A/P Tax Account

Enter or select from the drop-down list an A/P tax account for this tax code. This A/P tax account is used as the default account when posting the sales tax. Sales tax is posted during A/P invoice, debit memo, and credit memo processing.

Note: This field is enabled and required only when:

On the Tax Systems form, the check box labeled Active for Purchasing is selected; and either
The Tax Rate field (on this form) is greater than zero; or
On the Tax Systems form, the Record Zero Rated check box is selected.

This account temporarily receives the VAT payment when the invoice is posted if, on the Tax Systems form, the Transfer VAT check box is selected. The VAT payment is later transferred during bank reconciliation to the VAT A/P Paid Acct field (on the VAT Accounts tab of this form).