Calculating Included Taxes Automatically

You can choose to have Accounts Payable automatically calculate and distribute taxes that are included in the invoice totals.

To calculate included taxes automatically:

1. Open Accounts Payable > A/P Transactions > Invoice Entry.

2. Select an existing invoice, or enter a new one, as usual.

   Before proceeding to the next step, make sure that on the Document tab you have:

   • Entered the total amount of the document in the Document Total field.

   • Distributed the total document amount, either using a distribution set or entering distribution lines manually. Accounts Payable calculates the portion of each distribution that is tax.

     Important! If some taxes are not included in the invoice total, subtract these tax amounts from the document total, and then distribute the net amount.

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

     • Select (highlight) the distribution line.
     • Press the F9 key to display the Detail Accounts/Taxes screen.
     • Change the Tax Class or the Tax Included setting, as required.
     • Click OK.

3. On the Taxes tab:

   • Select Calculate as the tax entry method in the Tax Amount field.
   • Check the tax classes. If they are not correct, use the Finder to select the correct classes for each tax authority.

   • Double-click in the Tax Included column, or press the Spacebar, to select Yes for each tax that should be included in the invoice total, and not listed separately on the invoice.

     Note: You can change the Tax Included setting only if the tax authority allows taxes to be included in invoice totals.

   • Click Distribute Taxes.

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

     Note: Because detail taxes are calculated automatically, you cannot change the allocated tax directly for detail lines on the Document tab. However, you can change the tax class or Tax Included setting for an individual line, as described in step 2.

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