Taxing Entity Maintenance

Taxing entities are used to calculate taxes on sales invoices and customer credits. When an entity is assigned to a customer, the values in the entity are used to calculate a tax amount every time an invoice or credit is posted for that customer. If an individual invoice or credit is not taxable, a tax record will still be written to the database, but all tax amount values will be $0. Up to four entities can be assigned at the customer and the customer location level.

For each entity assigned to an invoice (or credit), one tax record will be created at the invoice level for taxes related to minimum order upcharges and freight (if the freight is taxable for this entity). If there is no upcharge or freight, a $0 record will still be created. One record will also be created for each line on the invoice. If an individual line is not taxable, a $0 record will still be created.

When the invoice is posted, the account associated with the entity will be used to record taxes in the general ledger.