Purchases with Inclusive Sales Taxes: Generated Transaction
To be able to process inclusive document-level sales taxes, you create and process purchase orders and AP bills. When an AP bill is released, to update the vendor balance, the system generates a GL transaction described in the following sections.
Transaction Generated for an AP Bill
When you create and release an AP bill with a rounding difference, the system generates the following GL transaction.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Payable | Vendor | 0.00 | Total amount |
| Expense of Line 1 | Item (if specified) or vendor | Line amount excluding taxes | 0.00 |
| Expense of Line 2 | Item (if specified) or vendor | Line amount excluding taxes | 0.00 |
| Expense of Line 3 | Item (if specified) or vendor | Line amount excluding taxes | 0.00 |
| Tax expense | Tax settings | Document tax amount | 0.00 |
| Tax Rounding Gain/Loss | Tax preferences on the Tax Preferences (TX103000) form | Tax rounding loss | Tax rounding gain |
You can view the reference number of the GL batch on the Financial tab of the Bills and Adjustments (AP301000) form.