Use this process to bill sales tax and/or value-added tax (VAT) on intercompany work orders (IWOs), post the sales tax and VAT in the sending and receiving companies, and print these values on tax reports.
To include sales/VAT tax amounts in IWOs and tax reporting:
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Set up the tax code on the Manage Sales or Value Added Taxes screen.
You can also establish on this screen if the tax is recoverable, the accounts for the tax, the recoverable value, and the suspense account.
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Set up which accounts have this sales/VAT tax applied to them on the Manage Taxable Sales Accounts screen.
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Set up the intercompany project on the Manage Project User Flow screen. Select
INTER-COMPANY from the
Project Classification drop-down list for a specific project.
If you do not select this option, you will not be able to use the project in IWO billing.
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Create the project sales tax setup on the Manage Project Sales Tax Setups screen.
This assigns the specific tax codes to the project.
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Establish billing master and billing formats for the intercompany project on the Manage Project Billing Information screen.
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Run the Calculate Standard Bills screen.
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Run the Post Standard Bills screen.
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Create the IWO allocation.
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Post the sending company's IWO allocation.
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Post the receiving company's IWO allocation.
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Run the Update Tax Report Tables screen.
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Print tax reports.
Tip: Refer to the online help of the individual screens mentioned for more details on setting up sales/VAT tax information. Also, refer to the online help available in the Inter-Company Work Orders module for instructions on the setup, processing, and transfer of IWO information.