How to Set Up Unrealized Sales Tax and Sales Payment Discounts [MX]

You can use the General Ledger Setup page to set up unrealized sales tax. You can also set up maximum correction tax amounts so that you can limit the tax correction amounts that are entered for sales and purchases. This allows you to overwrite the calculated tax when there are rounding differences between what is calculated on the purchase order, and what is calculated on the purchase invoice from the vendor.

NOTE

If you work with excise tax, the system does not allow you to change the Tax Amount field on the Statistics page for an invoice, for example to adjust for rounding. Therefore, if you have set up an excise tax with more than two decimals and you experience a rounding difference compared to your vendor's invoices, then you must handle the rounding difference by posting an extra G/L entry so that the total matches the document amount. This posting could be made to an expense account dedicated to amount rounding.

To set up unrealized sales tax

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter General Ledger Setup, and then choose the related link.

  2. On the General Ledger Setup page, on the General FastTab, fill in the fields as described in the following table.

    Field Description
    Pmt. Disc. Excl. Tax Select to calculate the payment discount on amounts excluding sales tax.
    Adjust for Payment Disc. Select to recalculate the tax amounts when you post payments that trigger payment discounts.

    This field is used in the context of VAT, not sales tax.
    Unrealized VAT Select if any of your sales tax jurisdictions allow you to pay your sales tax after you have been paid. If you do not select this check box this function will be blocked for all sales tax jurisdictions.
  3. Choose the OK button.

To set up unrealized tax for jurisdictions

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Tax Jurisdictions, and then choose the related link.
  2. On the Tax Jurisdictions page, choose the Edit List action.

  3. Fill in the fields as described in the following table.

    Field Description
    Unrealized Tax Type – The unrealized tax feature is not used for this tax jurisdiction.

    –or–

    Percentage – Each payment covers both tax amounts and invoice amounts in proportion to the remaining invoice amount. The paid tax amount is transferred from the unrealized tax account to the tax account.

    –or–

    First – Payments cover the tax first, and then the invoice amount.

    –or–

    Last – Payments cover the invoice amount first, and then the tax amount. In this case, nothing will be transferred from the unrealized tax account to the tax account until the total invoice amount—exclusive of tax—has been paid.

    –or–

    First (Fully Paid) – Payments cover the tax first, but nothing is transferred to the tax account until the full tax amount has been paid.

    –or–

    Last (Fully Paid) – Payments cover the invoice amount first, but nothing is transferred to the tax account until the full tax amount has been paid. Important: This field is available on the Tax Jurisdiction page, but it is not shown by default. To select the field, you must first add the column that shows this field. Sie können die Darstellung bestimmter Benutzeroberflächenelemente ändern. Weitere Informationen finden Sie unter Personalisieren Sie Ihren Arbeitsbereich.
    Unreal. Tax Acc (Sales) The general ledger account that you want to use to post calculated unrealized tax on sales transactions. Important: This field is available on the Tax Jurisdiction page, but it is not shown by default. To select the field, you must first add the column that shows this field. Sie können die Darstellung bestimmter Benutzeroberflächenelemente ändern. Weitere Informationen finden Sie unter Personalisieren Sie Ihren Arbeitsbereich.
    Unreal. Tax Acc (Purchases) The general ledger account that you want to use to post calculated unrealized tax on purchase transactions. Important: This field is available on the Tax Jurisdiction page, but it is not shown by default. To select the field, you must first add the column that shows this field. Sie können die Darstellung bestimmter Benutzeroberflächenelemente ändern. Weitere Informationen finden Sie unter Personalisieren Sie Ihren Arbeitsbereich.
    Unreal. Rev. Charge (Purch.) The general ledger account that you want to use for posting calculated unrealized reverse-charge tax on purchase transactions. Important: This field is available on the Tax Jurisdiction page, but it is not shown by default. To select the field, you must first add the column that shows this field. Sie können die Darstellung bestimmter Benutzeroberflächenelemente ändern. Weitere Informationen finden Sie unter Personalisieren Sie Ihren Arbeitsbereich.
  4. Choose the OK button.

To set up adjustments for payment discounts in a tax posting group

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Tax Posting Setup, and then choose the related link.
  2. Choose the Edit action.

  3. On the Tax Posting Setup Card page, select the Adjust for Payment Discount check box.

    IMPORTANT

    This field is available on the VAT Posting Setup page, but it is not shown by default.

  4. Choose the OK button.

To set up maximum tax correction amounts

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Sales & Receivables Setup, and then choose the related link.
  2. On the Sales Receivables Setup page, on the General FastTab, select the Allow Tax Difference check box.
  3. Choose the OK button.
  4. Choose the Lightbulb that opens the Tell Me feature icon, enter Purchases & Payables Setup, and then choose the related link.
  5. On the Purchases & Payables Setup page, on the General FastTab, select the Allow Tax Difference check box.
  6. Choose the OK button.
  7. Choose the Lightbulb that opens the Tell Me feature icon, enter General Ledger Setup, and then choose the related link.

  8. On the General Ledger Setup page, in the Max. Tax Difference Allowed field, enter the maximum tax correction amount that is allowed for the local currency.

    NOTE

    In this field, if you enter USD 5, you may correct tax amounts by up to five dollars. To use the tax difference function, an amount must be entered in the Max. Tax Difference Allowed field.

  9. Choose the OK button.

See Also

Mexico Local Functionality
Reporting Sales Tax in Mexico
Finance
Setting Up Finance


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