Paid tax GL account

The paid tax GL account is the accrual account for tax that you pay to a vendor or supplier. In most countries, you pay tax to a vendor or supplier, instead of a government tax authority.

You can specify the paid tax GL account in two ways:
  • You can specify a value for individual tax codes, or specify a tax type GL account.
  • You can specify a paid tax GL account for tax types 1 through n, where n ≤ 27.

When you approve an invoice that includes tax, the paid tax GL account is debited. The paid tax GL account is defined for each tax code. If an individual GL account has not been assigned for the tax code, the GL account that is specified for the tax type is used.

The transaction amount is the sum of the amounts specified for each tax type in the invoice lines. For a credit invoice, the amount is negative.

When the invoice includes tax, the paid tax GL account is paired with the received but not invoiced account. When the paid tax GL account is debited, it credits the received but not invoiced account.

When the invoice does not include tax, the paid tax GL account is paired with the unpaid tax GL account. When the unpaid tax GL account is debited, it credits the paid tax account.