Tax, Comp Tax, and Other Charges on AP Invoices

Invoice entry includes the ability to enter taxes and other special charges such as shipping. The Invoice entry screen includes a field for entering sales tax when it is charged by a vendor and included in a vendor invoice. The Washington Department of Revenue requires the payment of use tax when the vendor does not charge it directly. The taxes are paid directly to the Washington Department of Revenue as compensating (comp) tax. Calculate comp tax by checking the Comp Tax option and selecting the building site where the item will be used.

Taxes should either be entered directly in the Tax field or calculated by checking Comp Tax and selecting the proper site. Entering a tax amount disables the Comp Tax option; checking Comp Tax disables the Tax field. Shipping and other special charges may be entered in the Other field.

When invoices are created, a warning message is displayed if an account does not have sufficient funds for payment. Accounts without sufficient available funds are then highlighted in red on the invoice. If comp tax was distributed on the account, two asterisks will also display on the invoice.

Click FINANCIAL MNGMNT.
Click A/P.
Click INVOICES.
Click +ADD if creating a new invoice or EDIT for an existing invoice.
Check the Comp Tax field if tax will be owed, but is not included on the vendor invoice. (This disables the Tax field.)
Enter any additional charges, such as shipping, in the Other field, if included on the vendor invoice.
Click SITE or enter a building code to find the tax district for a building site where the item will be used:
1. Select a Site/tax district record from the Site Information display.
2. Click SELECT to choose your selection.
Once the invoice has been entered and the dollars distributed to account codes, click SHOW COMP TAX to calculate and display the tax owed. (This button is disabled if the invoice already displays sales tax.)
- A message box displays the Tax District ID, Tax Rate based on the selected Site, and Calculated Comp Tax.
- Do the following if errors exist in the record:
- 1. Select the account record from the Invoice Distribution display.
  2. Either click EDIT or double-click the selected account record.
  3. Check Taxable if sales tax is payable.
  4. Make the desired changes to the amounts.
  5. Click OK to accept your changes or CANCEL to exit.
Click OK to accept changes and exit this screen.

Click FINANCIAL MNGMNT.
Click A/P.
Click INVOICES.
Click +ADD if creating a new invoice or EDIT for an existing invoice.
Enter the amount of tax due in the Tax field if it was included on the vendor invoice.
Enter any additional charges in the Other field, if included on the vendor invoice.

Invoices

Tax, Comp Tax, & Other Charges on AP Invoices