Edit Taxes on an Invoice, Debit Note, or Credit Note
Before
you start
- Display in Invoice Entry the document whose taxes you want to change.
- Decide whether you want to enter taxes manually or let Accounts Payable calculate all taxes for you.
Do
you want to let Accounts Payable calculate all tax amounts for you?
Select Calculate for the Tax Amount and the Tax Base options on the Taxes tab on the Invoice Entry form. In a multicurrency system, if the tax group uses a different currency than the vendor, you can also select Calculate for the Tax Reporting Amount.
You can specify Calculate as the default for Accounts Payable on the Transactions tab of the A/P Options form. Accounts Payable then automatically calculates all taxes when you add or save an invoice.
You can change the tax calculation for particular invoices as follows:
- To change the vendor’s tax class for the invoice, use the Taxes tab on the Invoice Entry form.
- To change the tax group for the invoice, use the Taxes tab.
If the tax group does not use the same currency as the vendor, Tax Reporting fields appear. You can change the rate type, rate date, and exchange rate for the tax reporting currency, and let Accounts Payable calculate the Tax Reporting amounts for each authority.
- To change the tax class for a detail, select the detail, and then click the Account/Tax... button or press the F9 key. Edit the detail tax class on the Detail Accounts/Taxes.
- Change the tax rates in Tax Services.
Do
you want to enter tax amounts manually?
On the Taxes tab on the Invoice Entry form:
- Clear the Calculate Tax option and enter tax amounts manually (or use the Calc. Taxes button). You can then prorate the tax you enter and allocate it to invoice details.
- Clear the Calculate Tax Reporting option if you want to enter tax reporting information manually for the invoice and its details.
Accounts Payable does not calculate any tax for the invoice unless you click the Calculate Taxes button on the Taxes tab.
To change tax amounts for a document:
- If you need to change the vendor's tax group for this document, click the Taxes tab.
- Select the vendor's tax group (invoices, credit notes, and debit notes). The tax group assigned to the vendor record is displayed automatically, but you can choose another tax group. In a multicurrency ledger, if the tax group does not use the vendor's currency, Tax Reporting fields appear.
- Choose the tax entry method. In the Tax Amount field and/or the Tax Base field, select one of the following:
- Calculate — to have Accounts Payable calculate tax amounts or tax bases for you.
- Do not enter tax amounts on this tab because the program calculates them for you.
- A Tax Included column appears beside the Vendor Tax Class column. Use the column to specify whether taxes are included or excluded in the amounts you will distribute in the detail distribution grid.
- Check the Vendor Tax Classes. If they are not correct, use the Finder to select the correct classes.
- Distribute — if you want to enter the total tax for each tax authority manually, then allocate tax amounts to details automatically using the Distribute Taxes button.
- Enter — if you want to enter all tax amounts (tax totals and detail taxes)
If you choose Calculate as the entry method for the tax amount and Distribute or Enter for the tax base, the program will use the tax base to calculate the tax amount automatically.
If you select Calculate or Distribute as the tax entry method, you cannot directly edit tax amounts for distribution lines, but you can change tax classes.
Note: You can:
- Use the Calculate Tax button to calculate the tax for the document.
- Use the Distribute Taxes button to prorate the total tax amounts for individual document details.
- If you enter tax reporting amounts manually, use the Derive Rates button to calculate the implicit exchange rate for the tax reporting currency.
To change taxes for an invoice detail:
- On the Document tab, select the distribution line, then click the Account/Tax button. Make the changes in the Detail Accounts/Taxes form that appears.
- Click the Taxes tab to check tax amounts for the document and compare the totals on the screen with the totals on the source document.