Use Tax Code Maintenance

Use this screen to set up and manage sales and use tax codes for tracking amounts owed and paid to state and other government entities. Click Go to display the tax codes already set up, and use the Tax type display hyperlink to determine which tax types will show on the screen.

  • A sales tax code will add the sales tax amount to the vendor invoice and this amount will be posted to the invoice total amount.

  • A use tax code accrues use tax to a separate G/L liability account and will not add the tax amount to the vendor invoice.

For sales and use tax codes, the tax amount posts to the same G/L expense account as the invoice line item amount. If the line item posts to a job, the tax amount posts to the same job, phase, and cost type.

Sales tax and use tax codes may be set up as defaults in Vendors and in Job Cost > Tax Classification File Maintenance.

Tip: You can also copy codes from Accounts Receivable using the Copy AP Use Tax from AR utility. Then, during A/P Vendor Invoice Entry or Unapproved Invoice Entry, use the Amount field to record the use tax code.