Tax transactions
An invoice can include tax. If so, in addition to the transaction of TRANSTYPE = TOTAL, a transaction is written to the INVOICETRANS table with TRANSTYPE = TAXn, where 1 ≤ n ≤ 27. The value of n depends on which tax type you selected for the tax in the Chart of Accounts application.
Pay tax to vendor example 1
Approve an invoice for 20 bearings at $0.50 each, plus tax of $0.75.
If the tax is of type Tax 1, the following tax transactions are written: TRANSTYPE = TAX1 to INVOICETRANS.
GL account source | Debit | Credit | GL account source |
---|---|---|---|
Paid Tax GL account | $0.75 | $0.75 | Company RBNI account |
Pay tax to vendor example 2
Additionally, there is an option to add taxes to the cost of the item. When you choose this option and Pay Tax to Vendor is true, a single transaction of TRANSTYPE=TOTAL is written to the INVOICETRANS table. A tax type transaction is not written in this scenario.
If Tax Paid to Vendor (Pay Tax to Vendor? = Y) and if Tax is of Type Tax n, where 1 ≤ n ≤ 27
INVOICETRANS.GLDEBITACCT INVOICE.TAXnGL
TAXTYPE.INCLUSIVEGL
INVOICETRANS.GLCREDITACCT COMPANIES.RBNIACC
COMPANYACCDEF.RBNIACC
(where TYPE = type of vendor company)
Do not pay tax to vendor example 1
Approve an invoice for 20 bearings at $0.50 each, plus tax of $0.75.
If the tax is of type Tax 1, a tax transaction is written with TRANSTYPE = TAX1 to INVOICETRANS.
GL account source | Debit | Credit | GL account source |
---|---|---|---|
Paid Tax GL Account | $0.75 | $0.75 | Unpaid Tax GL account |
Do not pay tax to vendor example 2
When you can add tax to items and Pay Tax to Vendor is false, two transactions are written to the INVOICETRANS table:
- TRANSTYPE=TAXn, where 1 ≤ n ≤ 27
- TRANSTYPE=TOTAL
Approve an invoice for 20 bearings at $0.50 each, plus tax of $0.75.
If the tax is of type Tax 1, a tax transaction is written with TRANSTYPE = TAX1 to INVOICETRANS.
GL account source | Debit | Credit | GL account source |
---|---|---|---|
Company RBNI account | $0.75 | $0.75 | Unpaid Tax GL account |
If Tax Paid Directly to Authority (Pay Tax to Vendor? = N) and if Tax is of Type Tax n, where 1 ≤ n ≤ 27.
INVOICETRANS.GLDEBITACCT INVOICE.TAXnGL
TAXTYPE.EXCLUSIVEGL
INVOICETRANS.GLCREDITACCT TAXTYPE.INCLUSIVEGL