Calculate Tax on a Payable with AS Native Tax

Overview 

Calculating Tax on a Payable 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 Payable with Header Level Posting (HLP)
• Calculate Tax on a Payable with Line Level Posting (LLP)

Calculate Tax on a Payable with Header Level Posting (HLP)

With HLP enabled, a Tax Group needs to be selected for each Payable Line. A default Tax Group can also be added to a Product to automatically populate the Payable Line. For more information, refer to the Set up AS Native Tax article.

Note: Under HLP, a Product is not required on the Payable Line for tax calculation. 

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Payables.
2. Display a Payable record.
3. Select a Payable 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 Payable Line. Then, click Save & Refresh, Save & Complete, Save & Post, or Save & New to calculate the Tax Amount.
4. Scroll down the page to the Accounting Information.
5. In the Tax Group field, click the Lookup icon to search for and select a Tax Group.
   
   
   
   
6. Click Save. The Tax Amount displays based upon the selected Tax Group.
   
   
   Note: Click here to view the above image in full screen. 
   
   Note: When a Payable 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 Payable with Line Level Posting (LLP)

1. Create a Payable and add Payable Lines.
2. Click Calc Tax. The intermediate screen displays.
3. Click Calc Tax again.  
   Note: A new payable line will be automatically added for each Tax Rate assigned to the account.
   
   
   Note: Click here to view the above image in full screen.
   
   Each tax line will be the sum of the Tax Rate times the Line Amount across all taxable lines. For example, if the Account Payable had two lines, one taxable for $100 and one non-taxable for $1000, and the Vendor account was set up for Australian GST Tax = 10%, the Account Payable would have three lines:
   • One AP line with the taxable product for $100.
   • One non-taxable AP line for $1000.
   • One purchase tax line for $10.

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