Accounts Payable Taxes

You can configure taxes to automatically add to new Vouchers when a particular Supplier is used. To configure Taxes to be used in Accounts Payable:

1. Configure the AP Tax Resource(s)
2. Activate Supplier Tax Verification
3. Assign Default Taxes & Supplier Taxes
4. Add Tax Section & Fields to the Add/Edit Voucher window layout

Configure the Tax Resource

To add a tax to a voucher, you must add a tax resource. Accounts Payable Tax resources are class 8 resources (the Type must begin with 8AP) and are all added as Resource Types. To add a tax resource:

1. Click the Tax Resources link from the Main Menu. The Tax Resources screen opens.
2. Click the Add button. The Add Tax Resource screen opens.
3. Enter the type value beginning with an 8AP into the Type field.
4. Enter the name of the tax resource into the Resource Type Description field.
5. Enter additional details for the tax:
   • Category – Classifies the tax resource as a Tax, Gratuity or Add-On. Allows for segmenting the tax resources for reporting purposes. Adding a tax resource defaults the field to Tax.
   • Rate Type – Determines how the tax is calculated. Defaults to Percent.
     • Percent - Uses a percentage to calculate the tax. Most taxes are set to Percent.
     • Rate - Uses a fixed amount for the tax. Rate is often used for fixed amount fees such as a Returned Check Fee. 
   • Basis – If Percent is selected in the Rate Type field, Amount defaults into the Basis field. This means the percent is calculated based off the amount of the order. If Rate is selected in the Rate Type field, the total of the tax is based off of either the Units of the tax or the Time Units of the tax.
   • Round to Nearest – Preferred monetary denomination rounding to use for the tax.
   • Round – Rounding method to use for the tax.
     • Round Off - Standard rounding methods are used.
     • Round Up -  Tax is always rounded up to the nearest value configured in the Round to Nearest field.
     • Truncate - Tax amount is truncated at the decimal value and no rounding takes place.
   • U/M – If Percent is selected in the Rate Type field, select Each. If Amount is selected in the Rate Type field, select the desired U/M for the tax.
   • Per – If Percent is selected in the Rate Type field, enter 100. If Amount is selected in the Rate Type field, enter the desired value.
6. Select the Tax Rates tab.
7. Click the Add button. The Add Tax Rate screen opens.
8. Enter the necessary information:
   • Rate - Tax rate (as a percentage).
   • Effective Date - Beginning date the tax rate is applicable.
   • Retired - If set to Yes, the tax rate is not used.
9. Click OK.
10. Click OK on the Edit Tax Resource screen.

Activate Supplier Tax Verification

Once you create the accounts payable tax resource, you need to configure the system to use Taxes in Accounts Payable.

1. Click the Accounts Payable Configuration link from the Main Menu 
2. Select the "Vouchers and 1099 Values" tab
3. Tick the box next to the "Supplier Tax Verification" option
   • Optional: The "Require Taxes" option can be set to Warn or Stop users from posting Vouchers which do not contain taxes
4. Click OK

Assign Default Taxes & Supplier Taxes

Default taxes can be configured to be automatically added to new Vouchers if none are configured on the specific supplier.

1. Click the Accounts Payable Configuration link from the Main Menu 
2. Select the "Taxes" tab
3. Click "Add"
4. Highlight the tax(es) that you wish to be automatically shown in the Taxes section on new Vouchers
5. Click Select
   • Optional: Right-click on the tax that you wish to be automatically calculated on the total value of new vouchers
   • Click "Set as Default"

For Suppliers who have specific taxes which should be calculated that are different to the Default Tax set above:

1. Edit the Supplier Account
2. Click the A/P Demographics link in the View menu
3. Select the "Taxes" tab
4. Click "Add"
5. Highlight the tax(es) that you wish to be automatically shown in the Taxes section on new Vouchers for this Supplier
   • Optional: Right-click on the tax that you wish to be automatically calculated on the total value of new vouchers
   • Click "Set as Default"

Add Tax Section & Fields to the Add/Edit Voucher window layout

Before being able to view/edit the taxes on a Voucher, the relevant fields & sections need to be added to the layout of the Edit Voucher window.

1. Add/Edit a Voucher
2. Click Edit Layout
3. Drag the "Taxes" section from the Available Sections area in the top-right (note: it is recommended that this be a sub-section under the "General" section)
4. Drag the following fields into the Taxes section from the Available Fields area
   • " " (there is a blank/unlabelled field which contains the headings for the various tax columns)
   • Tax 1
   • Tax 2
   • Tax 3
   • Tax 4
   • Tax 5
   • Tax 6
5. Click OK

Note: it is recommended to make all the Tax fields full-width as they contain multiple columns within the fields. Even though all six fields are added to the layout, the system will automatically hide unnecessary rows by always showing just the ones which have a tax rate type selected plus one more empty row to allow the user to add an additional tax to the voucher.