Order Entry Basic Tax: Part 1

  • By heather-holder
  • December 8, 2017

The first step to enabling basic tax in Order Entry is to turn on Enable Subtotals on each of the transaction definitions for which you wish use taxes.  This is done by selecting the appropriate transaction definition in the Order Entry > Setup > Transaction Definitions list screen and clicking ‘Edit’.  In our example we will be adding the functionality to the Order Entry Sales Invoice document template.

Once the template is open in Edit mode scroll down to the Accounting section and there you should see the Enable Subtotals checkbox.  When you select this checkbox you will notice another checkbox appear at the bottom called Show expanded tax details.  This field is only used for Advanced Tax so we will not be enabling it today.


There is another tax related setting further down this screen in User overrides called Line item tax.  This checkbox is only enabled when the user has already checked Enable subtotals above.  This setting will allow the users to manually override the taxation rate on the transaction themselves.  For example, if your standard rate is 8% but one time you need to charge 12% you can type this percentage change into the subtotal line during transaction creation.


Setup Tax Calculation

The Subtotal table on the Transaction Definition screen is where you will setup the GL Accounts as they relate to your taxation lines.  You may have noticed this table below the Enable subtotals checkbox you checked earlier.  The columns themselves are pretty self-explanatory but there are a few things to note.  The first thing to note is that the description field must be unique; you cannot have two rows with the same description.  Secondly, the Applied to Line column relates to the subtotal line you wish to have the value applied to.  As you can see on the far left column of the Subtotal table is the line number, with the first being 1 and the second being 2.  If you want the Subtotal line to be calculated using one of the other subtotal lines you can do so by entering the value of the one you wish to apply it to into the Applied to Line.  We want to have our subtotal applied to the initial subtotal line calculate by Intacct.  Although it isn’t explicitly written here the initial subtotal line calculated by Intacct is line zero.  Therefore we place a zero in the Applied to Line field as shown below:


The value entered in the Value column relates directly to the Value type, for example if your value type is set to Percentage then the value itself should be the percentage you wish to calculate on the line value.  For example, if you want to calculate a tax of 8.25% you will enter 8.25 as the value, as shown above.  If you have a value type of Amount then the number you should put in the Value field is the fixed dollar amount you wish to charge, i.e. $125 would be entered as 125.  Make sure you select the Tax related GL account from the dropdown before saving your transaction definition.  Please note that the GL Offset account column is only applicable when using advanced workflows so we won’t be completing that in this example.

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