Landed taxes on leases

Before adding taxes to lease payments, verify whether the Use Tax Code Accounts field is selected on the Tax Entity record.

• If Use Tax Code Accounts is no, then the accounts and Landed Cost on the Tax Entity record are used for the tax distribution and Landed Tax calculation.
• If Use Tax Code Accounts is yes, then the accounts and Landed Cost on the Entity Tax Code record are used for the tax distribution and Landed Tax calculation.
• If the Landed Cost field being used is yes, then the taxes that are calculated are added to the Landed Tax amount and added to the lease payment.
• If the Landed Cost field is no, then taxes that are calculated are not added to Landed Tax amount and are not added to the lease payment.

  The Net Present Value, Lease Obligation, and Right Of Use are calculated using only the Lease payment and do not include the Landed Tax Amount.