9.2 Changing Tax Applicability on a Voucher

Purpose:  Use this document to change tax applicability on a voucher at the Header or the Line Level in ctcLink.

Audience: Accounts Payable staff

You must have at least one of these local college managed security roles:

  • ZD Accounts Payable Inquiry
  • ZZ Voucher Approval
  • ZZ Voucher Entry
  • ZZ_AP_MANAGER
  • ZZ_AP_SPECIALIST

You must also set these User Preference Definitions:

If you need assistance with the above security roles or User Preference Definitions, please contact your local college supervisor or IT Admin to request role access.

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 status by making it exempt at the Header level, or make 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 > Vouchers > Add/Update > Regular Entry

  1. The Voucher search page displays. Select the Find an Existing Value tab.
  2. Enter Business Unit.
  3. Enter Voucher ID.
  4. Select Search.
search page
  1. The Summary tab displays.
  2. Select the Invoice Information tab.
Summary tab
  1. The Invoice Information tab displays.
  2. To mark an entire voucher as Tax Exempt, check the "Tax Exempt" checkbox.
  3. Select Save.
Invoice Information tab
  1. Section complete.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

VIDEO COMING SOON!

View Tutorial via Panopto

View the external link to Changing Tax Applicability at the Line Level. This link will open in a new tab/window.

Changing Tax Applicability at the Line Level

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

  1. The Voucher search page displays.
  2. Select the Find an Existing Value tab.
  3. Enter Business Unit.
  4. Enter Voucher ID.
  5. Select Search.
Voucher Find an Existing Value tab
  1. The Summary tab displays.
  2. Select the Invoice Information tab.
Summary tab
  1. The Invoice Information tab displays.
  2. 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.

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.

Invoice Information tab
  1. The Invoice Line Tax Information window displays.
  2. 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.
  3. Select OK.
Invoice Line Tax Information window
  1. The Invoice Line Tax Information window disappears.
  2. Select Save.
Invoice Information tab
  1. Process complete.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

VIDEO COMING SOON!

View Tutorial via Panopto

View the external link to Changing Tax Applicability at the Line Level. This link will open in a new tab/window.

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