Purchases with a Sales Tax: To Configure a Sales Tax for Project Purchases

This activity will walk you through the process of creating a sales tax in the system.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the ToadGreen company buys goods from its suppliers and pays sales tax on these purchases. The rate of the sales tax is 8.875%; the tax amount must be calculated on the sum of the line amounts to which this tax is applied. You need to configure a sales tax to be calculated for AP documents; the calculated tax amounts can then be claimed from a tax agency.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Tax Zones (TX206000) form, the NYZONE tax zone has been created.
  • On the Tax Categories (TX205500) form, the TAXABLE category has been created.
  • On the Chart of Accounts (GL202500) form, the 24100 - Tax Payable and 69000 - Tax Expenses accounts have been created. The 69000 - Tax Expenses account is included in the MATERIAL account group.

System Preparation

Launch the MYOB Acumatica website, and sign in as a system administrator by using the gibbs username and the 123 password.

Step: Creating a Sales Tax

To create a sales tax, proceed as follows:

  1. On the Taxes (TX205000) form, add a new record.
  2. On the Tax Settings tab, specify the following settings:
    • Tax ID: NYSALESTAX
    • Description: New York sales tax
    • Tax Type: Sales
    • Calculation Rule: Exclusive Document-Level

      This setting means that the tax amount is calculated on the sum of the line amounts to which this tax is applied.

    • Cash Discount: Does Not Affect Taxable Amount
  3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
    • Start Date: 1/1/2024
    • Tax Rate: 8.875
    • Reporting Group: Default Input Group
    • Group Type: Input (specified automatically)

      An Input group is specified for a tax that can be claimed from a tax agency.

  4. On the Categories tab, click Add Row on the table toolbar, and select TAXABLE in the Tax Category column.
  5. On the Zones tab, click Add Row on the table toolbar, and select NYZONE in the Tax Zone ID column.
  6. On the GL Accounts tab, specify the following settings:
    • Tax Payable Account: 24100 - Tax Payable

      The Tax Payable account is the liability account that accumulates the tax amounts to be paid to the tax agency. The account is credited in the tax amount when taxable invoices are released.

    • Use Tax Expense Account: Selected
    • Tax Expense Account: 69000 - Tax Expenses

      The Tax Expenses account (69000) is included in the MATERIAL account group so that tax expenses will be posted to the project specified for the AP document lines.

  7. On the form toolbar, click Save to save your changes.

You have configured a sales tax.