Set Up Taxes to Create A/P Invoices

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If the Payroll module is integrated with Accounts Payable, you can automatically create Accounts Payable invoices for payroll taxes when you update the Payroll Check Register. The invoices give you an easy way to create Accounts Payable checks to pay the taxes. Invoices are created for any taxes that have a vendor number specified.

Before setting up taxes, you must select the (Integrate with) Accounts Payable check box in Payroll Options.

To set up taxes to create Accounts Payable invoices

  1. Select Payroll > Setup > Company Tax Group Setup.
  2. Enter a tax group.
  3. In the grid on either the Main tab or the Additional tab, locate the tax.
  4. Enter the vendor number for the vendor to use on the invoice. You may need to scroll to the right to see the Vendor No. field.

  5. To group multiple taxes on one invoice, enter an invoice prefix. This is optional.

    The prefix, combined with the vendor number, is used to determine whether taxes are grouped on one invoice.

     

    Example data using the Federal tax group
    Tax Vendor Number Invoice Prefix
    Withholding 00-IRS 941WITHHOLD
    Employee Social Security 00-IRS 941-SS
    Employer Social Security 00-IRS 941-SS
    Employee Medicare 00-IRS 941-Med
    Employer Medicare 00-IRS 941-Med
    Employer Unemployment 00-IRS  

    For the taxes shown in the table above, the following four invoices would be created for vendor number 00-IRS for payroll journal number 000028:

    • 941WITHOLD-000028-00

    • 941-SS-000028-00

    • 941-Med-0000028-00

    • 000028-00

  6. Repeat the two previous steps for additional taxes as needed.
  7. Click Accept.

Accounts Payable invoices are created for this tax group when you update the Payroll Check Register. The invoice number is the prefix, if one was entered, plus the payroll source journal number plus the sequence number. You can use the Update to A/P Invoice Log to review the invoices that are created.

You can then view, modify, or delete the invoices in A/P Invoice Data Entry before updating the Accounts Payable Invoice Register.

The invoice date is the same as the Payroll Check Register posting date. The general ledger account number entered in Company Tax Group Setup is used for the general ledger account on the invoice.

The following are the default comment formats for the taxes: