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How to Enter Tax Only Line

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					FACTSHEET:
Enter Tax Only Line (Customs Invoices)


In this section you will learn how to enter a tax only line
which is usually on an invoice received from your courier
company (FEDEX, DHL) where they are invoicing you for
customs duty paid on your behalf.

So there will be a requirement to enter a                                       tax and then lines for items that have tax
tax only line to capture this tax that has                                      added to them. The following guide will
been paid often, there will be additional                                       outline how to do this. The following
charges on the invoice as well. So there is                                     screen shots are taken from a R12.1.3
a requirement to enter a line that is just for                                  environment.


Step 1.
Enter Header information as normal.




eBiz Answers Ltd. FACTSHEET: Enter Tax Line Only (Customs Invoice). Jan 2013.                                                1
FACTSHEET:
Enter Tax Only Line (Customs Invoices)



Step 2.
Go to the lines and first enter your ‘Tax Only’ line by selecting the type as ‘TAX’.




     Note:
     You must enter the tax only line firsts then add any additional ‘Item’ lines. If you
     do not enter the tax only line first then the tax will not calculate correctly.


Enter the tax amount then scroll to the Tax                                     we receive from our courier companies on
details – these are only available when the                                     behalf of the custom duties that they have
line type is TAX. Enter your tax details.                                       paid. ES VAT TAX ONLY has been set as
The tax I am using here is ES VAT TAX                                           a 100% tax rate.
ONLY which is for our tax only lines that




Important:
Before entering any other lines, click on the ‘distributions’ button for the tax. If you do not
do this then no other tax lines will be created for your item lines. By doing this, you
generate the distribution for the tax only line.




eBiz Answers Ltd. FACTSHEET: Enter Tax Line Only (Customs Invoice). Jan 2013.                                                2
FACTSHEET:
Enter Tax Only Line (Customs Invoices)



Step 2 Continued.
Go to the lines and first enter your ‘Tax Only’ line by selecting the type as ‘TAX’.




Once you have seen the distribution, you can save and close this screen. You can now
enter your item line types. Below I have also used a ‘tax override’ so that the tax on line 2
will be standard but line 3 the tax will be exempt. Once done, click the calculate tax
button.




Enter the tax amount then scroll to the Tax                                     we receive from our courier companies on
details – these are only available when the                                     behalf of the custom duties that they have
line type is TAX. Enter your tax details.                                       paid. ES VAT TAX ONLY has been set as
The tax I am using here is ES VAT TAX                                           a 100% tax rate.
ONLY which is for our tax only lines that




You can see that 2 additional tax lines have been created for lines 2 and 3.




eBiz Answers Ltd. FACTSHEET: Enter Tax Line Only (Customs Invoice). Jan 2013.                                                3
FACTSHEET:
Enter Tax Only Line (Customs Invoices)



Step 2 Continued.
If you click on the tax details you can see that 3 tax rates have been created for the 3
lines, including the tax only line for line 1.




Once you have seen the distribution, you can save and close this screen. You can now
enter your item line types. Below I have also used a ‘tax override’ so that the tax on line 2
will be standard but line 3 the tax will be exempt. Once done, click the calculate tax
button.




Step 3.
Ensure the ‘Detail Tax Lines’ is set to shipment so you can see the tax for all lines.
If you scroll to the right, you can see that line 1 is set as ‘manually entered’ and you must
enter the place of supply as this is likely to be blank. You can choose any value here but
best to use the same as the other lines.




eBiz Answers Ltd. FACTSHEET: Enter Tax Line Only (Customs Invoice). Jan 2013.                   4
FACTSHEET:
Enter Tax Only Line (Customs Invoices)



Step 3 Continued.
Scroll further to the right and you can see that the first line is set as ‘Tax only Line’.




Validate and account your invoice.


     Note:
     Ensure that you have added the expense account for the tax used in the ‘Tax
     Only Line’ otherwise the distributions will fail. This should already have been done
     but if not, please refer to the tax specialist BA to resolve your issue.




This FACTSHEET was produced by eBiz Answers Ltd. We hope it was helpful.
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eBiz Answers Ltd. FACTSHEET: Enter Tax Line Only (Customs Invoice). Jan 2013.                5