Invoice Tax is an optional feature of the Acquisitions module. This feature helps you to apply taxes as needed to invoices and invoice lines, and to report how much tax is paid and refunded in acquiring materials.
The Invoice Tax feature is disabled in a standard WorkFlows installation. Contact SirsiDynix Customer Support to have Invoice Tax enabled on the library server.
The tax features of zero rated tax, tax rebates, vendor tax exemptions, and tax included in invoice line amounts can be enabled or disabled individually, as desired, in the Acquisition tab of the Global Configuration wizard. Refer to Global Configuration Wizard for information.
Tax Features
The following list briefly describes the Invoice Tax feature. See FAQs: Applying Invoice Taxes for more detailed information on recording taxes on invoices.
Customizable Tax Policies
You can configure the Acquisitions Tax, Tax Structure, Tax Handling Map, and Acquisitions global configuration policies as needed for your library or library system.
| • | Acquisitions Tax policies establish individual taxes and their associated tax rates. Separate tax rate policies might be established for each national tax, such as VAT or GST, and for each state, county, or provincial tax. |
| • | Tax Structure policies specify up to three tax rates and the relationship between the taxes. A tax structure might specify the combination of a national and provincial tax, or state and county tax, that a library in a particular location must track. |
| • | Tax Handling Map lines determine how taxes are applied when invoice lines are created for ordered materials. The map can be configured to apply invoice taxes based on acquisitions material type. Invoice lines may be exempt from taxes, may be subject to standard taxes or zero rated taxes, or may generate a tax rebate. |
| • | The Acquisition tab in the Global Configuration wizard controls the availability of optional tax features. The use of zero rated tax, tax rebates, vendor tax exemptions, and tax included in invoice line amounts can be enabled or disabled individually, as desired. For example, if you purchase materials from a small vendor that has a tax exempt status, you can enable the vendor tax exemptions feature so the fields you need to work with a tax exempt vendor will be available in vendor records and invoices. |
Automatic Calculation of Invoice Taxes and Tax Rebates
You can set up the Invoice Tax feature so that taxes and tax rebates (if applicable) are calculated automatically for invoices.
| • | The Session Settings Wizard: Acquisitions and Selection Lists tax properties specify whether tax will be calculated automatically for each invoice line as it is entered, and the default tax handling to use when applying taxes to the invoice line. When tax is calculated automatically, you may choose between two methods for funding system-maintained tax lines. |
| – | Charge taxes and/or apply tax rebates to a default fund. A single tax invoice line will be created for each tax or tax rebate specified in the tax structure. The default fund is specified in the Session Settings properties. |
| – | Charge taxes and/or apply tax rebates to the funds used in the orders for taxed materials — even when the funding of the order uses multiple funds or multifunding. Taxes on amounts linked to fund or linked using proration (usually shipping and handling or processing fees) will be charged to a default fund. The default fund is specified in Session Settings properties. One tax invoice line for each tax or tax rebate in the tax structure will be created to correspond to each taxable line on the invoice. |
| • | When tax is automatically calculated, and taxes are charged to a default fund, one set of Tax/Fund and Rebate/Fund linked invoice lines (one line for each tax or tax rebate in the tax structure) accumulates the tax for the entire invoice. |
Note: Tax invoice lines and/or tax rebate lines are not calculated and added automatically if the Tax Exempt Vendor field in the invoice is set to Yes. SirsiDynix Symphony checks the Tax Exempt field setting in the invoice, not the vendor record, when modifying an invoice. The Tax Exempt field in the vendor record is checked only when an invoice is created.
| • | When tax is automatically calculated, and taxes are charged to the funds used in the orders for taxed material, a set of Tax/Adjust and Rebate/Adjust linked invoice lines (one line for each tax or tax rebate in the tax structure) is created for each taxable line on the invoice. |
Note: Tax invoice lines and/or tax rebate lines are not calculated and added automatically if the Tax Exempt Vendor field in the invoice is set to Yes. SirsiDynix Symphony checks the Tax Exempt field setting in the invoice, not the vendor record, when modifying an invoice. The Tax Exempt field in the vendor record is checked only when an invoice is created.
