Enter taxable transactions

Related information

Related topics

• Set up a standard tax solution

Your tax solution determines which applications you can use to calculate and capture tax in transactions.

This topic primarily addresses how to calculate and capture VAT, where tax is not always automatically determined for you.

About taxable transactions

To calculate and capture taxes in your transactions, your company first needs to be configured for a tax solution.

VAT tax solution

In the following applications, select one or more tax details for each line item in a transaction. Intacct then calculates taxes based on the selected tax details.

• Accounts Payable
• Accounts Receivable
• Cash Management
• General Ledger
• Expenses

In the following applications, the tax is automatically determined for each line item in a transaction. Intacct determines the tax based on the applicable tax schedule maps. You do not have to think about which tax details to select.

• Order Entry
• Purchasing

Sales tax: Advanced Tax or Avalara Tax

Sales tax is automatically determined for each line item in transactions in the following applications:

• Accounts Receivable (only invoices and recurring invoices with Avalara AvaTax are supported)
• Order Entry
• Purchasing

If you use Advanced Tax, Intacct determines the tax based on the applicable tax schedule maps. If you use Avalara AvaTax, Avalara determines the tax in their system according to rates they maintain for the tax jurisdictions. You can select Calculate subtotals in a transaction to see the amount of tax applied.

Multiple tax jurisdictions

If your company has multiple entities using different tax solutions and you enter a transaction at the top level, you need to select the tax solution to use to calculate and capture tax in the transaction.

An Advanced Tax or Avalara Tax solution appears in the Tax solution dropdown list only if the transaction definition for the transaction has one subtotal line that's defined as Is Tax.

Invoice or cash basis tax capture

By default, the Taxes application captures VAT at the time an invoice or bill is issued, a process known as invoice basis tax capture. In entities using a French tax solution, you can choose instead to capture VAT at the time an invoice or bill is paid, a process known as cash basis tax capture.

To use cash basis tax capture, select the Capture payment tax checkbox on the applicable line item of a transaction. When you post the transaction to create the invoice or bill, Intacct generates tax records for any unchecked line items. Line items marked with Capture payment tax generate tax records when the line items are paid off.

For reporting purposes, you must select Capture payment tax in your transactions to generate reports based on the payment date instead of the invoice date.

Transactions with a mix of invoice and cash basis tax capture can be reported over multiple tax submissions. You can capture tax on full or partial payment transactions.

When you apply a credit as a payment in a transaction that includes a line with Capture payment tax, the best practice is to set only the location dimension for the credit payment line. If you set other dimensions, it’s possible the payment might not go through due to the sequence that the payment is applied to the transaction lines.

The following transaction types are supported for cash basis tax capture:

• Accounts Payable bill

• Accounts Payable adjustment

• Accounts Receivable invoice

• Accounts Receivable adjustment

• Order Entry sales invoice

• Purchasing vendor invoice

When you check Capture payment tax in a Purchasing or Order Entry transaction, that selection carries over to the associated taxable Accounts Receivable or Accounts Payable transaction.