that uses a different currency than the vendor, 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.

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

This setting applies to the whole document.

This field appears only if the tax group you specify for the invoice does not use the vendor currency.

Specify a method for entering tax reporting information:

• Calculate. Select this method if you want Accounts Payable to calculate tax reporting amounts automatically using information you specify in the Tax Reporting Currency Rate section.
• Enter. Select this method if you want to enter tax reporting information manually for the document.
  Notes:

  • The sum of the detail amounts must equal the totals you enter for each tax authority. However, you do not need to enter tax amounts manually for the details. You can enter the total tax amounts for the document, and then click the Distribute Taxes button to distribute the total tax amounts to the details.
  • You can also click the Derive Rate button to compute the exchange rate used to convert manually entered tax amounts to the tax reporting currency.
• Distribute. Select this method if you want to enter total tax reporting information manually for the document, and have the program automatically distribute tax reporting amounts to the details.

  Note: You can also click the Derive Rate button to compute the exchange rate used to convert manually entered tax amounts to the tax reporting currency.

This field appears only if the currency for the tax group specified for the invoice is different from the vendor's currency.

This field shows the tax amount converted to the tax reporting currency specified for the tax authority (in Tax Services).

This field appears in the Tax Reporting Currency Rate section of the A/P Document Taxes screen if the currency for the tax group specified for the document is different from the vendor's currency.

The program displays the currency code for the tax group, and you cannot change it.

A description of the specified currency displays in the Currency Description field.

This field appears only if the currency for the tax group is different from the vendor's currency.

Accounts Payable 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, but you can change it.

This field appears only if the currency for the tax group is different from the vendor's currency.

This is the date that is entered with the displayed exchange rate in the Currency screens. You can use the displayed date or enter another date, to display the rate that is entered for the new date.

This field appears only if the currency for the tax group is different from the vendor's currency.

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 specify a valid rate type. A description of the rate type will display in the Rate Type Description field.

You define rate types using the A/P Currency Rate Types screen.

This field appears only if the currency for the tax group is different from the vendor's currency.

It shows the amount of tax to be reported on tax tracking reports for all the tax authorities listed on the invoice.

The total amount that you have withheld for a transaction to be remitted to a tax authority on behalf of the vendor.

Tip: You can change the amount in this field if you select Enter or Distribute in the Tax Amount field.

This is the total amount of tax calculated for the document.