Tax Included — with Calculate as the Tax Entry Method

To have Accounts Payable calculate and distribute taxes that are included in the invoice amounts, follow these steps.

1. Enter the total amount of the invoice in the Document Total field on the document tab of the Invoice Entry form. (Make sure you fill in all other information on the tab.)

2. Distribute the total document amount. If some taxes are not included in the invoice total, distribute the document amount net of these taxes (deduct the tax amount from the document total).

   The tax calculation will calculate the portion of each distribution that is tax.

   If you need to change the tax settings of a single distribution, do it before you calculate tax:

   • Highlight the distribution line.
   • Press the F9 key to display a form similar to the one shown in step 5 above.
   • Change the Tax Class or the Tax Included setting.
   • Click OK.

3. Click the Taxes tab.
4. Select Calculate in the Tax Amount field.
5. Check the tax classes. If they are incorrect, use the Finder to select the correct classes.

6. Select "Yes" in the Tax Included column for each tax hidden in the invoice total (by clicking your mouse or pressing the Spacebar in the column). Note that you can only change the Tax Included setting if the Tax Authority allows the tax included option.

   The Vendor Tax Class and Tax Included settings on this tab are the default settings for all distribution lines on the Distribution Information tab.

   You can change the setting for an individual line by selecting the line, then pressing F9. Make any changes you need in the popup form that appears.

7. Click the Distribute Taxes button.

Note: You can edit tax allocations by selecting Enter as the tax entry method on the Taxes tab, then changing the Allocated Tax amount on each distribution line.

Related Topics