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.
- Navigate to Accounting Home and under Cash Out, click Payables (Vendor Invoices).
- Display a Payable record.
- 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.
- 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.
- Click Save. The Tax Amount displays based upon the selected Tax Group.
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)
- Create a Payable and add Payable Lines.
- Click Calc Tax. The intermediate screen displays.
- Click Calc Tax again.
Note: A new payable line will be automatically added for each Tax Rate assigned to the account. Each tax line will be the sum of the Tax Rate times the Line Amount across all taxable lines.
- 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 Payable Line.