Order Entry Advanced Tax: Part 1

Intacct’s built-in tax calculation functionality is not only a great time saving tool but it is also helpful in reducing input errors on transactions.  Understanding the mapping of various settings is an important step to setting up advanced taxes which the following overview should hopefully help with:

Advanced Order Entry Tax Setup - Diagram

If you have already configured the AR Advanced tax functionality the above graphic will be familiar to you.  The main difference between the Accounts Receivable Advanced tax setup and the Order Entry Advanced tax setup is the use of Inventory items for Order Entry.  When you set up the AR functionality you use the Account Group Labels instead of Inventory Items.

For those who haven’t  set up AR Advanced tax functionality the following will explain the work flow of the above diagram for you.  The Tax Schedule Map is the center of the diagram, with all other data flowing into it.  On the right side of the chart you can see that the Tax Detail entries themselves are grouped together using the Tax Schedule. The Tax Detail entries are where you will store the percentage amount in order to allow Intacct to automatically calculate taxes for you. You can have multiple tax schedules in a single implementation and each Tax Schedule can contain one or more Tax Detail records.

On the upper left of the diagram you will see the customers.  Again, many customers can be linked together in a Contact Tax Group and you can have multiple contact tax groups in your implementation.  The Item Tax Group is used to group all your similar inventory items together.  Once you have all of these items grouped together you can then set up the Tax Schedule Map to complete the configuration process.

Enable Tax Schedules

The first step to setting up advanced taxes is to turn on ‘Enable Tax Schedules’ in the Enable Functionality portion of  Order Entry > Setup > Configuration as shown below:

Advanced Order Entry Tax Setup - Use Tax Schedules

In next week’s blog post we will continue with the setup of Order Entry advanced taxes.

One thought on “Order Entry Advanced Tax: Part 1

  1. […] shown on the diagram presented in Order Entry Advanced Tax:  Part 1, Customers and Contacts are required to be grouped together in Contact Tax Groups.  If you have […]

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