Purchases with Sales Taxes: General Information

In your company’s AP bills, a sales tax is a tax paid by the company to its vendors as a part of an AP bill amount. In MYOB Acumatica, the system calculates the sales tax in vendor documents automatically.

Learning Objectives

In this chapter, you will learn how to do the following:

• Create an AP bill with a sales tax applied
• Release the AP bill and review the GL transaction generated by the system

Applicable Scenarios

You create an AP bill with at least one sales tax to record a purchase subject to sales taxes.

Calculation of Taxes on Purchases

The system calculates the tax and taxable amounts by using the settings of each tax that corresponds to both the tax category of the specified inventory ID and the tax zone of the selected vendor. The system calculates the tax and taxable amounts for each line of the document or for the total document amount, depending on the settings of the applied tax (for details, see Sales Taxes: To Configure a Sales Tax for Use in AP). The system inserts the sales tax amount in the Tax Total box in the Summary area of the Bills and Adjustments (AP301000) form.

After you release the document, the system creates the corresponding GL transaction and records these amounts to the appropriate GL accounts.