Entering Tax in AP
Entering Tax in AP in Vista
There are 4 options that can occur when you are entering AP:
NOTE: When the AP invoice has more than one line, the tax basis must be the amount of that line only, NOT TOTAL INVOICE.
1. After following the tax flowchart you determine that tax should be paid on this invoice and it has been charged on the invoice.
In this case you enter the entire AP invoice including the tax on the top portion of the AP entry screen as the invoice total. In the bottom portion of the AP entry screen, enter the subtotal (prior to tax) in the ‘gross’ field, then select Sales as the tax type, choose the appropriate tax code, and confirm the calculated tax amount matches the invoice.
2. After following the flowchart you determine that the tax should have been paid but it wasn’t charged on the invoice.
In the top portion, enter the invoice for the amount as received. In the bottom portion, the gross amount will be that same amount. Go to tax type and change to use, enter the jurisdiction that it is due to and put the basis as the amount of the invoice. The calculated tax will then fill in.
3. After following the flowchart you determine that tax should not be paid on this invoice but it has been charged.
When possible, enter the invoice short of the tax and send the company a resale certificate. If this is not possible (such as when the invoice has already been paid or a credit card) you will need to enter it in AP so that we can file to have the tax returned to us. The top portion of the AP entry will include the total amount including tax. In the bottom portion enter the gross for the full amount and then go to tax type and change it to Use, enter the code for the jurisdiction it was paid in. Put the Basis as the amount without tax and enter the tax amount as a negative.
4. After following the flowchart you determine that tax should not be paid on this invoice and it was not charged.
In the top portion, enter the invoice for the amount on the invoice. In the bottom portion, the gross amount will match the invoice total amount. Under tax type, choose Sales, and then select the EXEMPT code for that particular job (based on location). The tax amount should be zero.