Tax Basis

Enter a taxable monetary amount on which the tax amount is based. Note that on the Posted Transaction - Voucher Pre-register form, the tax basis of the selected transaction displays for reference.

The display order of this Tax Code field depends on the tax system. The tax code defined by you as the rate tax code always displays above the tax code defined as the exempt tax code.

If the tax system is an area-based tax system, the [Tax Code Label] field represents the rate tax code and displays above the [Tax Item Code Label] field, representing the exempt tax code. If the tax system is an item-based tax system, the [Tax Item Code Label] field now represents the rate tax code, and displays above the [Tax Code Label] field, now representing the exempt tax code.

This field represents the [Tax Code Label (1)] field as the rate tax code and the [Tax Code Item Label (1)] as the exempt tax code.

These rough calculations may not be correct due to differences in rounding and the tax basis should be entered based on the details of the invoice transaction being recorded.

Note: If the invoice is posted from CO and the Tax Distribution records are changed, the system will not go back and change the tax records associated with the invoice.