Overview:
The Accounts Payable Account associated with Sales Tax Jurisdictions has the control Edit Rule linked to it. The control Account requires all transactions to occur at the subledger. Therefore, the AP Invoice & Credit Memo Entry window is needed to update the AP Balance owed to a jurisdiction.
Benefits:
- Total Amount due for a period can be modified to be the correct amount if Invoices are processed with incorrect Tax Jurisdictions or rates
Roles:
- Controller
- AP Entry Clerk
Additional Content
- The goal of the adjustment is to select all invoices thru a date and quickly mark all of them ready for payment.
- With that said, various reasons can create the need for an adjustment:
- Book an entry to reverse a tax accrual that should not have occurred
- enter a credit for the Tax Jurisdiction Vendor and put the amount in a non-edit rule account to hold the amount temporarily
- then enter a credit to the distribution (Job, Work Order, etc.) to remove the cost associated with the incorrect accrual and clear the temporarily hold
- Book an additional sales tax accrual if a rate was not updated at the original time
- charge a tax expense account or enter for each distribution charged
- accrue the balance in the payable account
- Book an entry to reverse a tax accrual that should not have occurred
- With that said, various reasons can create the need for an adjustment:
Location:
- Accounts Payable > Invoices > Invoice & Credit Memo Entry
Video: