Sales Tax

This amount represents the amount of tax calculated for this invoice for Tax System 1. It is calculated using the tax code entered for Tax System 1.

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

    (Invoice Amount + Misc Charges + Freight) tax code rates

Freight and Misc charges are included in this calculation only if the Include Misc and Include Freight check boxes are selected for the tax code and the AR/AP Tax Code field on the Tax Systems 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 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 that are associated with the respective tax codes.