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Hello,
Could anyone please tell me what will happen if I set vendor account in Sales tax authority?
Is there any benefit by setting the vendor?
Thank you!
Hello EmilyK,
You don't have to.
If you set up a vendor in the sales tax authority form then the sales tax processing at the end of the month will post a liability directly against this vendor account so that you can pay your tax office with the next AP payment run.
If you are not setting up the vendor then the tax liability is posted against the settlement account that you can setup in the posting profiles and you would have to initiate the payment transfer yourself later on.
It's a choice that you have here.
Best regards,
Ludwig
Hi,
Based on my experience while working in EU,
I prefer to keep vendor in tax auth,
This helps accountant to check the liability easility by just going to vendor transactions and then they settle that.
You can consider to have a setup like below.
Create vendor group such as tax auth.
Assign the group to this vendor and adjust posting profile accordingly.
And then add the same vendor k to tax auth.
Let us know if this is fine with You.
Hi Ludwig,
Thank you for your reply!
It was very helpful to understand overview of the function.
EmilyK
Hi Ramit,
Thank you for your reply and the steps to setup.
I will try following the steps and talking to my client based on your suggestion.
Appreciate it!
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