Creating tax transactions

  1. Sign in as Payables Manager and select Run Processes > Process Tax Documents > Tax Transactions.
  2. Click Create.
  3. Specify this information:
    Tax Entity
    Specify the tax entity code.
    Tax Code
    Specify a user-defined code representing tax information.
    Transaction Number
    Specify a system-assigned internal transaction number. The transaction ID is used to keep tax transactions unique.
  4. On the Invoice Information tab, specify this information
    Company
    Specify the company number.
    Vendor or Customer
    Specify the vendor or customer number for which the transaction was created.
    Invoice Number
    Specify the invoice number associated with the transaction.
    Cancel Sequence
    Specify the sequence number that is assigned when a Payables distributed invoice is cancelled. The first sequence that is assigned is 9999.
    Prefix
    Optional. The prefix is defined in Payables company and is used in every invoice with the Sequence.
    Sequence
    This is an auto-sequenced value associated with the Prefix. This value resets to zero when the Prefix changes on the Payables company. The Prefix and Sequence represent a distinct invoice so duplicate values are not allowed.
    Tax Usage Code
    Specify the tax usage code. This is used for Payables transactions in countries where the VAT returns requires statistics for the goods and services purchased for a specific use.
    Invoice or Credit
    Select whether the transaction on which the tax was created as an Invoice or Credit Memo.
    Invoice Amount
    Specify the invoice amount in the currency of the transaction.
    Invoice Date
    Specify the date the invoice was created for the transaction.
    Taxable Amount
    Specify the taxable amount of the transaction in the currency of the transaction.
    Tax Point Date
    Specify the date at which sales tax is calculated.
    Tax Amount
    Specify the sales tax amount for the tax transaction in the currency of the transaction.
    Tax Rate
    Specify the tax rate that the system used for the transaction.
    Currency Rate
    Specify the currency exchange rate used to convert a non-base currency transaction amount to the company base currency.
  5. On the System Information tab, specify this information:
    System Code
    Specify the system from which the transaction originated.
    Product Tax Category
    Select a product tax category. Use this field to group items to determine the tax rate by item grouping. For example, you can tax an item group called tobacco products so that it is taxable in one state but not in another state. Product tax category can be specified when adding an item in Inventory Control.
    Process Level
    Specify the process level associated with the tax transaction.
    Tax Identification Number
    Specify the tax identification or the registration number of the company the transaction was created for.
    Accrual Flag
    Select whether to apply tax to an invoice as Invoiced or Accrued.
    VAT Registration Country
    Specify the country component of the VAT registration number.
    VAT Registration Number
    Specify the number component of the VAT registration number.
    Input or Output
    Select whether the source of the transaction is Input or Output.
  6. On the Posting Information tab, specify this information:
    Global Ledger Account
    Select the general ledger accounting dimension that is associated with the tax transaction.
    Posting Date
    Select the general ledger posting date that is associated with the tax transaction.
    Tax Year
    Specify the tax year for which the calendar was defined.
    Tax Period
    Specify the tax period of the specified year.
  7. Click Save.