Set up taxes for requisition management
The following sections include information about how to set up taxes for requisition management.
Set up the tax areas that are available for finance requests
Administrators can now set up a separate set of tax area codes that are applicable for purchase requisitions, payment requests, and expense claims. The purpose of this setup is to limit the list of tax areas that users see to only those tax areas that are applicable.
To make a tax area available for purchase requisitions and payment request as well as appear in the list that is available when configuring a default tax area on expense types, on the Tax Areas page, select the Available on Finance Requests checkbox for the respective tax area.
To make a tax area available for expense claims as well as appear in the list that is available when configuring a default tax area for claims on expense types, on the Tax Areas page, select the Available on Expense Claims checkbox for the respective tax area.
Set up tax ratios for finance requests
To determine the tax ratios for finance requests, the values that are specified on the Tax Area page, on the Purchase Requisitions FastTab, are used. To avoid rounding issues between tax calculations in finance requests and other financial documents, it is recommended that these fields be configured with the same ratios as your regular tax setup.
For more information about reporting sales tax in Canada, see Reporting sales tax in Canada. For more information about reporting sales tax in the US, see Reporting sales tax in the US.
Set up default tax areas for expense types
Administrators can set up default tax area codes for purchase requisitions and payment requests. When this value is set up and on the Purchases & Payables Setup page, the Default Vendor’s Tax Area is turned off, the tax area code defaults from the expense type instead of the vendor.
For claims, the value for tax area code defaults from the Tax Area Code Exp. Claim when populated. Otherwise, an employee must select a value from the list of available options.
The Tax Group Code when filled in, is defaulting on the purchase order, purchase invoice, or purchase credit memo lines that are created for the respective expense type upon conversion of a requisition to a purchase order or payment request and expense claim to a purchase invoice.
Set up default tax areas on items
On the Item Card page, on the Costs & Posting FastTab, you can assign a default Tax Group Code and Tax Area Code for an item.
Set up taxes on the Purchases & Payables Setup page
Several settings on the Purchases & Payables Setup page impact the flow and user experience in relation to taxes.
On the General FastTab, it is recommended that Use Vendor Tax Area Code be turned on to avoid errors when converting finance requests to purchase documents.
On the Finance Requests FastTab, the following fields impact the flow and user experience in relation to taxes:
Default Vendor’s Tax Area
Tax Caption
Override Tax Group Code
On the Limited Access FastTab, Hide All Tax Fields impacts the flow and user experience in relation to taxes.
Set up taxes on the vendor
You must set up the Tax Area Code and Tax Liable on the vendor with applicable values.
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