Calculating Tax on a Billing with Accounting Seed (AS) Native Tax is different depending upon whether Header Level Posting (HLP) or Line Level Posting (LLP) is enabled.
Do you want to:
- Calculate Tax on a Billing with Header Level Posting (HLP)
- Calculate Tax on a Billing with Line Level Posting (LLP)
Calculate Tax on a Billing with Header Level Posting (HLP)
With HLP enabled, a Tax Group needs to be selected for each Billing Line. A default Tax Group can also be added to a Product to automatically populate the Billing Line. For more information, refer to the Set up AS Native Tax article.
Note: Under HLP, a Product is not required on the Billing Line for tax calculation.
- Navigate to Accounting Home and under Cash In, click Billings (Customer Invoices).
- Display a Billing record.
- Select a Billing Line and click Edit. Otherwise, click New to add a new line.
Note: You can also click Mass Add/Edit Rows to search for and select a Tax Group for each Billing Line. Then, click Save & Refresh, Save & Complete, Save & Post, or Save & New to calculate the Tax Amount.
- Scroll down the page to the Accounting Information.
- In the Tax Group field, click the Lookup icon to search for and select a Tax Group.
- Refresh the Billing record. The Tax Amount displays based upon the selected Tax Group.
Note: When a Billing has cash or credit applied, the Tax Group should not be changed. If an attempt is made to change the Tax Group, a message will display to prevent this action (the message does not expressly mention “Tax Groups”).
Calculate Tax on a Billing with Line Level Posting (LLP)
- Create a Billing and add Billing Lines.
- Click Calc Tax. The intermediate screen displays.
- Click Calc Tax again.
Note: A new billing line will be automatically added for each Tax Rate assigned to the Customer account. Each tax line will be the sum of the Tax Rate times the Line Amount across all taxable lines. For example, if the billing had one billable line for $100 and the customer account was set up for Illinois State Sales Tax (7%), Cook County Sales Tax (1%), and Chicago Sales Tax (3%), billing would have four lines:
- One billing line with the taxable product for $100
- One sales tax line for the Illinois State Sales Tax for $7
- One sales tax line for the Cook County Sales Tax for $1
- One sales tax line for the Chicago Sales Tax for $3.
- 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).
- Tax is calculated as part of the Billing Line.