Advanced Tax Setup: Part 4

  • By heather-holder
  • November 20, 2017

If you will recall, in the first three parts of the Advanced Sage Intacct AR Tax Configuration blog posts we completed all the necessary steps to have Intacct calculate tax automatically for us on our AR Invoices.  In Part 1 we created taxable account labels and grouped them together into AR Account Label Tax Groups, then in Part 2 we created our customers, marked them as taxable and then grouped them together in a Contact tax group.  In Part 2 we also created Tax Authorities (not pictured).  Part 3 was the part of the process where we created Tax Detail records, the place where we specify the percentage to charge for the tax.  We also grouped these Tax Detail records together in Tax Schedules in Part 3 and finally we tied the whole thing together using a Tax Schedule Map.


Create an Invoice

Advanced taxes are set up and now’s your moment to shine!  You can now create an invoice and have Intacct calculate the tax for you!  Navigate to Accounts Receivable > Activities > Invoices > New.  When creating an invoice that will include tax, ensure that you select a customer who has the taxable checkbox checked and has a Tax Group selected.  Taxes will only be calculated on an account label in the entries portion of the invoice that has taxable turned on and an Account label tax group assigned.

In the entries portion of the invoice select your taxable account label and then enter the transaction amount.  In the subtotal portion of the invoice, you can select the tax name from the dropdown and then click the Calculate button in order to have Intacct calculate the tax on those lines that are taxable.


After you click the calculate button you will see that your Subtotal line item for Ontario HST has updated to have the percentage as defined in the associated Tax Detail and the tax has been applied to the line items above that was marked taxable.


Once you are satisfied with your invoice post it. Please be aware that the Memo fields on all line items are what will print on your invoice. These fields are blank by default, and if left as such there will be no description for the charges. Best Practice is to complete this information on all invoices.

After your invoice is posted you can print it from the list screen. You should see both of your line items clearly displayed on the invoice.


Intacct Enthusiasts