Expensed purchase tax

Expense purchase tax

If an expense purchase tax code applies to a purchase invoice, the tax amounts on the invoice are considered as costs. LN posts the tax amount to the same account and dimensions to which the purchase receipt transaction is posted.

Expense purchase tax is not restricted to the sales tax functionality. That means that you can set up expense purchase tax codes independently of the selection of the Destination Sales Tax Applicable check box in the COM Parameters (tccom0000s000) session. In Europe, expense purchase tax only applies to cost invoices.

Posting expense purchase tax is performed during these processes:

• Manual invoice approval in the Process Purchase Invoices (tfacp2107m000) session.
• Self billing and generation of internal invoices in the Generate Self-Billing Purchase Invoices (tfacp2290m000) session.