Table of Contents
Charge Tax Expense
The DynamicZip Use Tax Accrual feature provides flexible options for the posting account used to the offset to the accrual of taxes owed.
The Charge Tax Expense option is turned on or off in the Payables Trx Entry section of the DynamicZip Setup window.
Credit
- By default, the credit side of the transaction will go to the Tax Details' posting accounts (specified in the Tax Detail Maintenance window).
- For the tax accrual credit DynamicZip uses the posting account that has been assigned to the document's tax detail record. (If the tax amount is not zeroed out, this same account will be used by Microsoft Dynamics GP for the tax expense debit.) Therefore if the user or another software application modifies the tax expense account on the tax detail records before the tax accrual records are created, that modified account will then be used by DynamicZip as the tax accrual credit account.
If the Tax Details do not have a posting account specified, then the default tax posting account (specified in the Posting Accounts Setup window for Purchasing - Tax) is used.
NOTE: The Tax Details' accounts can be changed individually using the Tax Detail Maintenance window, or en masse using the DZ Set Posting Accounts window
Debit
Payables Transaction Entry
- When the Charge Tax Expense option is enabled, the debit side of the transaction will go to the vendor's Tax account (specified in the Vendor Account Maintenance window).When the Charge Tax Expense option is NOT enabled, the debit side of the transaction will go to the vendor's Purchases account (specified in the Vendor Account Maintenance window).
Purchase Order Processing
When the Charge Tax Expense option is enabled, the debit side of the use tax accrual will go to the vendor's Tax account (specified in the Vendor Account Maintenance window). If the vendor's Tax account is blank, then the Tax account for Purchasing is used (specified in the Posting Account Setup window).
When the Charge Tax Expense option is NOT enabled, the debit side of the use tax accrual will go to the item's Inventory account (specified in the Item Account Maintenance window) for inventoried items and the vendor's Purchases account for non-inventoried items. If the inventoried items' posting accounts are blank, then the Purchases account for Purchasing is used (specified in the Posting Account Setup window).
Both the debit and the credit can be modified by the user. You could modify these from the Invoice Distributions window.