Overview tab

Create and view the ledger posting groups for sales taxes and the ledger accounts that are associated with each group.

General tab

View the Overviewtab information for the selected ledger posting group. Enter accounts for vendor and customer cash discounts, if appropriate.

Ledger posting group

Enter a unique code for the ledger posting group.

You must attach a ledger posting group to a sales tax code in the Sales tax codes form to define how the sales taxes for the sales tax code are posted in the general ledger.

Description

Enter a descriptive name for the ledger posting group. This description appears on reports and forms together with the value in the Ledger posting groupfield.

Sales tax payable

Enter the ledger account for outgoing sales taxes (payable to the tax authority). You collect these sales taxes on behalf of the tax authority when you sell taxable goods and services, and the amount that you receive includes the sales tax.

For example, if a customer makes a purchase of 95.00USD and the tax amount is 5.00USD, the ledger transactions might be as shown as follows:

*This account represents the ledger account that is specified in this field. Sales tax amounts that you receive from customers are credited to this account and debited to the appropriate customer accounts.

Sales tax receivable

Enter the ledger account for incoming taxes (receivable from the tax authority). Vendors collect these taxes on behalf of the tax authority when you buy taxable goods and services, and the amount that is paid to the vendor includes taxes.

For example, if a vendor sends an invoice of 100.00EUR, of which 5.00EUR is value-added tax, the ledger transactions might be as shown as follows:

*This account represents the ledger account that is specified in this field. Sales tax amounts that you pay to vendors are debited to this account and credited to the appropriate vendor accounts.

Note
If you selected the Apply U.S. sales tax and use tax rulescheck box in the Parametersform, this field is not available. Instead, sales taxes that are paid to vendors are debited as expenditures (costs) to the same accounts as the purchases. For more information, see Applying U.S. sales tax and use tax rules.

Use tax expense

Enter the ledger account for posting deductible incoming taxes that are not claimed or reported to the tax authority by vendors.

Note
If you selected the Apply U.S. sales tax and use tax rulescheck box in the Parametersform, this field is not available.

For more information, see Record sales tax that is not claimed by EU vendors.

Use tax payable

Enter the ledger account that offsets the use tax expense for taxes that are not claimed by vendors.

The use of this account depends on the kind of tax system that your company has chosen:

• Non-U.S. taxes – You must indicate a Use tax expense account. For the sales tax groups that contribute amounts to this ledger account, you must select the Use taxfield on the Setuptab in the Sales tax groups form.

• U.S. taxes – The amount in this account offsets the taxes that have been posted as expenses if you selected the Apply U.S. sales tax and use tax rulescheck box in the Parametersform. The vendor is not required to collect the tax, but the company might still owe taxes to a sales tax authority and must track such taxes.

Example

A company buys office supplies on the Internet from an out-of-state vendor. The vendor charges 100.00USD for the supplies and no tax. The company might still owe use taxes to the sales tax authority in its own state. The ledger transactions might be as shown as follows:

*This account represents the ledger account that is specified in this field.

Settlement account

Enter the ledger account that contains the net balance of the Sales tax payableand Sales tax receivableledger accounts. The balance is created when you run the Sales tax payment periodic job.

For companies that select the Apply U.S. sales tax and use tax rulescheck box in the Parametersform, the account contains the net balance of the Sales tax payableledger accounts.

At the end of the sales tax settlement period for the sales tax authority, you can run the Sales tax payment periodic job. During this job, the amount that the company owes the sales tax authority for the period is transferred from this account to the sales tax authority's vendor account. When an employee performs the company's usual payment routine, the payment to the sales tax authority is created together with payments to other vendors.

If you have not set up vendors for the sales tax authorities, this ledger account is debited directly when you pay the sales taxes that have been collected for sales tax codes with this ledger posting group.

Unrealized tax payable

Select the account that unrealized sales tax for accounts payable should be posted to.

Note
(THA) This field is available only if the configuration key for Thailand is selected.

Unrealized tax receivable

Select the account that unrealized sales tax for accounts receivable should be posted to.

Note
(THA) This field is available only if the configuration key for Thailand is selected.

Vendor cash discount

Enter the ledger account for the posting of vendor cash discounts that include a sales tax amount. If you use this field, you must also select the Reverse sales tax on cash discountand Cash discount is calculated on amount incl. sales taxcheck boxes in the Parameters form.

For more information, see Vendor cash discount.

Customer cash discount

Enter the ledger account for the posting of customer cash discounts that include a sales tax amount. If you use this field, you must also select the Reverse sales tax on cash discountand Cash discount is calculated on amount incl. sales taxcheck boxes in the Parameters form.

For more information, see Customer cash discount.