About Posting Taxes
If you will be posting taxes in Accounts Receivable, you can specify whether to calculate taxes on invoices and/or cash receipts.
The Post Taxes section in AR Company Parameters allows you to specify whether to calculate taxes on invoices and/or cash receipts.
- Calculate Tax on Retainage – If you select this option, the retainage amount is included in the tax basis. When posting an invoice, the full tax amount is updated to the tax payables account and is due for payment. When unchecked, retainage is excluded from tax calculations.
- Distribute Tax to Retainage – With this option, retainage tax is tracked separately and is made payable at the time retainage is released. The tax basis amount for the invoice will exclude retainage tax; retainage tax is calculated separately and displayed in the Retainage Tax field. When the invoice is posted, the retainage tax is updated to the Credit GL Retg Account specified for the tax code (HQ Tax Codes, Add’l Opts tab). Then when retainage is released, the retainage tax is moved to the tax payables account and due for payment.
The Interface Taxes option in the JC Contracts allows you to specify whether the tax amounts will be interfaced to Job Cost. If checked, tax amounts are interfaced to the Job Cost item detail. If not checked, tax amounts are not interfaced to Job Cost. This may cause AR and JB invoice amounts to be different from Job Cost revenue detail and totals.