Tax Auditing Tab of Accounting Company Settings

Use the Tax Auditing tab of Accounting Company Settings to enable the Tax Auditing feature, set up tax code defaults, and choose among related options.

Contents

Field	Description
Enable Tax Auditing Feature	Select this check box to turn on the Tax Auditing feature. This feature lets you enter certain input taxes in DPS and report on taxes from billing invoices and purchase orders. When you select this check box, the following are enabled: All other fields on this tab The Thresholds section, Inputs section, Non-Recoverable Tax section, Tax Code to Include in Basis field, and Tax Currency field (if you use multiple currencies) on the Tax Codes tab in Settings > Accounting > Taxes The Tax Country and Tax Reg. # fields in the Firms hub Tax-related fields for expense categories on the Expense Categories tab of Settings > Expense > Expense Categories Tax-related fields on AP Voucher, AP Disbursements, Employee Expenses, Cash Disbursements, Cash Receipts, Invoice, and Journal Entry transaction entry forms in Transaction Center > Transaction Entry Tax-related information on transaction lists and posting logs in the Transaction Center and on the Employee Ledger report (for taxes entered on employee expense reports) The following reports are available in Reporting > Accounting after you select the Enable Tax Auditing Feature check box: Sales List Tax Analysis You can include the Tax-2 Amount column on the Vouchered Purchase Orders Items report (in Reporting > Purchasing) when the Tax Auditing feature is turned on.
Tax Country Code	From the drop-down list, select the appropriate country code for the country that is collecting the taxes on the goods and services. The tax country code displays on certain tax reports.
Tax Registration Number	Enter your enterprise's tax registration number. This number is assigned by each country for the purpose of tax reporting.
Default Tax Country Code	Select the default tax country code that will prefill for new vendors and clients that you add to DPS.

Default Tax Codes Grid

In this grid, enter the default tax codes to use to calculate taxes automatically for:

• Accounts payable vouchers, accounts payable disbursements, cash disbursements, and employee expenses that you enter in Transaction Center > Transaction Entry.
• Expense reports that you enter in the Expense application.

You can enter as many default tax codes as you need.

Field

Description

Default Tax Codes Drop-down

Click the drop-down arrow on a grid header to complete any of the following actions: To print grid data, click Print. On the Print Preview form, click File > Print to send the grid data to your default printer. To export grid data to an Excel spreadsheet, click Export to Excel. When Microsoft Excel opens, use its features to modify, print, or email the grid data, or to save the spreadsheet file locally. To turn on grouping for a grid, click Enable Grouping. When a field displays with the instruction: "Drag a column header here to group by that column," drag and drop column headers into the field, in the sequence that you want them to display. Not all options are available on all grids.

Grid Toolbar

Field	Description
Insert	Click this option to add a default tax code to the grid.
Delete	Click a row in the grid, and then click this option to delete the default tax code.

