Thursday, April 16, 2015

Tax Account in Vendor Account Maintenance

So, have you ever wondered when the following account is ever used?  From Cards, Purchasing, Vendor, Accounts button...

This came up at a client this week, and got me to wondering.  As I have always entered tax accounts on the tax detail window, Setup, Company, Tax Details.  However, that is actually NOT required.  You can leave the tax detail account blank.  Yes. You can.

I bet you see where I am going with this, don't ya?  If....

  1. The tax account is populated on the tax detail, it will be used on a transaction for the tax liability
  2. If the tax account is blank on the tax detail, the system will look to the vendor tax account instead
So why would you want to have a tax account by vendor?  I think the best example I can think off is with use tax.  If you want to track those amounts by vendor in your GL (or by locality, setting each vendor in a location up with the same account instead of maintaining multiple tax details).

Total sidebar, here is a link to my favorite way to handle use tax in Dynamics GP without additional products.

Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a senior managing consultant with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.

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