When a supplier offers cash discount, sales tax must be based on the discounted amount. This job aid is to demonstrate how to record the correct sales tax amount on vouchers with discount terms. If users have overpaid sales tax, the best practice is to contact supplier and ask for a credit memo which can be netted against future payments or input in the system as an adjustment voucher.
• Sales Tax Amount is user entered amount on the voucher and Pay Cycle will pay the amount entered on the Voucher.
• At time of Voucher Entry the system will calculate the Sales Tax based on the Sales tax Code and display the calculated Sales tax so the user is aware of the difference and make decision to go with what is entered or change it to match the calculated Sales Tax amount.
• At time of Payment, the system will not change the Sales Tax automatically. How much Sales Tax paid on the Voucher has to be manually changed by the User.
• If the payment ended up being made outside the discount term (e.g. user manually changed scheduled due date, voucher got approved late) and the voucher can no longer pick up the discount, then CCSF would be underpaying sales tax. In this case (or if you input a new voucher already outside discount term) follow TOPIC 2 in this document.