The Accounting Seed (AS) 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.
AS Native Tax functionality is different depending upon whether your organization has enabled Header Level Posting (HLP) or Line Level Posting (LLP). Under AS Native Tax HLP, a Tax Group provides the ability to calculate tax amounts at a line level instead of a summary tax total. The tax calculation will be performed on a Billing Line, a Payable Line, or an Opportunity Product Line record. AS Native Tax HLP uses Tax Groups and Tax Rates in the system to calculate tax.
Under AS Native Tax LLP, taxes are calculated as a summary tax total. The tax calculation will be performed on the sum of all Billing Lines, Payable Lines, or Opportunity Product Lines that have a taxable product. Accounting Seed uses Product records as tax rates in the system and these are referred to as “Tax Rate Products.”
- Header Level Posting (HLP) is available with the Iris release.
- Tax Groups can be set up for tax calculation purposes with Header Level Posting (HLP