Invoices with Sales Taxes: Generated Transactions
For documents created in the AR subledger, the system records tax amounts to the GL account specified for a particular tax on the GL Accounts tab of the Taxes (TX205000) form, as shown in the following table.
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable account | Amount + Tax amount | 00.00 |
| Sales account (Income account) | 00.00 | Amount |
| Tax Payable account | 00.00 | Tax amount |
You can review the generated transaction by clicking a link in the Batch Nbr. box on the Financial tab of the Invoices and Memos (AR301000) form.
When you release a payment for an AR invoice with a cash discount, and the payment is within the cash discount period, the system generates the following GL transaction.
| Account | Debit | Credit |
|---|---|---|
| Company checking account | Payment amount (invoice amount – cash discount amount) | 00.00 |
| Accounts Receivable account | 00.00 | Invoice amount + tax amount |
| Cash Discount account | Cash discount amount | 0.00 |
You can review the generated transaction by clicking a link in the Batch Nbr. box on the Financial tab of the Payments and Applications (AR302000) form.