Direct Tax Payment: Generated Transactions

As you process a taxable purchase and create a tax bill for the agency, the system generates the GL transactions described in the following sections.

Transaction Generated for an AP Bill

When you create and release an AP bill that records a taxable purchase of imported goods, the system generates the following general ledger transaction:


Account	Source of Account	Debit	Credit
Expense account	The Expense account of the vendor specified on the Vendors (AP303000) form or of the document line	Amount	0.00
Accounts Payable account	The Accounts Payable account of the vendor specified on the Vendors form	0.00	Amount

You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000) form.

If you create an AP bill that records a taxable purchase and contains a line with a direct-entry tax, the system generates the following general ledger transaction.


Account	Source of Account	Debit	Credit
Accounts Payable account	The AP account of the vendor specified on the GL Accounts tab of the Vendors form	0.00	Line amount + total tax amount
Expense account	The Expense account of the vendor specified on the GL Accounts tab of the Vendors form or of the document line	Line amount	0.00
Tax claimable account	The Tax Claimable account of the VAT and the direct-entry tax specified on the GL Accounts tab of the Taxes (TX205000) form	Total tax amount	0.00

Transaction Generated for a Tax Bill

When you create and release a tax bill, the system generates the following general ledger transaction:


Account	Source of Account	Debit	Credit
Tax Claimable account	The Tax Claimable account of the VAT specified on the Taxes (TX205000) form	Tax amount	0.00
Accounts Payable account	The AP account of the tax agency specified on the Vendors (AP303000) form	0.00	Tax amount

You can view the reference number of the GL batch on the Financial tab of the Tax Bills and Adjustments (TX303000) form.