In EU countries/regions, every sales and purchase transaction is subject to Tax calculations. For more information about recording Tax, see Recording Tax.

Manually Adjusting Tax Amounts in Sales and Purchase Documents

The program automatically calculates the Tax using the customer's Tax Bus. Posting Group and the item's Tax Prod. Posting Group. However, you can also manually enter the Tax amounts, if the amount calculated by the program is slightly different to that calculated by your customer or vendor, for example, due to rounding.

To manually enter Tax in sales documents

  1. In the Shortcut iconGeneral Ledger Setup window, specify a Max. Tax Difference Allowed between the amount calculated by the program and the manual amount.

  2. In the Sales & Receivables Setup window, place a check mark in the Allow Vat Difference field.

To adjust Tax for a sales document

  1. Open the relevant sales order.

  2. Open the Sales Order Statistics window.

  3. Click the Invoicing FastTab.

    Note
    The total Tax amount for the invoice, grouped by VAT identifier, is displayed in the lines. You can manually adjust the amount in the Tax Amount field on the lines for each VAT identifier. When you modify the Tax Amount field, the program checks to ensure that you have not changed the Tax by more than the amount you have specified as the maximum difference allowed. If the amount is outside the range of the Max. Tax Difference Allowed, a warning will be displayed stating the maximum allowed difference. You will be unable to proceed until the amount is adjusted to within the acceptable parameters. Click OK and enter another Tax Amount that is within the allowed range. If the Tax difference is equal to or lower than the maximum allowed, the Tax will be divided proportionally among the document lines that have the same VAT identifier.

Manual Tax Calculation Using Journals

You can also adjust the Tax amounts calculated by the program in general, sales, and purchase journals. It may be necessary to do this when you enter a vendor invoice in your journal and there is a difference between the program's calculated Tax amount and the Tax amount on the vendor's invoice you have received.

Before you manually enter Tax on a general journal

  1. In the Shortcut iconGeneral Ledger Setup window, specify a Max. Tax Difference Allowed between the amount calculated by the program and the manual amount.

  2. Place a check mark in the Allow Tax Difference field for the relevant journal in the Shortcut iconGeneral Journal Templates window.

Before you manually enter Tax on sales and purchase journals

  1. Check the Allow Tax Difference field in the Shortcut iconSales & Receivables Setup and Shortcut iconPurchases & Payables Setup windows, respectively.

  2. Once you have completed the setup described above, you can adjust the Tax Amount field on the general journal line, or the Bal. Tax Amount field on the sales or purchase journal line, to equal the invoice Tax amount. The program will check that the difference is not greater than the specified maximum.

    Note
    If the difference is greater, a warning will be displayed stating the maximum allowed difference and you will be unable to proceed until the amount is adjusted accordingly. Click OK and enter another amount that is within the allowed range. If the Tax difference is equal to or lower than the maximum allowed, the program will show the difference in the Tax Difference field.

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See Also