Tax setup recommendations
You must set the tax parameters to the recommended settings for Australia and New Zealand.
Australia
This table shows the recommended values for Australian sites.
Set overpayment in Property, Debtors, Licensing, Applications, and Infringements modules to Taxable=NO. Tax is not payable and the standard Non-Taxable Type is not required for overpayment.
| Option | Value |
|---|---|
| Rounding | Closest |
| Rounding Amount | .01 |
These values are important for sites that have a Tax Calculation within the export function. For example: Finance One, Peoplesoft, Computron sites.
Only one Tax Code is required for all Accrual modules and all Cash modules. This table shows the recommended Tax Code for Accrual modules setup:
| Option | Value |
|---|---|
| Tax Accrual | Appropriate Tax Collection Account |
| Tax Accrual Reversal | Suspense Tax Account |
| Tax Cash Account | Suspense Tax Account |
This table show the recommended Tax Code for Cash modules parameters setup:
| Option | Value |
|---|---|
| Tax Accrual | Suspense Tax Account |
| Tax Accrual Reversal | Suspense Tax Account |
| Tax Cash Account | Appropriate Tax Collection Account |
Assuming Tax Rate is always 10%. For 1/2 Tax (5%), split the invoices using taxable Debt Type and non-taxable Debt Type to form the Total Invoice value.
New Zealand
This table shows the recommended values for New Zealand sites.
Set overpayment in Property, Debtors, Licensing, Applications, and Infringements modules to Taxable=YES. Tax is payable for overpayment.
| Option | Value |
|---|---|
| Rounding | Closest |
| Rounding Amount | .01 |
It is important to set these values in sites that have a Tax Calculation within the export function. For example: Finance One, Peoplesoft, Computron sites.
A separate Tax Code for overpayment is required. Only one Tax Code is required for all modules.
This table shows the recommended values for Tax Code for modules:
| Option | Value |
|---|---|
| Tax Accrual | Accrual Suspense Tax Account |
| Tax Accrual Reversal | Accrual Suspense Tax Account |
| Tax Cash Account | Appropriate Cash Tax Collection Account |
This table shows the recommended Tax Code for overpayment setup:
| Option | Value |
|---|---|
| Tax Accrual | Overpayment Tax Suspense Account |
| Tax Accrual Reversal | Overpayment Tax Suspense Account |
| Tax Cash Account | Appropriate Overpayment Tax Collection Account |