The Automatic Tax Calculation Facility

The SunSystems automatic tax calculation facility is only available if a tax analysis dimension is identified in Ledger Setup (LES). This facility can automatically perform tax calculations, post tax amounts to specified tax accounts, and append tax information to your transactions.

The Tax Analysis Dimension field in Ledger Setup (LES) allows you to nominate the analysis dimension to be used to record a tax code on a transaction. The dimension you choose must have been defined using Analysis Dimensions (AND) and assigned to the Ledger transactions entity using Analysis Structure (ANS).

You can set up any number of different tax codes for this dimension using Analysis Codes (ANC).

Once you have created the tax codes you can enter the additional tax details required by the automatic tax facility using Tax Details (TXD). For example, you can define the tax rate, and input and output tax accounts.

The tax calculations are only performed for journal types with the Automatic Tax Calculation option set to Yes in Journal Types (JNT).

The tax rate is applied to transactions in Ledger Entry (LEN) and Ledger Import (LIM) by entering the appropriate tax code in the transaction tax analysis dimension. The rate associated with the tax code is used to calculate the tax value for the transaction.

The rate can also be applied to settlement discount calculations. The tax portion of a settlement discount amount is identified and written to the appropriate tax accounts.