Invoice with tax

If you receive taxable invoices from your vendors, then you may want to process and track those invoices differently. You can override the tax information on add-on charge/allowances invoices or match invoices in the Tax Adjustment field. You can override tax information in these ways:

Option Description
Override Product Only
  • To override the tax code that is on the purchase order
  • To override the tax code if there is tax on the invoice, but you do not know if there was a tax on the purchase order

By selecting this option, you override the tax code on the purchase order with the tax code that is on the invoice for products only. This does not include AOC. If you select a tax code and you leave the Tax Adjustment field blank, then this option is automatically used if a tax code exists on the purchase order line. If the tax code is on the header and none of the lines were marked as taxable, then an error message prompts you to fill in the Tax Adjustment field.

Choosing this option lands the cost if Landed Cost is selected on Entity Tax Codes. If this tax code is an accrued tax, then the offset goes to the accrual code you set up in Entity Tax Codes. If this tax code is an invoice tax, the offset does not go to the accrual code. The accrual tax code is not used unless it is an accrued tax

Selecting this option means that the override tax is applied to the purchase order lines, so it lands the tax to the lines.

Ignore Product Only Select this option if there is a tax code on the purchase order and you do not want to use a tax code in relation to the product. You can use this to ignore that tax code on the purchase order and not put a tax code on the invoice. If you select a tax code and try to use this option, an error message is displayed.

This option applies only to the product; if add-on charge lines have tax, the tax is still calculated based on that criteria.

Calculate Select this option to calculate the tax based on the tax code on the invoice header. This option creates a tax record. The purchase order is not reviewed and taxes are not applied to the lines.

If this is an accrued tax, then the offset goes to the accrual tax code set up in Entity Tax Codes. If an invoice tax is used, the tax amount is distributed to the input account you set up in Entity Tax Codes.

The taxable amount is required for this option. This option is also a non-landed, header-only tax.

Override Product And AOC This option is similar to Override Product Only. By selecting this option, you are also overriding the tax code on the add-on charge. If the add-on charge that is specified on a purchase order has a tax code assigned to it, the tax code is overridden on both the purchase order line and the add-on charge.
Ignore Product And AOC This option is similar to Ignore Product Only. By selecting this option, you are also ignoring tax on an add-on charge. If you create an invoice and do not want tax applied to it but there is a tax code on the header or line item, then do not specify a tax code on taxed invoice. Use this option to prevent the tax from being calculated.

If you select this option and the add-on charge is added to the invoice, then the tax is not applied to the add-on charge that was added to the invoice.

Override Taxable PO And AOC Select this option to use a rate to calculate the tax rate on the invoice and override the rate on the purchase order. This option is used when the tax entity bases tax collection on a different criteria than the purchase order. At the time the invoice is received the tax rate is different than that specified on the purchase order.