Apply Tax to a Vendor Invoice

You can only add tax to invoices in the New state. The Apply Tax feature adds sales tax, NOT use tax.

You can add either use tax or sales tax, but not both types of tax. Use tax is a state tax on goods purchased in another state for use in the taxing state. Verify that you're using the correct type of tax. See About Use Tax for more information.

If you add or edit line items after you've added tax, the tax line item account codes won't be re-allocated to reflect any additional account codes or changes in quantities or price. You can delete the tax line item and then add it again to get the system to re-calculate the tax account code allocations based on the new information.

Two ways of applying tax

You can apply tax to an invoice either from the More menu in the Vendor Invoice window or from the Edit Invoice window. If you need to add apply taxes to multiple invoices, we recommend using the Edit Invoice window.

Apply tax in the Vendor Invoice window

  1. Select Vendor Invoice from the Accounts Payable menu, and the Vendor Invoice window opens displaying invoices for all vendors.

  2. Check the box for a New invoice, and select Apply Tax from the More menu. The Apply Tax window opens displaying the default tax. The default is calculated by multiplying the tax rate for each line by the estimated cost for that line and then adding the taxes for all lines.

  3. Enter the Tax Amount if it should be different than the displayed amount, and click OK. You'll be notified that the tax was applied successfully, and the Tax line item will be listed in the Order Items grid in the Edit Invoice window.

Apply tax in the Edit Invoice window

  1. Select Vendor Invoice from the Accounts Payable menu, and the Vendor Invoice window opens displaying invoices for all vendors.

  2. Check the box(es) to select invoice(s) in the New state, and click the Edit button. The Edit Invoice window opens.

  3. Click Apply Tax in the Invoice Items tab, and the Apply Tax window opens displaying the default tax.
    The default is calculated by multiplying the tax rate for each line by the estimated cost for that line and then adding the taxes for all lines.

  4. Enter the Tax Amount if it should be different than the displayed amount, and click OK. You'll be notified that the tax was applied successfully, and the Tax line item will be listed in the Order Items grid in the Edit Invoice window.

  5. Move to the next record, and apply tax on the next invoice.

 

Return to Edit Vendor Invoice Items

Return to Edit a Vendor Invoice

Return to Vendor Invoice Overview