QAD 2017 Enterprise Edition > User Guides > Global Tax Management > Implementing GTM > Setting Up GL Accounts
  
Setting Up GL Accounts
GTM calculates tax amounts separately for each tax rate. Before you set up tax rate records, verify that you have all the necessary tax accounts and sub-accounts in the general ledger (GL) chart of accounts. If any are missing, set them up.
All accounts referenced in tax rates—except the discount accounts—must be of type Tax Control. The discount accounts are of the type Standard. The system validates the account type and displays an error if the account has the wrong type.
Note: Tax Control accounts support only sub-account analysis. No cost centers can be defined.
Two accounts are provided for each type of tax: one for invoices and one for credit notes. If you do not want to track these amounts separately in the general ledger, you can specify the same account for each. Otherwise, the account pairs have the same function.
Depending on the nature of your tax rates, some or all of the tax accounts listed in Tax Amounts Posted to GL are represented in the general ledger.

Tax Amounts Posted to GL
 
Account
Explanation
Sales Tax Invoice and Sales Tax Credit Note
A liability credited for sales tax payable. It is updated by Invoice Post and Print (7.13.4) and the Customer Invoice function for invoices, invoice corrections, credit notes or credit note corrections.
Sales Tax Absorbed and Sales Tax Absorbed Credit Note
A liability credited when your company absorbs tax instead of charging it to the customer. This occurs, for example, when your company gives an item to a customer. Although the sales price is zero, you still pay tax on it. It is updated by Invoice Post and Print (7.13.4).
AP Tax Invoice and AP Tax Credit Note
An asset debited for recoverable amounts or a liability when treated as a contra account to Sales Tax Invoice. It is updated by Supplier Invoice (28.1.1.1) for invoices, invoice corrections, credit notes, and credit note corrections, as well as Purchase Order Receipts (5.13.1) and PO Shipper Receipt (5.13.20).
AP Tax Retained and AP Tax Retained Credit Note
A liability credited when you retain tax on purchases and remit it directly to the government instead of to the supplier. It is updated by Purchase Order Receipts (5.13.1) and PO Shipper Receipt (5.13.20).
AR Discount Account
If populated, separately tracks discount amounts per tax rate when the credit terms discount is applied to the tax amount on early payment of customer invoices.
AP Discount Account
If populated, separately tracks discount amounts per tax rate when the credit terms discount is applied to the tax amount on early payment of supplier invoices.
Sales Suspended Tax Invoice and Sales Suspended Tax Credit Note Acct
A liability credited for suspended tax payable. It is updated by Invoice Post and Print (7.13.4) and the Customer Invoice function for invoices, invoice corrections, credit notes, or credit note corrections.
AP Delayed Tax Invoice and AP Delayed Tax Credit Note Acct
A liability credited for delayed tax payable. It is updated by Supplier Invoice (28.1.1.1) for invoices, invoice corrections, credit notes, and credit note corrections, as well as Purchase Order Receipts (5.13.1) and PO Shipper Receipt (5.13.20).
After you update your chart of accounts, specify the default tax account codes for new tax rate records in Domain/Account Control (36.9.24). If necessary, you can later override these codes for individual tax rates.
Note: There are no default AR and AP Discount accounts. If the fields are populated, discount amounts are tracked by tax rate. If the fields are not populated, discount amounts are tracked by the accounts defined for the GL bank or cash accounts used for the payment.