Taxes in Projects
In MYOB Acumatica, you can post expenses associated with sales and use taxes under the projects selected in AP bills to accurately record project expenses. These expenses will be posted when such a bill is released.
On the Bills and Adjustments (AP301000) form, if a project identifier is specified in the Project column for a line of an AP bill, the tax expense amount will be posted to the general ledger under the project ID of the line. Based on the GL transactions that are generated for the bill, the system will create project transactions, and the tax expense amounts will be reflected on the project balance. Use tax and sales tax amounts are posted under the project ID of the corresponding AP document line if the tax expense account is included in an account group; otherwise, tax expenses will be posted under the project ID defined as the non-project code (which by default is X ).
If multiple lines of the bill have the same combination of project ID (the Project column), project task ID (the Project Task column), cost code (the Cost Code column), inventory item (the Inventory ID column), and GL account (the Account column), the system will create an aggregated GL entry with that project ID and the total tax expense amount.
GL Transactions
In the following example, an AP bill for $9095.00 with a 7% sales tax ($595) and a 3% use tax ($255) is created.
| Project | Task | Amount | Sales Tax Amount | Use Tax Amount | Description |
|---|---|---|---|---|---|
| 03-001 | 16-100 | 3000.00 | 210.00 | 90.00 | Fire protection |
| 03-002 | 15-300 | 4000.00 | 280.00 | 120.00 | Electrical work |
| 03-002 | 15-300 | 500.00 | 35.00 | 15.00 | Electrical work |
| 03-005 | 15-200 | 1000.00 | 70.00 | 30.00 | Painting work |
| 8500.00 | 595.00 | 255.00 |
When the bill is posted to the general ledger, the system creates the following GL entries.
| Account | Project | Task | Debit | Credit | Description |
|---|---|---|---|---|---|
| AP | Non-project code | 0.00 | 9095.00 | ||
| Tax Payable | Non-project code | 0.00 | 255.00 | Use Tax | |
| Expenses | 03-001 | 16-100 | 3000.00 | 0.00 | Fire protection |
| Expenses | 03-002 | 15-300 | 4000.00 | 0.00 | Electrical work |
| Expenses | 03-002 | 15-300 | 500.00 | 0.00 | Electrical work |
| Expenses | 03-005 | 15-200 | 1000.00 | 0.00 | Painting work |
| Tax Expense | 03-001 | 16-100 | 210.00 | 0.00 | Sales Tax |
| Tax Expense | 03-002 | 15-300 | 315.00 | 0.00 | Sales Tax |
| Tax Expense | 03-005 | 15-200 | 70.00 | 0.00 | Sales Tax |
| Tax Expense | 03-001 | 16-100 | 90.00 | 0.00 | Use Tax |
| Tax Expense | 03-002 | 15-300 | 135.00 | 0.00 | Use Tax |
| Tax Expense | 03-005 | 15-200 | 30.00 | 0.00 | Use Tax |