Distributing Invoices, Credit Notes, and Debit Notes

For most invoices you need to distribute two amounts:

• The amount of the invoice net of taxes.
• The tax amount.

You distribute both of these amounts after you enter the document total on the Document tab and tax information on the Taxes tab of the Invoice Entry form.

Including tax in the distribution amount

If you selected Tax Included (tax is hidden in the total on your vendor invoice) and Calculate in the Tax Amount field on the Taxes tab, you distribute the invoice total (the details plus the included tax).

If all your taxes are listed separately, you distribute the amount of the invoice net of tax, then calculate tax on the invoice.

If you select Distribute or Enter as the tax entry method, you always enter the tax amounts on the Taxes tab, then distribute the net-of-tax amount (the rest of the invoice) on the Document tab.

Instructions for distributing invoice and tax amounts

For full instructions for distributing invoice and tax amounts in the Invoice Entry form, choose the appropriate keyword below for your type of tax calculation and distribution:

Manually enter and distribute tax amounts

Use Calculate and Tax Included

Use Calculate when tax not included

Multicurrency ledgers

Note that you distribute all invoice and tax amounts in the vendor's currency. Accounts Payable calculates the functional-currency equivalent to the invoice amount using exchange rates maintained in the Currency forms in Common Services.

You can change the exchange rate, rate type, and rate date for an invoice, using the Rate Information tab in the Invoice Entry form, but you cannot change the vendor currency.