Grid Fields

Field	Description
Sequence	When you click Insert to add a tax code to the grid, a sequence number prefills automatically in this field. The sequence number determines the order in which the taxes display on the New File dialog box in Transaction Entry. You can change the number in the Sequence field. If you assign the same sequence number to multiple tax codes, you are warned that the sequence number is already in use. If you proceed anyway, the tax codes will be ordered first by sequence number and then, within the same sequence number, ordered alphabetically or numerically by tax code.
Default Tax Code	From the drop-down list, select a default tax code. Only taxes with an Active status are available in the drop-down list. The drop-down list includes the tax codes that have been set up as input taxes on the Tax Codes tab in Settings > Accounting > Taxes with the Transaction Entry and/or Employee Expenses check boxes selected in the Inputs section of the tab. Default Tax Codes and the Transaction Center The default tax codes that you enter on the Tax Auditing tab prefill on the Transaction Center New File dialog box when you create a new transaction file for accounts payable vouchers, accounts payable disbursements, cash disbursements, and expense reports. The default tax codes are used to calculate taxes for all the transactions that you enter in the transaction file. On the New File dialog box, you can override the default tax codes by adding or deleting tax codes. For any individual transaction in the transaction file, you can override the taxes that have been automatically calculated using the default tax codes. Click the amount in the Total Tax Amount field on the transaction entry form. This opens the Tax Codes dialog box, where you can add, remove, or change tax amounts. For accounts payable vouchers and accounts payable disbursements, if a vendor has a default tax code entered for it in the Firms hub, then the vendor's default tax code is used instead of the default tax code that has the first (or lowest) sequence number on the New File dialog box to calculate the taxes for the vendor voucher or disbursement. Example: A vendor's default code entered in the Firms tab is XXX. The default tax codes entered on the Tax Auditing tab in Accounting Company Settings are AAA (with sequence 5), BBB (with sequence 30), and CCC (with sequence 45). Tax code XXX from the vendor record will override tax code AAA (with sequence 5, the lowest sequence number) when accounts payable vouchers and disbursements are entered in the Transaction Center for that particular vendor. The tax codes used for the transactions for that vendor are XXX, BBB, and CCC. Default Tax Codes and Expense Reports The default tax codes that you enter on the Tax Auditing tab are used to calculate taxes automatically when you enter expense reports in the Expense application. Unlike Transaction Entry, expense reports do not have a New File dialog box that displays the default tax codes. Instead, taxes are calculated for expense items on expense reports based on the following: If you enter an expense category for an item on an expense report and the category has a default tax code entered for it on the Expense Categories tab of Settings > Expense > Expense Categories, then the default tax codes from the expense category are used to calculate taxes. If the expense category does not have default tax codes entered for it, then taxes are calculated using the default tax codes that are entered on the Tax Auditing tab in Accounting Company Settings. If no expense category is entered for an item on an expense report, no taxes are calculated automatically. You can click in the Total Tax Amount field in the expense report entry grid to open the Tax Codes dialog box and manually enter tax codes to calculate the taxes for the item.

Check Boxes

Field	Description
Enable Originating Vendor for Employee Expenses and AP Vouchers	This check box is enabled if you select the Enable Tax Auditing Feature check box on this tab. Select this check box if you want to be able to associate an originating vendor with the line items that you enter for employee expense reports, accounts payable vouchers, and accounts payable disbursements, in addition to the actual employee or vendor who is getting paid. If you do not select this option, you can only track the employee or vendor who will receive payment. This same check box is also in Settings > Expense > Payments. When you update the setting in one location it is automatically updated in the other. For more information about how this feature works, including the fields that are enabled throughout DPS when you turn on the feature, see the "Originating Vendors" help topic.
Require Tax Codes to be used in AP Transactions	This check box is enabled if you select the Enable Tax Auditing Feature check box on this tab. Select this check box to require that users enter at least one tax code for each line item in AP vouchers and AP disbursements that they enter in the Transaction Center.

Tax Region Grid

You must set up tax regions in this grid if you want the drop-down list in the Tax Code fields in AP voucher entry, AP disbursement entry, and invoice billing terms to include only the tax codes that are appropriate for the vendor or client's specific address that you enter for the transaction or billing terms.

You must also specify a tax region for tax codes in Settings > Accounting > Taxes and enter tax countries for vendors and clients in the Firms hub.

Grid Toolbar

Field

Description

Tax Region Drop-down

Click the drop-down arrow on a grid header to complete any of the following actions: To print grid data, click Print. On the Print Preview form, click File > Print to send the grid data to your default printer. To export grid data to an Excel spreadsheet, click Export to Excel. When Microsoft Excel opens, use its features to modify, print, or email the grid data, or to save the spreadsheet file locally. To turn on grouping for a grid, click Enable Grouping. When a field displays with the instruction: "Drag a column header here to group by that column," drag and drop column headers into the field, in the sequence that you want them to display. Not all options are available on all grids.

Field	Description
Insert	Click this option to add a tax region in the grid.
Delete	Click a row in the grid, and then click this option to delete the tax region. You cannot delete a tax region if a tax code has the tax region assigned to it in Settings > Accounting > Taxes.
Country	From the drop-down list, select a country code. You cannot enter the same country more than once in the grid; a country can have only one tax region. The drop-down list includes all the countries that have been added to the Country code table in Settings > General > Labels and Lists.
Tax Region	Enter the tax region (up to 10 characters) for the country. You can enter the same tax region for multiple countries. For example, you can have one tax region (such as EU) for all of the countries in the European Union. After you save a tax region, you cannot change the country or tax region. If you need to modify a tax region, you must delete it and then re-enter it in the grid.