Tax Basis

This field is enabled only if the Post Taxes on Invoices option is checked in AR Company Parameters.

Enter the amount on which taxes are to be calculated for this invoice line. Defaults an amount as follows:

  • If the Calculate Tax on Retainage option is unchecked (in AR Company Parameters), defaults the line amount less retainage (taxes will not be calculated on the retainage portion).

  • If the Calculate Tax on Retainage option is checked, defaults the line amount including retainage.

  • If the Calculate Tax on Retainage option is checked, but you also checked the Distribute Tax to Retainage option, defaults the line amount less retainage (tax will be calculated on the retainage separately).

Note: Amounts entered here do not affect the line amounts, nor do they affect retainage or discount calculations.