Document Tax Information

The Taxes tabs in Purchase Orders forms display the tax calculations for the document as a whole on purchase orders, invoices, returns, credit notes, and debit notes. For receipts, total taxes are displayed on the Taxes tab for the primary vendor, and on the Additional Cost Vendor Taxes form for secondary vendors.

To see the tax information for an item detail line, you select the detail in the detail entry grid, then click the Item/Tax button. To see tax information for an additional cost detail, you select the additional cost, then click the Cost/Tax button. When you choose the button, Purchase Orders automatically calculates the tax amounts if you have not already posted the transaction or used the Calculate Taxes button.

On the Taxes tab and on the Additional Cost Vendor Taxes form, you use the Calculate Tax button to have the program recalculate taxes using the tax tables from Tax Services after you have changed tax amounts. Taxes are calculated automatically when you choose the Totals tab or when you post the transaction.

Tax information for a transaction total includes:

• Tax authority and description (for the vendor's tax authorities).

• The vendor's tax class and description for each tax authority. You can change to another tax class that is assigned to the tax authority. New vendors you have not yet added to Accounts Payable are assigned tax class 1 and its corresponding description for each tax authority in the tax group selected for the transaction.

Changing the tax amount. You can change the total tax amount to correct small discrepancies, such as rounding errors. (You should correct large errors by updating the tax rates and other information for the tax authorities in Tax Services.)

• The total amount of tax that is included in the cost amounts entered for the vendor. You cannot edit this amount.

• The total amount of tax that is charged in addition to (not included in) the cost amounts entered for the vendor. You cannot edit this amount.

• Tax amount (the total of all tax amounts calculated for the transaction). The total tax amount for an authority is the sum of the tax included and tax excluded. If you change the tax amount, the program adjusts the tax amounts on the details.

Editing taxes for the document vendor

Purchase Orders automatically calculates the vendor taxes on each transaction, using the rates entered in Tax Services for the tax authorities and classes assigned to the vendor in Accounts Payable.

You can change the tax class and the tax amount for each tax authority assigned to the document vendor for a transaction on the Taxes tab of the form you are using.