Override VAT or GST in Purchasing

Sage Intacct automatically calculates the tax for each line item in a purchasing transaction when a tax subtotal line has been defined in the corresponding transaction definition. If the amount of the tax that was calculated doesn't match the amount on the tax invoice you received, you can override the calculated amount.

For proper tax compliance and reporting, make certain that the tax posted in a purchasing transaction, such as a vendor invoice, matches the tax invoice.

Override the calculated tax

The Lines subtotals section in a line item enables you to override the automatically calculated tax amount.

Subscription

Purchasing

Regional availability

All regions

User type

Business user with full admin privileges

Permissions

Purchasing Transactions: List, View, and Edit

  1. If the purchasing transaction is not already open, find the desired transaction in the applicable transaction list and click Edit.
  2. For the line item with the Tax amount you want to change, click Show Details. One of the lines in the Lines subtotals table displays the tax detail and associated tax percentage used to calculate the tax.

  3. At the end of the line for the tax detail, select the Override tax checkbox.

    Tax override checkbox for a tax detail line.

  4. Enter a new value in the Transaction value field, which is now editable.

The Tax and Gross amount fields for the line item are automatically updated with the new tax amount. The tax detail and tax rate remain the same.

What happens if the transaction is converted?

If you override the tax amount in a transaction and then convert the transaction into another transaction, the overridden tax amount remains the same unless you edit the line item. If you edit the line item, remember to override the tax again, if necessary.

For example, assume you created a receipt with a line item for a quantity of 5 units of Item A at a unit price of $100. The calculated tax was $50, but you changed it to $55. When you convert the receipt to a vendor invoice, the tax remains $55. If you edit the line item in the invoice to change the unit price of Item A to $95, the tax is automatically recalculated and you lose the overridden amount.