Unpaid tax GL account
This account is the accrual account for unpaid tax. You use this account for invoices that require you to pay tax directly to a government tax authority, instead of vendors or suppliers.
The Update Cost/Currency Variances on Inventory Costs check box is located in the Inventory Defaults window in the Organizations application.
To create and manage the unpaid tax GL account go to the Organizations application and from the Select Action menu, select .
- Specify an unpaid tax GL account for tax type 1 through n, where n ≤ 27. This account is used as the default.
- Specify a value for each individual tax code.
When you approve an invoice, the unpaid tax GL account is debited. The unpaid 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 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 unpaid tax GL account is debited, it credits the paid tax GL account.