Tax Posting Group

The Tax Posting Group screen allows you to define the general ledger accounts used when taxes are applied to financial transactions. The general ledger accounts will store taxes that are due to or from a tax authority. The tax posting group will be associated with a tax. When a tax is used on a bill or voucher, the processing will use the tax posting group to determine the general ledger accounts to use.

General

In the General area, enter tax posting group information.

Field		Description
	Code	Enter a unique alphanumeric key to identify the document. Once a code has been entered and the document has been submitted to final, it typically cannot be changed.
	Name	Enter a name to describe the document. The name does not have to be unique.
	Tax System	Select if the tax system is Value Added Tax (VAT) or Direct Sales Tax. This will determine the accounts required in the posting group. For example, if Value Added Tax (VAT) is selected, output and input accounts are required.
	Status	Select the status of the document.

Companies

In the Companies area, enter or select a company and the associated accounts used to record taxes. For more information about account setup, see Account

Field		Description
	Company	Enter or select an active or pending active company.
	VAT Output	Enter or select the account used to record VAT charged by the business and paid by its customers. Taxes posted to this account are paid as output taxes to the VAT tax authority. This is required when Value Added Tax (VAT) is selected in the Tax System field. This is typically a liability account. Only active or pending active accounts that belong to the Company and have an account type of Asset or Liability with a subsidiary type of None or Tax can be selected.
	VAT Input	Enter or select the account used to record VAT paid by a business to its vendors. Taxes posted to this account are claimed as input taxes from the VAT tax authority. This is required when Value Added Tax (VAT) is selected in the Tax System field. This is typically an asset account. Only active or pending active accounts that belong to the Company and have an account type of Asset or Liability with a subsidiary type of None or Tax can be selected.
	Sales / Use Tax	Enter or select the account used to record the Sales and Use Taxes. Sales Tax is charged on invoices to clients during the billing process. Use Tax is calculated during the voucher entry process. This is required when Direct Sales Tax is selected in the Tax System field. Only active or pending active accounts that belong to the Company and have an account type of Asset or Liability with a subsidiary type of None or Tax can be selected.
	Status	Select the status of the document.