Purchases with Inclusive Sales Taxes: Implementation Activity

In the following implementation activity, you will learn how to update the settings of an inclusive sales tax so that it can be used for purchases.

Story

Suppose that the SweetLife Fruits & Jams company buys goods from its vendors and pays the sales tax on these purchases (input tax). The rate of the sales tax is 8.875% and this tax should be applied at the document level.

Acting as an implementation consultant, you need to configure a sales tax of the Input type in the system, which will be applied to AP documents.

Configuration Overview

In the U100 dataset, for the purposes of this activity, on the Taxes (TX205000) form, the NYINCTAX has been configured and assigned to the TAXABLE category and the NYSTATE tax zone.

Process Overview

In this activity, on the Taxes (TX205000) form, you will open an inclusive sales tax; on the Tax Schedule tab, you will add a line for the Input type of reporting group.

System Preparation

Before you begin to work with sales taxes, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as a system administrator Kimberly Gibbs by using the gibbs username and the 123 password.
  2. As a prerequisite activity, ensure an inclusive sales tax has been created, as described in Invoices with Inclusive Sales Taxes: Implementation Activity.

Step: Updating the Tax Schedule for the Inclusive Sales Tax

To update the tax schedule of the inclusive sales tax, do the following:

  1. Open the Taxes (TX205000) form.
  2. In the Tax ID box, select NYINCTAX.
  3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
    • Start Date: 1/1/1900 (inserted by default)
    • Tax Rate: 8.875
    • Reporting Group: Input
  4. On the Categories tab, make sure that the TAXABLE category has been added.
  5. On the Zones tab, make sure that the NYSTATE tax zone is added.
  6. On the form toolbar, click Save to save your changes.

    The created tax will be applied to all taxable items purchased from vendors assigned to the NYSTATE tax zone.