Add an AR account label

1. Go to Accounts Receivable > Setup and select Add (circle) next to Account labels.

2. In AR account label, enter a label name.

   This name is what users see when assigning amounts to this account. After you save this record, you can no longer edit the AR account label.

   If you are creating an AR tax account label, enter an easily identifiable name, such as Tax. Naming labels helps you to find a label easily when configuring your tax setup.
3. In Description, enter information about the purpose and use of this account label.
4. Select an Account number to assign a General Ledger account to this label.
5. Select AR account from the dropdown to create a default offset account for this account label.
6. To have Advanced Tax or Avalara AvaTax automatically calculate the sales tax, select the Taxable checkbox.
   • If you use Advanced Tax to compute taxes (meaning, you manage your own set of tax rules) and you want Intacct to compute sales tax automatically, select this checkbox.
     You cannot use Advanced Tax with either Avalara AvaTax or Simple Tax.
   • If you use Avalara Tax, Avalara automatically calculates sales tax for your U.S. and Canadian transactions. This calculation happens regardless of whether you have selected the Taxable checkbox.
   • To use both Avalara Tax (for North American transactions) and Simple Tax (for all other global transactions), select this checkbox. This option enables you to enter the appropriate taxes on an invoice.
7. To define this account label as a subtotal-type, which can include non-tax items, such as discounts and shipping, and tax-type items, such as sales tax, select the Subtotal checkbox.
   Enable the subtotals features in the Configure Accounts Receivable page if you want your invoices to show the subtotals. The results of this setting (the tax percentage) can be overridden in the invoice itself. Do not select the Subtotal checkbox for normal account labels used with the Avalara sales tax integration that have an Avalara tax code.

8. The Is tax checkbox works with the Subtotal checkbox. Select this checkbox only if the subtotal is for a tax. Examples include sales, luxury, and excise tax. Do not select this checkbox for other subtotals, such as discounts or shipping and handling charges. Selecting the Is tax checkbox enables Intacct to correctly post the resulting tax from the invoice subtotal line to the GL as a sales tax. In addition, Intacct can also then find these sales tax subtotal amounts to display them on the sales tax report.

   On Avalara sales tax integration: Do not select the Is tax checkbox for normal account labels used with the AvaTax Integration that have an Avalara tax code.

9. To assign the account label to a tax group, select the Account label tax group dropdown list, and select a tax group.

   Account label tax groups organize taxable account labels under one tax category. This feature is relevant only if you use Advanced Tax, and only if this account label is not a subtotal.

10. To use this account label to defer revenue, select the Default revenue GL account dropdown, and select the appropriate GL account. Then, select the Default revenue recognition template dropdown, and choose the template to use.

    The Default revenue GL account and Default revenue recognition template options appear only if you enabled revenue recognition in Accounts Receivable configuration (Accounts Receivable > Setup > Configuration).

11. If you have subscribed to the AvaTax Integration, and you enabled that feature for Accounts Receivable, do one of the following:

    • Enter the Avalara tax code in the Tax code box.

    • Select the pick icon to show the Select tax code window. In the window, select Select next to the Avalara tax code you want.

      Go to Configure Accounts Receivable for information about enabling Avalara for Accounts Receivable.

12. When creating AR account labels for AvaTax, be sure that the status in the Status dropdown is set to Active.