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Slide notes: To understand how Tax positioning is achieved in IES, we first do an example of manual positioning. In a simple Accounting system, it is usually possible to process a Multi Journal where we will debit and credit Tax Accounts as part of the Journal, as necessary.

 

 

 

Slide 2

Slide notes: In other words, if there is a need to process VAT, GCT, PPN, CGT or another Tax type as may apply in our country, or even Withholding Tax, then we may manually capture the appropriate Tax Debits and Credits. In IES, we can do the same.

 

 

 

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Slide notes: So now that we have seen how we can process Tax on a Journal, it is time to see how we can use the automatic Tax positioning options in IES.

 

 

 

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Slide notes: Here we have many Journal options, some with Tax and others without.

 

 

 

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Slide notes: When we use a NO TAX Journal option, then it means that the Journal is fully processed with it's respective Debits and Credits, but without processing any VAT or other Tax on the transaction.

 

 

 

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Slide notes: And when we use a Journal with a Tax option, then we simply select the Tax Type to process, and the rest will be performed automatically.

 

 

 

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Slide notes: By selecting the Tax Type as shown in this example, there is no need to calculate the Tax portion or capture it. The system will automatically process the correct Tax Debits or Credits, by getting the Tax Rate to apply from the selected Tax object, and the User does not need to do anything else about the Tax.

 

 

 

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Slide notes: On a Multi Journal, a Tax Type may be selected by line.

 

 

 

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Slide notes: So, in this example, we have Tax Type 15 used on line 1. On the next Journal line, the system will default to the Tax Type last used, and we can use the same or change again.

 

 

 

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Slide notes: If this line has no Tax processing, it can be changed to 'No Tax'.

 

 

 

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Slide 50

Slide notes: So, we can say that Tax positioning on Journals is achieved by selecting either No Tax or the appropriate Tax Type, and nothing further has to be done, because the system will take care of the rest.