Defining the Accounts that Can Have Tax Records Created

Use the Account Tax Code Defaults form to specify the accounts for which tax transactions can be created from manual journal entries. This is similar to the A/P and A/R Tax Accounts that are defined to temporarily hold VAT tax amounts for invoices and vouchers, but the accounts you specify here are used for transactions that are not based on invoices or vouchers.

  1. On the Account Tax Code Defaults form, select an account for which you want to allow tax records in the journal entries. The account description is displayed.
  2. Select the appropriate tax code to use.
  3. In the Exempt field, select a tax code with a tax code type of Exemption.
  4. Select the tax account and unit codes to use. In the case of tax journal entry transactions, you would use the same account number in the Account and Tax Account fields.
  5. Save your changes.
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