[Amount Label (2)]

This amount represents the amount of tax calculated for this invoice for Tax System 2. It is calculated using the Tax Code entered for Tax System 2. This field is displayed only if a second tax system is defined.

In an area-based system, this field is calculated by the following formula:

(Invoice Amount + Misc Charges + Freight) Tax Code rates

Freight and miscellaneous charges are included in this calculation if the flags of the rate Tax Code for Include Misc and Include Freight fields are set to Yes AND the Default AR/AP Tax Code field on the Tax System form has a non-zero rate or is blank.

In an item-based tax system, this field is calculated using the following formula, if the Tax Code entered on this form has a non-zero rate or is blank:

(Invoice Amount + Misc Charges + Freight) Default AR/AP Tax Code rates

The amount is distributed to the G/L accounts associated with the respective Tax Codes.