AR-L  Transfer Sales Taxes

Purpose of Program

Use this program to transfer the sales taxes held in the GL liability accounts to Accounts Payable.  The amounts transferred will appear in the AP vendor records where they can be selected for payment by AP check.  These amounts include all of the liability accounts set up in SM-E  Enter Tax Codes, for the appropriate vendors.  The amount outstanding is updated every time invoices are posted, and with every transfer.  You may choose which amounts and what portion of the amount to transfer.

Before running this program, you must have entered appropriate vendors for your sales tax withholding in AP-A  Enter Vendors

This program is run whenever sales taxes are due for payment.

Multi-Currency Processing

If you have multi-currency processing enabled at IM-A  International Configuration, you can choose to pay tax authority vendors in another currency.

Even though the sales tax payable amount was originally converted and posted in base currency at the time of the original transaction, the amount of the sales tax owed is stored in source currency for purposes of this program.  When you transfer sales taxes stored in source currency, the program will transfer the amount in the currency assigned to the tax authority vendor in AP-A  Enter Vendors.

If the tax authority vendor is set up to use source currency, a credit is made to this currency's AP Control account.  The source currency amount is converted to base currency, and then a debit for this amount is made to your default Sales Tax Payable account.  The difference between the two amounts is posted to your F/E Gain/Loss-Trxns account.

If the tax authority vendor is set up to use base currency, the source currency amount is converted to base currency and a credit for this amount is made to your base currency's AP Control acct.  The debit entry is made to your default Sales Tax Payable account.

General Program Operation

If there are no outstanding amounts to transfer, a message to that effect is displayed and you are returned to the main menu.

If there are amounts to transfer, the cursor is placed in the Amount to Transfer field, opposite the Amount Outstanding.  The entire outstanding amount is offered as a default.  You can press <Enter> to record the default amount for transfer, or type in an amount to transfer and then press <Enter>.  Repeat this operation for each amount you want transferred.

When you have recorded the amounts you want transferred, press F10 (or click on the Save button) to save your choices.  The amounts are automatically transferred to Accounts Payable against the vendor accounts you defined for this operation when setting up your Tax Codes (see SM-E  Enter Tax Codes).  You do not need to transfer all amounts; you can press F10 (or click on the Save button) at any time to save and transfer only the amounts you want.

When you press F10 (or click on the Save button), the Next AP Invoice Number is updated, the vendor account outstanding amounts are updated, the transaction is posted to the General Ledger and the Purchases journal, and the outstanding taxes in SM-E  Enter Tax Codes are updated.