Tax Auditing Tab of Accounting Company Settings

Use the Tax Auditing tab to enable the Tax Auditing feature and set up certain tax code defaults.

Contents

Field	Description
Enable Tax Auditing Feature	Select this check box to turn on the Tax Auditing feature. This feature allows you to enter certain input taxes in Vision and also 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 Inputs section, Thresholds section, Non-Recoverable Tax section, Tax Code to Include in Basis field, and Tax Currency field (if you use the Multicurrency feature) on the Tax Codes tab in Configuration > Accounting > Taxes Tax Country Code and Tax Registration Number fields on the General tab in the Client Info Center and the Vendor Info Center Tax-related fields for expense categories in Configuration > Time & 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 Item 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 is used on certain tax reports.
Tax Registration Number	Enter the firm'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 Vision.

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 Time & Expense.

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 in a new blank row in 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	A sequence number prefills automatically in this field when you click Insert to add a tax code to the grid. 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. You can proceed to use the same sequence number for multiple tax codes. If you do so, 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 on the Tax Codes form in Configuration > Accounting > Taxes 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 Configuration > Time & 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 the ability to associate an originating vendor, in addition to the actual employee or vendor who is getting paid, with the line items that you enter for employee expense reports, accounts payable vouchers, and accounts payable disbursements. When this feature is not enabled, only the employee or vender who will receive payment is entered for an expense report, voucher, or disbursement. For more information about how this feature works, including the fields that are enabled throughout Vision when you turn on the feature, see the "Originating Vendors" 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 of AP vouchers and AP disbursements that they enter in the Transaction Center.
Enable Validation of European Tax Registration Numbers for Clients and Vendors	This check box is enabled if you select the Enable Tax Auditing feature check box on this tab. Select the Enable Validation of European Tax Registration Numbers for Clients and Vendors check box to add a Validate Tax Registration Number button to the General tab of the Client and Vendor info centers. The Validate Tax Registration Number button is enabled when the user enters the client or vendor's tax registration number in the Tax Reg. # field in the respective info center. This is the number that is assigned by each country and used for tax reporting. When the user clicks this button, Vision uses an API to validate the client or vendor's tax registration number with the Belgian VAT Desk. If valid, the user can proceed with saving the record. If invalid, Vision displays an error message alerting the user of the issue.

Tax Region Grid

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's specific address that you enter for the transaction or billing terms, you must set up tax regions in this grid.

You must also specify a tax region for tax codes in Tax Codes Configuration and enter a tax country for vendors and clients in the Vendor and Client Info Centers.

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 a new blank row 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 Configuration > 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 Configuration > General > Code Tables.
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.