Why:
In order to calculate tax on an invoice, the system uses the tax code set up against the customer record, and the tax code for the goods item (e.g. the tax code held against a parts stock record). These two codes are matched against the Tax table and tax is then calculated using the corresponding VAT %.
Where:
From the Control Master File view, select Tax. This will display the Tax Details window.
How to Add Edit & Delete Tax Codes:
The Tax Details window lists the current combinations of customer and goods tax codes and the tax percentage that the combination attracts.
From here, new codes can be created and existing codes opened and viewed or amended as well as deleted.
Setup:
Against each required Customer/Goods code combination, set up the % to be applied. Set the calculation method as ‘Added’ and the number of the Tax Column to be used for analysis in the interface files.
The Fusion Accounting Interface caters for up to 9 different tax columns. For each of these 9 columns a tax amount and taxable amount is stored in the Invoice Journal File. In the nominal analysis file, you may choose to analyse each tax amount as a separate record, creating up to 9 double-entry postings per invoice. This method is called ‘tax at tax code level’. Alternatively, you may choose to generate one double entry for the total invoice tax amount regardless of how many different rates are contained in the invoice. This method is called ‘tax at total level.
The set up of Tax Codes is different depending upon whether you choose to analyse tax at tax code level or tax at total level.
Analysis of Tax at Tax Code Level:
In order to calculate tax on an invoice, the system matches the tax code set up against the customer record and the tax Code for the goods item, to the codes set up in the Tax Rate table. Tax is then calculated using the corresponding VAT %
However, the set up of codes in the Tax Rate table differs depending whether you choose to analyse tax at total level, or at individual tax code level.
If you want to analyse tax at total level, you must first set up the required tax code combinations in the Tax Rate, Customer Tax and Goods Tax options of the Fusion Control File. Each of your entries should be linked to the desired Tax Column number. If you wish you may link more than one customer/goods VAT code combination to the same Tax Column number.
Next, from the Parameter Maintenance window set up the following parameters:
|
Parameter |
Purpose / Description |
|
910 200 |
THF151 VAT postings at tax code level. Value = *LIKE (POS001). |
|
910 201 |
THF151 FUTRAT description for Tax. On the THF151 file, the appropriate tax column number is appended automatically to this description, e.g. TAX:01, TAX:02, etc. Value = e.g. TAX: |
|
910 179 |
THF152 Code for Default Nominal Account Table Tax 1. Value = e.g. TAX1 |
|
910 180 |
THF152 Code for Default Nominal Account Table Tax 2. Value = e.g. TAX2. |
|
910 181 |
THF152 Code for Default Nominal Account Table Tax 3. Value = e.g. TAX3. |
|
910 182 |
THF152 Code for Default Nominal Account Table Tax 4. Value = e.g. TAX4. |
|
910 183 |
THF152 Code for Default Nominal Account Table Tax 5. Value = e.g. TAX5. |
|
910 184 |
THF152 Code for Default Nominal Account Table Tax 6. Value = e.g. TAX6. |
|
910 185 |
THF152 Code for Default Nominal Account Table Tax 7. Value = e.g. TAX7. |
|
910 186 |
THF152 Code for Default Nominal Account Table Tax 8. Value = e.g. TAX8. |
|
910 187 |
THF152 Code for Default Nominal Account Table Tax 9. Value = e.g. TAX9. |
|
910 251 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 1. e.g. PTAX1. |
|
910 252 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 2. e.g. PTAX2. |
|
910 253 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 3. e.g. PTAX3. |
|
910 254 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 4. e.g. PTAX4. |
|
910 255 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 5. e.g. PTAX5. |
|
910 256 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 6. e.g. PTAX6. |
|
910 257 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 7. e.g. PTAX7. |
|
910 258 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 8. e.g. PTAX8. |
|
910 259 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax 9. e.g. PTAX9. |
|
TAX 016 |
Determines if tax is calculated at sale line level. May be positive or negative. See the following market specific options. Normally *LIKE(NEG001) |
Parameters 910 251 - 910 259 are only used if Vehicle Admin trade-in purchase invoices are posted to the financial interface.
Finally, set up the required credit and debit accounts from the nominal ledger in the General Ledger Other option of the Fusion Control File using each of the values entered in 910 179 to 910 187 and 910 251 to 910 259 as the entry in the ‘Code’ prompt.
Market-Specific Tax Code Options:
• If tax is charged on internal transactions, the THF151 FUTRAT description for internal tax should be input in Fusion parameter 910 190, and the code for file THF152 should be set up in 910 189.
• If parameter TAX011 is enabled (GST – Goods and Services Tax), the code for THF152 comprises the value from Fusion parameter 910 191 plus the Payment Code. The FUTRAT description in THF151 is made up of the value from parameter 910 201 plus the Payment Code.
• Tax
records can be written to the General Ledger Interface File THF151 on the basis
of:
A - One tax record per invoice sale line, or
B - One tax record
per tax rate, per invoice.
This functionality is controlled by parameter TAX016.
Analysis of Tax at Total Level:
In order to calculate tax on an invoice, the system matches the tax code set up against the customer record and the tax Code for the goods item, to the codes set up in the Tax Rate table. Tax is then calculated using the corresponding VAT %.
However, the set up of codes in the Tax Rate table differs depending whether you choose to analyse tax at total level, or at individual tax code level.
If you want to analyse tax at total level, you must first set up the required tax code combinations in the Tax Rate, Customer Tax Code and Goods Tax Code options of the Fusion Control File. Each of your entries should be linked to the same Tax Column number, e.g. 1.
|
Parameter |
Purpose / Description |
|
910200 |
THF151 VAT postings at tax code level. Value = *LIKE (NEG001). |
|
910127 |
THF151 FUTRAT description for Total Tax. Value = e.g. TOTVAT. |
|
910111 |
THF152 Code for Default Nominal Account Table. Value = e.g. VAT. |
|
910260 |
THF152 Code for Default Nominal Account Table - trade-in purchase tax. Only used if Vehicle Admin trade-in purchase invoices are posted to the financial interface. Value = e.g. PTAX. |
|
TAX016 |
Determines if tax is calculated at sale line level. Must be negative in this scenario. Value = *LIKE (NEG001). |
Finally, set up the required credit and debit accounts from the nominal ledger in the General Ledger Other option of the Fusion Control File using the value entered in 910 111 as the entry in the ‘Code’ prompt. The credit account should usually be a tax liability account and the debit account should normally be the debtors control account.
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