The Tax Management (TX) module provides organizations with centralized tax configuration, management, and reporting. Integrated with other financial modules allows you to collect tax information from all financial documents into one single repository and generate reports required for tax filing.
Flexible Tax Configuration
Acumatica provides support for Sales, Use, Withholding, VAT and Reverse VAT taxes. For each tax you can specify multiple rates with different start and end dates as well as minimum and maximum tax amounts. Taxes can be calculated on each line item or the entire document amount. Taxes can be calculated on other taxes or only on line item charges.
Integration with Financial Modules
The Tax Management module is integrated with all Acumatica modules that require tax calculation. Tax calculation is performed automatically based on the tax zone assigned to customer, employee or vendor record, and the tax category assigned to inventory items. Manual tax adjustments are also possible. Calculated tax is posted to a dedicated tax liability account in the general ledger and to designated accounts in the Tax Management module for future tax reporting.
Automatic Offset with Accounts Payable
Acumatica allows you to represent tax agencies as vendor accounts. Within the tax vendor account, you can specify the frequency of tax reporting and assign a vendor code to the tax. Each tax period, you can prepare tax reports for the tax vendor and then close the tax period. Acumatica will automatically generate a bill in accounts payable that will offset tax liability for reported period with the AP account associated with the tax agency.
- Flexible Tax Reporting: For each tax authority you can configure the tax reporting requirements for each tax you are required to pay or report. By configuring different tax buckets you can generate summary reports or retrieve the tax details for each tax zone. With these flexible options you can prepare all the statistical information required by tax authorities for filing tax reports.
- Tax Transactions Drill Down: Acumatica maintains a record of each tax transaction posted to the GL, including the module the transaction was posted from, the taxable amount, the tax amount, the reference number, and the document type of the original transaction. You can use this report for reconciling calculated tax with GL module as well for tracing tax amounts to the original transactions.
- Direct Tax Adjustments: Prior to closing the tax reporting period you can review tax reports and enter corrections to the tax and taxable amounts directly from the Tax Management module. Corrections will update the specified tax liability account in the general ledger as well as the statistical tax information.
- Audit Trail: The Tax Management module provides a complete audit trail of all tax related transactions. The system maintains the details of all tax related documents, including the originating module, reference numbers, and date of the record. Any adjustment can only be done through auditable transactions.