Some Tax authorities’ offer tax rebates in specific percentage of the tax amount paid.
For Example: Invoice is of amount 100 INR and total calculated tax on this invoice is 10 INR, where Government allows you to take credit of 20% of total tax amount which is 2 INR here.
Can we easily setup such calculations in Sage 300 ERP? The answer is yes.
Now, Let us see how to configure these types of tax authorities in Sage 300 ERP.
Create/Use a Tax authority as shown in screen shot given below.
Go to the accounts tab you will see below screen
Fill in the Tax Liability Account as it is a mandatory field. Check the tax recoverable check-box map the appropriate account to which you need to expense out the tax amount.
Recoverable Rate: Here you have to define the Rate (%).
Below are the GL effects of AP Invoice which is applied Tax recoverable tax authority as per above example.
When you run the trail balance of Tax Recoverable account you get an accumulated amount of which you can take a tax credit from the Tax Authority.