Sales Taxes: To Configure a Sales Tax for Use in AP

By performing this implementation activity, you will learn how to configure a sales tax that will be used in AP documents and purchase orders.

Story

The Muffins & Cakes company buys goods from its suppliers and pays the sales tax on these purchases (input tax). The rate of the sales tax is 8.31%. You need to configure a sales tax of the Input type in the system, which will be applied to AP documents.

Configuration Overview

For the purposes of this activity, in the U100 dataset, on the Tax Categories (TX205500) form, the TAXABLE and EXEMPT tax categories have been configured.

Process Overview

In this activity, on the Taxes (TX205000) form, you will open a sales tax; on the Tax Schedule tab, you will add a line for the Input type of reporting group.

System Preparation

Before you begin performing the steps of this activity, do the following:

1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as a system administrator Kimberly Gibbs by using the gibbs username and the 123 password.
2. As a prerequisite activity, make sure the DENTAX tax has been configured as described in Sales Taxes: To Create a Sales Tax for Use in AR.
3. As a prerequisite activity, make sure the DENVER tax zone has been configured as described in Tax Zones and Categories: To Review Tax Categories and Create a Tax Zone for Sales Taxes.

Step: Updating the Tax Schedule for the Sales Tax

To add a line to the tax schedule of the sales tax, proceed as follows:

1. Open the Taxes (TX205000) form.
2. In the Tax ID box, select DENTAX.
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
   • Start Date: 1/1/1900 (inserted by default)
   • Tax Rate: 8.31
   • Reporting Group: Input
4. On the form toolbar, click Save to save your changes.

   The created tax will be applied to all taxable items purchased from vendors assigned to the DENVER tax zone.