AOC tax

Tax amounts are communicated in TXI segments in an ASC 810 transaction. TXI segments can be at line level or summary level. Like AOC, a supplier may send AOC tax information at both the line level and the summary level. The intent may provide a break down of the specific tax but the effect is the doubling of the AOC amount tax and the invoice out of balance.

The supplier has provided tax totals which include item and AOC tax, and itemized the taxes on the AOC freight at the summary level, effectively including AOC tax twice in the invoice. The intent may provide itemized detail of the charges and that is discerned by the AP clerk that processes a paper invoice, but the software adds up the amounts from each TXI segment.