ctcLink Reference CenterFinanceAccounts Payable Vouchers 10Changing Tax Applicability on a Voucher - 10

Changing Tax Applicability on a Voucher - 10

Purpose:  Use this document to change tax applicability on a voucher within ctcLink.

Audience: Accounts Payable staff

Vouchers have two primary places where tax applicability (i.e., Sales Tax Applicable, Use Tax Applicable, Tax Exempt) can be set or modified at the Header level and at the Line level.

This means you can assign an entire voucher Tax Exempt by making it exempt at the Header level, or making individual voucher lines Tax Exempt while leaving the rest of the voucher lines Sales Tax Applicable.

Changing Tax Applicability at the HEADER LEVEL

Navigation:  Accounts Payable > Voucher > Add/Update > Regular Entry

  1. Select Add a New Value tab.
  2. Enter Business Unit if it is not defaulted.
  3. Select the Add button.
Add a New Value tab
  1. Select the Invoice Information tab.
  1. To mark an entire voucher as Tax Exempt, check the "Tax Exempt" check box.

Changing Tax Applicability at the LINE LEVEL

Navigation:  Accounts Payable > Vouchers > Add/Update > Regular Entry

  1. Select the Add a New Value tab.
  2. Enter Business Unit if it is not defaulted.
  3. Select the Add button.
Add a New Value tab
  1. Select the Invoice Information tab.
  1. Scroll down to the Invoice Line you would like to change the Tax Applicability for and select the Sales/Use Tax link text on the right side of the Invoice Line box.

NOTE:  This linked text will not appear (or will disappear when you select it) if the voucher has been marked as Tax Exempt in the Header section.

  1. Use the Sales/Use Tax Applicability drop down list to set the tax applicability for the chosen line. The main options used are Item is Exempt, Sales Tax Applicable and Use Tax Applicable.  The other options for Direct Pay and Purchaser is Exonerated are specific exception cases for why something should be tax exempt; they have the same result as Item is Exempt, not calculating tax for the that line. The tax rate used for Sales Tax Applicable lines is based on the Ship To Location set for the chosen line; Use Tax Applicable lines are automatically set to the state Use Tax rate.

End of Process.

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