Issue/Symptom/Question

What does the checkbox for Direct payment mean on the Job Sales/Use Tax Tab?

Applies To

• Job Information Setup > Sales/Use Tax tab
• Accounts Payable
• Sales and Use Tax Accruals
• Option 271

Resolution/Fix/Answer

Check the "Direct payment of sales and use tax" box if you want ALL sales tax for the job to be remitted to the sales tax jurisdictions rather than the vendor.  PENTA will accrue the tax to the Vendor on the Tax Jurisdiction setup.  In other words, the Tax on the Invoice will not be paid to the Vendor on the Invoice, the Tax on the Invoice will be reclassified to the Vendor associated with the Jurisdiction.

Leave the "Direct payment of sales and use tax" box unchecked if you want to remit tax to the vendor when the Vendor includes Tax on the Invoice. Exceptions to this rule may apply based on system option 271.