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The following examples show how tax, nonrecoverable amounts, and the setting of certain options affect general ledger postings in Accounts Payable.

 Example - Nonrecoverable Amount Allocated to Vendor's Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance.

Invoice Amount	1100.00
Sales Tax of 10%	100.00
Nonrecoverable of 55%	55.00
Subject to Discount	1000.00

 

G/L Account	Debit	Credit
Vendor Expense Account	1055.00
A/P Sales Tax Account	45.00
Accounts Payable Account	_______	1100.00
	1100.00	1100.00

 

 Example - Nonrecoverable Amount Not Allocated to Vendor's Expense Account

The following invoices were posted with the Expense to Vendor/Item check box cleared in Sales Tax Code Maintenance.

Invoice Amount	1100.00
Sales Tax of 10%	100.00
Nonrecoverable of 55%	55.00
Subject to Discount	1000.00

 

G/L Account	Debit	Credit
Vendor Expense Account	1000.00
Nonrecoverable Tax Account	55.00
A/P Sales Tax Account	45.00
Accounts Payable Account	_______	1100.00
	1100.00	1100.00

 

 Example - Posted with Use Tax

The following invoices were posted with the Use Tax check box selected for the invoice.

Invoice Amount	1000.00
Sales Tax of 10%	0.00
Nonrecoverable of 100%	0.00
Subject to Discount	1000.00

 

G/L Account	Debit	Credit
Vendor Expense Account	1000.00
Nonrecoverable Tax Account	100.00
A/P Use Tax Account		100.00
Accounts Payable Account	_______	1000.00
	1100.00	1100.00

 

 Example - Freight Amount Posted to General Ledger Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance and the Expense Freight Separately check box selected in Accounts Payable Options.

Invoice Amount	1125.00
Freight Amount	25.00
Sales Tax of 10%	100.00
Nonrecoverable of 55%	55.00
Subject to Discount	1000.00

 

G/L Account	Debit	Credit
Vendor Expense Account	1055.00
A/P Sales Tax Account	45.00
Freight Expense	25.00
Accounts Payable Account	_______	1125.00
	1125.00	1125.00

 

 Example - Freight Amount Not Posted to General Ledger Expense Account

The following invoices were posted with the Expense to Vendor/Item check box selected in Sales Tax Code Maintenance and the Expense Freight Separately check box cleared in Accounts Payable Options.

Invoice Amount	1125.00
Freight Amount	25.00
Sales Tax of 10%	100.00
Nonrecoverable of 55%	55.00
Subject to Discount	1000.00

 

G/L Account	Debit	Credit
Vendor Expense Account	1080.00
A/P Sales Tax Account	45.00
Accounts Payable Account	_______	1125.00
	1125.00	1125.00

 

For more information, see:

Accounts Payable Repetitive Invoice Entry

Accounts Payable Invoice Data Entry

Manual Check and Payment Entry

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