The Accounting Seed Native Tax Tool allows companies to automate the calculation of purchase taxes on accounts payable in Accounting Seed. This is also applicable to VAT, GST and any tax calculation based on purchases such as Use Tax.
A System Administrator or a user with sufficient permissions to the Product and Account objects must maintain the tax rates as 'products', set up existing products as taxable or tax exempt, and manage the tax types (purchase or sales & purchase) and tax rates applicable for vendors on the Account records.
Using Accounting Seed's Native Tax Tool involves the following steps:
- Create 'Tax Rates' (products) in the native Salesforce Product object. For example, create a tax rate product for Australian GST Tax.
- Update existing product records by setting the Tax Type field on the product to "Taxable Product" or "Tax Exempt Product".
- Update Account records to specify the Tax Type ("Purchase" or "Sales & Purchase") and the Tax Rates (defined in step 1) the vendor is subject to.
- After adding accounts payable lines to an account payable, click the Calc Tax button. (If the Calc Tax button is not visible on the accounts payable page, you may need to edit the Page Layout to add the button).