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 on the Tax Codes form in
as input taxes with the
Transaction Entry and/or
Employee Expenses check boxes selected in the
Inputs section of the tab.
The Transaction Center and the Default Tax Codes
The default tax codes that you enter on the Tax Auditing tab prefill on the New File dialog box when you create a new transaction file for the Transaction Center 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—add other tax codes or delete some or all of the tax codes. You can use whatever tax codes are appropriate for the transactions in the specific transaction file.
For any individual transaction in the transaction file, you can override the taxes that have been automatically calculated with the default tax codes by clicking 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 the tax amounts.
For accounts payable vouchers and accounts payable disbursements, if a vendor has a default tax code entered for it in the Vendor Info Center, 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 Vendor Info Center is XXX. The default tax codes that are 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.
Expense Reports in Time & Expense and the Default Tax Codes
The default tax codes that you enter on the Tax Auditing tab are used to calculate taxes automatically when you enter expense reports in Time & Expense. Unlike Transaction Entry, the 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 in
, 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.
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