Tax Regions Overview

Tax regions allow you to configure Vision to include only the appropriate tax codes for a vendor or client in the Tax Code drop-down list in AP voucher entry, AP disbursement entry, and invoice billing terms.

The appropriate tax codes for a vendor or client are based on the vendor or client's tax country and a tax code's region, which is associated with a country.

You must complete the following configuration in order for 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:

• Set up tax regions on the Tax Auditing tab in Configuration > Accounting > Company Settings. You associate a country with a tax region.
• Specify a tax region for a tax code on the Tax Codes tab in Configuration > Taxes.
• Enter a tax country for vendors and clients on the General tab in the Vendor and Client Info Centers. You enter a separate tax country for each address that you enter for a vendor and client.

A country can have only one tax region. You can use the same tax region for multiple companies. For example, you can have one tax region (such as EU) for all of the countries in the European Union.

When no tax country is entered for a vendor or client, all tax codes display in the Tax Code drop-down lists in AP voucher entry, AP disbursements entry, and invoice billing terms for that vendor or client.

When a vendor or client has a tax country that is not associated with any tax region on the Tax Auditing tab in Accounting Company Settings, then only the tax codes that have no region assigned on the Tax Auditing tab will display in the Tax Code drop-down list in AP voucher entry, AP disbursements entry, and invoice billing terms for that vendor or client.

Tax regions do not affect how default tax codes are populated for transactions.

In AP Voucher and AP Disbursement entry, the Tax Code field is located on the Tax Codes dialog box that opens when you click the hyperlink in the Total Tax Amount field. In Billing Terms the Tax Code field is located on the Tax Codes grid on the Misc tab of the Billing Terms form.

AP Voucher and AP Disbursement Example

• The country of Belgium is assigned the EU tax region in the Tax Region grid on the Tax Auditing tab in Configuration > Accounting > Company Settings.
• There are 10 tax codes that are assigned the EU tax region on the Tax Codes tab in Configuration > Accounting > Taxes. The status of all 10 tax codes is Active, and they all have the Transaction Entry check box selected in the Inputs section of the Tax Codes tab in Tax Codes Configuration.
• BE (Belgium) is the tax country that is entered for vendor Brown and Associates on the General tab in the Vendors Info Center for their Belgium address.

When you enter an AP voucher or AP disbursement in Transaction Entry for Brown and Associates using their Belgium address, only the 10 tax codes with the EU tax region display in the Tax Codes drop-down list on the transaction entry forms.

Invoice Billing Terms Example

• The country of Belgium is assigned the EU tax region in the Tax Region grid on the Tax Auditing tab in Configuration > Accounting > Company Settings.
• There are 10 tax codes that are assigned the EU tax region on the Tax Codes tab in Configuration > Accounting > Taxes. The status of all 10 tax codes is Active, and they all have a check box selected in the Outputs section of the Tax Codes tab in Tax Codes Configuration.
• BE (Belgium) is the tax country that is entered for client Sitka Corporation on the General tab in the Clients Info Center for their Belgium address.

When you enter Billing Terms for the Sitka Corporation using their Belgium address, only the 10 tax codes with the EU tax region display in the Tax Code drop-down list on the Misc tab in Billing > Billing Terms.