Troubleshoot taxes setup

Below are some common issues that might occur during Taxes setup or when entering transactions and provides possible solutions.

These troubleshooting tips are for the taxes application solutions only. This includes the solutions for Australia GST, Canadian Sales Tax, Deutsche Umsatzsteuer, South Africa VAT, TVA Française, United Kingdom VAT, and Custom VAT.

Check your Order Entry, Purchasing, and Accounts Receivable configuration. If the Use Advanced Tax schedules checkbox is selected, deselect it, then check the Subscriptions page again.

For the standard tax solutions, Intacct automatically generates the initial tax object setup for capturing tax the first time you click Save on the Tax Solution Information page.

If you discover that you used the wrong GL account when the tax objects were originally created, the possible solution depends on the tax solution:

Either:

  • Change the GL accounts on the Tax Solution Information page.
    If you edit one or more tax details to change the GL account and then change the GL accounts on the Tax Solution Information page, the edited tax details are not updated with the changes to the GL accounts when you save the Tax Solution Information page.
  • Edit the generated tax details. See Edit tax details.

Edit the generated tax details. See Edit tax details.

Transactions in the Order Entry and Purchasing applications include tax fields only if the associated transaction definitions are set up to use subtotals and one subtotals line is selected as Is tax. Learn more about Order Entry transaction definitions and Purchasing transaction definitions.

For the other applications, you might need to select the Transaction has tax implications checkbox to see the tax fields. Learn more in Supported transactions and Enter taxable transactions.

Tax is calculated on the amount of the Extended price field in Order Entry and Purchasing transactions if the subtotals for the associated transaction definition are set up so that the tax subtotal line (Is tax) is applied to line 0. Otherwise, the tax might be calculated on another amount.

Assume that the subtotals table in a transaction definition is set up as follows:

  • Line 1 defined as a 5% discount applied to line 0
  • Line 2 defined as Is tax and applied to line 1

When a user enters a line item for a transaction for a total price of 100 and the item is taxed at 10%, Intacct first calculates the discount (100 multiplied by 0.05) and then calculates the tax on the discounted amount (95 multiplied by .10).

Check the subtotals setup for the transaction definition that's associated with the transaction in question. Learn more about Order Entry transaction definitions and Purchasing transaction definitions.

This error message might appear when a user is entering an Order Entry or Purchasing transaction. Intacct can't calculate tax because the customer (or vendor) and item combination doesn't resolve to a tax schedule map. Follow these steps to resolve the issue:

  1. Verify that the customer ship-to contact or vendor pay-to contact is marked as taxable and is assigned to a contact tax group:
    1. Click the Ship to or Pay to dropdown list, and then click the View link.
    2. Click the Additional information tab.
    3. Edit the Taxable and Contact tax group fields, if necessary.
  2. For each line item in the transaction where a value is not displayed for the Tax rate, verify:
    1. The item is marked as taxable and is assigned to an item tax group.
      1. Click the Item ID dropdown list, and then click the View link.
      2. Click the Additional information tab.
      3. Edit the Taxable and Item tax group fields, if necessary.
    2. A tax schedule map that uses the contact tax group and the item tax group combination exists.
      1. Depending on the transaction, go to Order Entry or Purchasing > Setup > Tax > Tax schedule maps. The list of maps appears.
      2. Review the list to ensure that a map exists for the contact tax group and item tax group.
    3. The tax schedule maps that exist for the contact tax group and item tax group combination specify a tax schedule that has tax details defined.
      1. Click Edit next to the applicable map.
      2. Click the Tax schedules dropdown list, and then click the View link.
      3. Click the Details tab.

Learn more about tax schedule maps.

In Order Entry and Purchasing transactions, too much tax can be calculated if:

  • The transaction definition has more than one subtotal lines marked as Is tax. Check the transaction definition for the transaction.
  • More than one tax schedule map is being applied. In your tax schedule maps, make sure that each item tax group and contact tax group combination is associated with only one tax schedule.