Invoice Tax Region of the Suppliers and Supplier Sites windows

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Invoice Tax Name. Tax name that represents the tax charges you generally receive on invoices from a supplier. Usually determined by the shipping location to which your supplier sends good to you. The supplier value defaults from the Financials Options window, and the supplier site value defaults from the supplier.
When Payables defaults a tax name value to a document such as an invoice, it uses the Tax Name Defaults hierarchy you define in the Tax Name Defaults region of the Payables Options window. You can include Supplier and Supplier Site tax values in this hierarchy.

If the Tax Calculation Level option for the supplier site is Header, the Tax Name value defaults to the Invoices window. If the Calculation Level option is Line, the Tax Name value defaults to the Distributions window. You can override this default during supplier site entry and invoice entry.
If you use the Multiple Organization Support feature, you can enter a value in this field only at the supplier site level.
Offset Tax Name. You can use offset taxes to record zero-rated taxes on invoices.
Payables uses the supplier site offset tax name to create a default offsetting tax distribution for each default tax distribution on an invoice. You can use offset taxes to record the Value Added Tax (VAT) name and amount without paying VAT tax to the supplier (the tax distribution and the offset tax distribution net to zero). You can always override the default offset tax distribution on an invoice or manually enter additional offsetting tax distributions.
If you delete the Invoice Tax Name for a supplier, the system deletes the offset tax name from the supplier and supplier site and does not automatically assign any default tax to any new supplier sites you enter.
If you use the Multiple Organization Support feature, you can enter a value in this field only at the supplier site level.
Calculation Level. Select the level at which you want Payables to automatically calculate tax for this supplier or supplier site. This value defaults from the Payables Options window to the supplier, and from the supplier to the supplier site, and from the supplier site to the invoice. You can override the Calculation Level value if you enable the Allow Override option in the previous window. For detailed information,


    • Header. Automatically create tax distributions based on the following information in the Invoices window: Invoice Amount and Tax Name.
    • Line. Automatically create tax distributions based on the following information in the Distributions window: Distribution Amount, Tax Name, and Includes Tax check box.
    • None. Disable automatic tax calculation for this supplier or supplier site.
Allow Calculation Level Override. The automatic tax Calculation Level cascades in the following order: Payables Options -> Suppliers -> Supplier Site -> Invoices. You can adjust the default calculation level in the Supplier, Supplier Sites, and Invoices windows only if the Allow Calculation Level Override option is enabled in the previous window. If you have enabled this option for a supplier site, during invoice entry after you enter a Tax Name in the Invoices window, Payables opens a window in which you can change the calculation level. You can choose Line or Header, or you can choose None, which will disable tax calculation for the invoice.

You cannot enable this option in the Suppliers window if the Allow Calculation Level Override option is not currently enabled in the Payables Options window. You cannot enable this option in the Supplier Sites window if the Allow Calculation Level Override option is not currently enabled in the Suppliers window.

Rounding Rule. If you use automatic tax calculation, select the method you want the system to use to round the automatically-calculated tax amount. For example, the calculated tax is $5.988 and your Precision is 2 decimal places. If your Rounding Rule is Up, Payables will enter 5.99 for the tax amount.
Payables uses the rounding rule you select to calculate tax on invoices, recurring invoices, and expense reports. This value defaults from the Payables Options window to new suppliers, and from a supplier to the supplier's new supplier sites.
You can override this value at any level. If you update it in the Payables Options window, it will not affect existing suppliers and will default only to new suppliers. If you update this value in the Suppliers window, it will not affect existing supplier sites and will default only to new supplier sites. If you update it in the Supplier Sites window, it will not affect existing invoices and will be used to calculate tax on new invoices.
Payables rounds to the Minimum Accountable Unit if you entered a value for that field in the Payables Options window. Otherwise, it rounds to the Precision you enter. The examples below assume you are using a Minimum Accountable Unit of .01.

    • Up. Round up. For example, round $5.988 to $5.99
    • Down. Round down. For example, round $5.988 to $5.98
    • Nearest. Round to the nearest number, and if the difference between Up and Down is equal, round Up. For example, round $5.988 to $5.99
Distribution Amounts Include Tax. Enable this option if you use automatic tax calculation at the Line level, and you want Payables to subtract the calculated tax from distributions when Payables automatically creates tax distributions. For example, you enter a distribution for $110 and enter a Tax Name with a 10% tax rate. When Payables calculates the tax, it decreases the amount of the distribution you entered to $100, and creates a $10 tax distribution. You cannot enable this option if you select Header or None as the Calculation Level.
This value defaults from the Payables Options window to new suppliers, and from a supplier to any new supplier sites for the supplier. You can update the Distribution Amounts Include Tax check box for new and existing suppliers and supplier sites only if you enable the Allow Override (of Distribution Amounts Include Tax) Payables option.
Note that the Distribution Amounts Include Tax option does not apply to distributions created by Distribution Sets.