Selecting this check box will enable DynamicZip to calculate and accrue use tax for the Payables Transaction Entry window. This feature will create a set of Tax Detail records identical to the ones created by Microsoft Dynamics GP. Each duplicate tax detail created by DynamicZip is credited to the tax payable posting account specified for the tax detail. The offsetting charge is either to the vendor's Purchases account or to the vendor's Tax account - see Charge Tax Expense. These additional distributions are automatically added to the distributions created by Payables Transaction Entry.

If use taxes have been included in the vendor's invoice, they will be handled as usual by the Microsoft Dynamics GP set of tax details. The use tax accrued by the DynamicZip tax details will be offset by the payment of the use tax to the vendor. In other words, the DynamicZip tax details provide a history of the use tax payable. The Microsoft Dynamics GP tax details provide a history of use tax paid or payable to vendors. If the use taxes have not been included in the vendor's invoice, type a zero in the Payables Transaction Entry Tax field and DynamicZip will remove the Microsoft Dynamics GP set of tax details. The use tax will then be accrued as outlined above, but there will be no offsetting payment of the tax to the vendor - the net credit will be to the tax payable account.

The supplemental set of tax details will be created in unison with the Microsoft Dynamics GP tax details. This usually happens when you tab into the Tax field or modify the document's tax schedule. The supplemental tax details can be viewed and modified by choosing Accrued Purchase Taxfrom the Additionalmain menu option (Only available when the Payables Transaction Entry window is open).

When Microsoft Dynamics GP creates its distributions, DynamicZip Will create supplemental distributions based on the supplemental tax details. Distributions are usually created when you save the voucher or click the Distributions button. After the distributions have been created, you can use the Payables Transaction Entry Distribution window to modify them manually or recreate the default distributions by clicking the Default button.

NOTE: The tax details must exist in order for the distributions to be created.
NOTE: The distributions will not be automatically updated if the voucher is modified.

Glossary