Automatically Create Tax Transactions

1. On the Account Tax Code Defaults form, assign an account with the proper Tax Code, Exempt Code, and Tax Account set. You cannot leave the Tax Code field blank. See the example to determine when the tax entries or references are created.
2. On the Journal Entries form, select or clear the Taxable check box. If you select this check box, the taxable tax code populates the Tax Code field. This is the tax code you set up on the Account Tax Code Defaults form. If you clear the Taxable check box, the exempt tax code is displayed in the Tax Code field. This code also comes from the Account Tax Code Defaults form.
3. On the Journal Entries form, adjust the tax code in the Tax Code field if necessary.
4. On the Journal Entries form, adjust the total amount in the Total Amount field if necessary.
5. Post the journal transactions. If no journal compression takes places, the records are updated and are eligible to display on the Consumption Tax Report. If journals are compressed, the record is deleted.