Default tax details

About

You can simplify tax calculation in your VAT or GST transactions by associating default tax details with a customer or vendor contact. When you create certain Accounts Payable or Accounts Receivable transactions with the specified customers or vendors, the associated tax details are used as the default for the line entries.

Before you begin

To set up default tax details for transactions, assign a default tax schedule for a customer, vendor, or any contact.

After you've set the default tax schedule, the application fills in default tax details for that schedule at the line level in the following transaction types:

Accounts Payable

  • Bills

  • Recurring bills

  • Payment adjustments

  • Manual payments

Accounts Receivable

  • Invoices

  • Recurring invoices

  • Payment adjustments

  • Manual deposits

Workflow

To use default tax details, create one of the supported transaction types for a customer or vendor with an assigned default tax schedule. Check that the transaction has tax implications and select the VAT or GST tax solution.

When you enter the taxable amount on a line, the field in the Tax detail column populates with the default tax detail. The tax rate is applied and the tax and totals automatically calculate.

You can manually change the Tax detail entry for the line. The tax rate and totals recalculate based on the new detail entered.

If you have a different contact assigned for the customer ‘Ship to’ or vendor 'Pay to', then the default tax schedule assigned to the 'Ship to' or 'Pay to' contact will be used instead.

Additional information or limitations

To assign a default tax schedule to a contact, you must select a tax solution for that contact. The default tax schedule field populates with a list of tax schedules associated with the selected tax solution.

The tax schedule that you set as default for a contact must be associated with a tax schedule map. If you use customized tax schedules in a custom or customized standard tax solution, the default tax details are only applied if the tax schedule is associated with a tax schedule map.