Sales Tax - Sales Posting

When invoices with sales tax amounts are processed during sales posting, the system posts the amount of sales tax payable to a General Ledger account.  The amount that is posted is the total from the invoice header record.  Since line item detail is used for reporting and the header total is used for updating the general ledger, it is important that the header and line item amounts are in agreement when the sales posting process is performed.  The Invoice Register report (which is used during sales posting) tests the line item tax amounts versus the header sales tax amount and it outputs errors if any edits or other activity have caused the amounts to disagree.

In the most recent version of the software, the sales tax liability account used during sales posting is based on the Autopost number stored within each Taxcode record.  The Taxcode in each line item is used to find the Autopost to be used for the line.  This Autopost is then used to find the GL sales tax liability account that should be updated during sales posting.  Header sales tax amounts (not tied to a specific line item) are posted using the Taxcode record in the sales order and invoice header.  In older versions of the software, the total amount of sales tax payable was posted to the GL account pointed to by Autopost number 370.


Adjusting Sales Tax