Professional Documents
Culture Documents
For non recoverable taxes, the calculated tax amount is accounted as follows:
If it is not defined, then using the item account defined at the AP invoice line
level.
If it is not defined then using the tax recoverability account defined at the TAX
RATE.
Note: If recovery is DEFERRED, then the tax is accounted in an interim tax account
defined at the TAX RATE until a payment is made. Afterwards the tax amount gets
transferred to the tax recoverability account.
For non recoverable taxes, the calculated tax amount is accounted as follows:
If it is not defined, then using the item account at the AP invoice line level.
If it is not defined, then using the tax recoverability account defined at the TAX
RATE.
Note: For the liability the credit tax engine considers the tax liability account,
which is defined at the TAX RATE.
For non partner tax calculation the accounting is done using default accounts set
for the TAX type in Auto Accounting:
If for a specific segment the account code is specified under Constant, then that
segment tax is accounted in that particular account code.
If for a specific segment taxes is specified under Table Name, then that segment
tax is accounted using the tax liability account in TAX RATE.
For partner tax calculation the accounting is done using default accounts set for
the TAX type in Auto Accounting:
If for a specific segment the account code is specified under Constant, then that
segment tax is accounted in that particular account code.
If for a specific segment taxes is specified under Table Name, then for that
segment the tax is accounted as follows:
Note: This occurs when the Create Tax Accounts drop down is selected at the tax
level.
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For Standard Invoices and Prepayment Invoices, the default value of 'Enforce Tax
From Reference Document' is Yes.
This means the value gets copied and enforced from the PO. So even if the tax rate
is updated as per the customer's steps,
the Cancel flag gets stamped on the new tax line.
Even though the specific customer did not have a Configuration Owner Tax Option
(COTO) for Payables, Standard Invoices,
the above explanation still holds true.
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13. How to disable tax usage in requisitions?