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Setting up Taxes in Intacct

Problem Details:

How to setup taxes to automatically calculate?

 

Solution:

 There are two ways to setup taxes in Intacct:

  • Basic - where the user must manually enter the tax amounts into the appropriate field.
  • Advanced - where the taxes are calculated automatically by the sytsem

The following is a brief overview on how to setup Advanced taxes for Accounts Receivables.

  1. Enable Subtotals and Tax Schedules:  go to Accounts Receivables / Setup / Configure Accounts Receivables.  In the 'Enable Functionality' section, turn on the two options: Display Tax and Subtotal Fields for Invoices and Enable Tax Schedules.
  2. Create Account Label Tax Groups: go to Accounts Receivables / Setup Lists / Account Label Tax Groups to add a tax group.  Account labels will be assigned to an account label tax group and will be taxed according to the formula assigned to the Account Label Tax Group.
  3. Create Account Labels for Taxables Items:  go to Accounts Receivables / Setup Lists / Account Labels.  Add new account labels for all items that are being sold, assign to a GL account and ensure that the 'Taxable' option is selected.  Assign to an Account Label Tax Group. (do not select 'Subtotal' or 'Is Tax' checkboxes)
  4. Create Account Labels for Taxes:  go to Accounts Receivables / Setup Lists / Account Labels.  Add new account labels for the actual taxes to be charged.  Select the 'Subtotal' and 'Is Tax' checkboxes.
  5. Create Contact Tax Groups: go to Company / Setup Lists / Contact Tax Groups.  This allows one customer to be taxed in different ways depending on the contact tax group used.
  6. Setup Customers to be Taxable: go to Accounts REceivables / Customers.  Edit (or add) the customer record.  On the Additional Information tab, under the Invoicing details section, select the checkbox for 'Taxable'.  Assign to a Tax Group (this is a Contact Tax Group).  Update the contacts on the Contact List tab.
  7. Setup Contacts to be Taxable: go to Company / Contacts.  Add (or Edit) a contact. On the Additional Information tab, set the contact to be Taxable, and select the appropriate Contact Tax Group. 
  8. Create Tax Authorities: Tax authorities are agencies for whom you are collecting sales and other taxes and to whom these taxes will be remitted. Go to Accounts Receivables / Setup Lists / Tax Authority.  Add the tax authority and assign to a Vendor to whom the collected taxes will be paid.
  9. Create Tax Details: Add the detail for the taxes, including the tax percentage and the Account Label for that tax.
  10. Create Tax Schedules: A tax schedule is where one or more tax details are assigned.  It is this schedule that is called when the tax subtotal is applied for taxable items sold to taxable customers. Add a schedule, and assign all the relevant Tax Details to it. 
  11. Assemble the Tax Schedule Maps: Create a Map to link the Account Label Tax Group, Contact Tax Group, and Tax Schedule together.
  12. Check an invoice to ensure that the setup is giving the desired result: Enter the header information and the line items in the Entries section.   In the Subtotals section, click on 'Calculate'.  The taxes will populate below. 

 

 

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