I have setup the Sale tax for my US entity. I have setup the sales tax authority as a vendor and has mapped a vendor account. But when I posted a sales order the sales tax payable is getting posted directly into the Sales Tax Payable account in GL instead routing through the sub ledger (Tax vendor account). Kindly help me out to sort out the mistake in my configuration.
Hi Sathyanaath,
Can you share a screenprint of the voucher and the transaction origin of that voucher created?
Also, can you share details of your sales tax setup especially the sales tax code and the calculation principles applied.
Many thanks,
Ludwig
Hi Sathyanaath Kalyanasundaram,
When you setup sales tax authority and link the vendor. Did you also link authority on Sales tax settlement periods screen? Did you also run the settlement process from Periodic Task >> Declaration > Report sales tax for settlement period? Once you run that routine, All tax codes associated with the settlement period will be settled and the tax liability will be posted to tax vendor account.
Junaid is correct. There are postings on a balance account and details are kept in Tax transactios. Once you run the Tax payment job for reporting to the authorities, it will calculate the balance due and create a vendor transaction. Then you can use the payment journal to also include the payment to the authority. You don't want to have a vendor transaction for every single Tax transaction.
Hi Sathyanaath Kalyanasundaram
Did it help you fixing your problem or do you need any additional information/Help from community?
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