Tax Calculation Type

couberpu

Please Help!

I am confused on what setup is correct if I need to use sales tax. Should I use "NORMAL VAT" or "Sales Tax"? If I use NORMAL VAT, will I can still get proper sales tax posted ?

Thanks,
CouberPu

AlexWiley

What? I'm confused- you should use Sales Tax for Sales Tax. Are you getting an error or something?

couberpu

In G/L setup, Tax Posting Setup. The tax calculation type was "Normal VAT" before we got sales tax granule. Now we just got sales tax granule, should I change it to sales tax or leave it at Normal VAT? I already had sales lines and purchase lines with tax calculation type set for Normal VAT! But I also like to have future posting ledger entry shown under tax jurisdictions.

Please help me with advises!


Thanks,
CouberPu

AlexWiley

Oh! Ok, that makes more sense now. You can switch it but just make sure you notate the change and make sure the users know to enter it. A monitoring method would be to run a report every month for tax lines with tax calculation type as normal vat to make sure there are no entries after you start using sales tax- or just delete the line when you switch over. Depending on the size of your AR/AP departments you might want to set up the sales tax granule, do a backup to test, and have the different departments look at it and make entries and have the controller sign off on the changes just in case you get audited or do volunteer audits.

couberpu

AlexWiley wrote:

Oh! Ok, that makes more sense now. You can switch it but just make sure you notate the change and make sure the users know to enter it. A monitoring method would be to run a report every month for tax lines with tax calculation type as normal vat to make sure there are no entries after you start using sales tax- or just delete the line when you switch over. Depending on the size of your AR/AP departments you might want to set up the sales tax granule, do a backup to test, and have the different departments look at it and make entries and have the controller sign off on the changes just in case you get audited or do volunteer audits.

Can I just change the values on these line tables? :oops:

AlexWiley

couberpu wrote:

AlexWiley wrote:

Oh! Ok, that makes more sense now. You can switch it but just make sure you notate the change and make sure the users know to enter it. A monitoring method would be to run a report every month for tax lines with tax calculation type as normal vat to make sure there are no entries after you start using sales tax- or just delete the line when you switch over. Depending on the size of your AR/AP departments you might want to set up the sales tax granule, do a backup to test, and have the different departments look at it and make entries and have the controller sign off on the changes just in case you get audited or do volunteer audits.

Can I just change the values on these line tables? :oops:

Haha, yes that would be much easier

If you don't have restrictions on making those kinds of changes (S/O, international reporting/auditing requirements) then go for it.