2.1.3.2.2.2. Tax Accruals
To Accrue Taxes associated with TimberScan Invoices.
1. Leave DrAccount and CrAccount with "Default Value".
This option accrues the tax value of an invoice as it would normally, as part of the Job or Regular (non-job) cost, For example if an invoice amount of $100.00 also has $5.00 of tax, the amount of $105.00 will be accrued to the Job Cost Information and/or General Ledger account specified in Job Cost Accrual Settings.
2. If you change and OVERRIDE the default value for the DrAccount and CrAccount for an individual tax rate, the tax associated with that rate will be separated out of the invoice distribution cost accrued separately as a debit to the DrAccount and a credit to the CrAccount. BE VERY CAREFUL. ONCE YOU CHANGE THE DrAccount and CrAccount, YOU CAN NOT CHANGE IT BACK TO DEFAULT.
TAX RATES ARE NOT TAX GROUPS. Timberline allows a user to set up Tax Rates and then to include the Tax Rates into Tax Groups. In the example below, the Metro Tax is 4.25% composed of the OR rate of 3% and the Metro rate of 1.25%.
In TimberScan, the tax lines in TAX ACCRUALS are related to Tax Rates. If you have a Tax accrual set for "OR" similar to below, it will accrue a separate tax at that "OR" tax rate anytime it finds a matching rate in Timberline. FYI: A Tax Rate can be part of multiple tax groups.
Ways to use this: If you wanted only the OR tax associated with OR Group to be used, simply set up an additional tax rate called OR1 with the same rate and information and add it to the MET group. Re-run your accruals and only one tax accrues. There are a variety of ways this can be used to accommodate special needs.
One Special Need: needing tax amounts excluded from their accruals. If you separate tax on your invoices but do not want the tax amounts accrued, you can achieve this by setting the Dr Account and Cr Account up with the same account number.
You can see below that both entries are to 10-6118.
In this example, $971.22 will accrue as a non-job invoice to Account 5170 as indicated in Accrual settings. The tax portion of 28.78 will be sent to Timberline but to the same account as a debit and credit entry. Also from above, the amount of $97.09 will accrue as a Job Cost entry sans tax.
