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dynamiczip:faq:purchase_tax_accrual_debit_credit_faq

Why does the use tax accrual distribution contain both a debit and a credit?

For invoices, the debit side of the accrual is based either on the Purchases account assigned to the vendor or the Tax account specified in Posting Account Setup for Purchasing, depending on your selection in the DynamicZip Setup window. The credit side of the accrual will be the posting account assigned to the use tax detail(s) if one has been assigned. If not, then it will be the Tax account specified in Posting Account Setup for Purchasing. See Charge Tax Expense for more information.

This feature enables you to accrue use tax on purchases whether or not the vendor is billing you for that tax. Use tax transaction history is created for reporting purposes along with the accrual via general ledger distributions that this feature automatically adds to the transactions standard distributions.


FAQ

dynamiczip/faq/purchase_tax_accrual_debit_credit_faq.txt · Last modified: 2019/03/20 17:51 by conni

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