Manual Calculation of Invoice Taxes and Tax Rebates
When tax is not automatically calculated, you can add tax invoice lines and tax rebate lines (if applicable) manually. For each tax line, you may select a link type of either Tax/Fund or Tax/Adjust; for each tax rebate line, you may select a link type of either Rebate/Fund or Rebate/Adjust. In both cases, you must choose an Acquisitions Tax policy from among the tax policies specified in the tax structure selected at the invoice level. When you select the Tax/Fund or the Rebate/Fund link, you must specify a fund that will receive the charge or rebate. When you use the Tax/Adjust or the Rebate/Adjust link, you must specify the order ID of the taxed item. The tax is charged against the funds used in the order, or the tax rebate is applied to the funds used in the order.
You cannot add tax invoice lines or tax rebate lines manually if the Tax Exempt Vendor field in the invoice is set to Yes. SirsiDynix Symphony checks the Tax Exempt field setting in the invoice, not the vendor record, when modifying an invoice. The Tax Exempt field in the vendor record is checked only when an invoice is created.
Application of Invoice Tax Settings When Creating Invoices
As you begin to create an invoice, you can specify the tax structure, who collects the tax amounts, and whether the invoice line amounts in the invoice include tax amounts.
| • | A tax structure can be specified for each invoice to indicate the taxes and/or tax rebates to be applied to items on the invoice. In the workstation, you can specify a default tax structure in the invoice properties. |
As you add lines to an invoice, each line has one to three tax handling settings so you can indicate how each of the taxes or tax rebates specified in the tax structure of the invoice are applied to the ordered material.
| • | For each invoice, you may specify whether tax is paid to the invoice vendor, or directly to the government agency that levies the tax. The Tax Paid to Vendor setting in the invoice is taken from the Tax Paid to Vendor field in the vendor record. |
| • | If the Tax Included in Invoice Line Amount policy in the Global Configuration wizard is set to Use Tax Included in Invoice Line Amount, you may specify whether tax is included in each invoice line amount when you create an invoice. The Tax Included in Invoice Line Amount setting in the invoice is taken from the Tax Included in Invoice Line Amount setting in the vendor record. The invoice setting can be modified. When taxes are calculated automatically, SirsiDynix Symphony uses the Acquisitions session settings, tax structure, and tax handling map to calculate taxes and tax rebates (if enabled and applicable) and to divide the vendor final price including tax into invoice line amounts, tax invoice line amounts, and tax rebate line amounts (if applicable). |
Tracking Invoice Tax Totals
Certain fields in an invoice keep track tax amounts and non-tax amounts in an invoice.
| • | The Subtotal field of the invoice record stores a running total of all non-tax amounts on the invoice. |
| • | The Tax Total field of the invoice record stores a running total of all tax amounts and tax rebate amounts on the invoice. The invoice record also maintains totals for each individual tax or tax rebate specified in the invoice tax structure. |
| • | For invoices in non-native currencies, all totals are tracked in both native and non-native currencies. |
| • | Invoice reports can report grand totals, subtotals, tax totals and individual tax totals for selected invoices. |
Listing Taxes by Vendor or Fund
You can use reports to see how much tax has been applied to a vendor’s invoices, has been charged to funds, or has been rebated.
| • | Use the List Invoices for Vendor report to create a report of taxes recorded in a vendor’s invoices. |
| • | Use the List Invoices, Lines report to create a report of taxes charged to funds. You can select tax linked invoice lines and rebate linked invoice lines, and request fund summary totals on the report’s Print Invoice tab. |
X12 Ordering and Invoice Taxes
Both the Book X12 Invoices (Bookinvoicex12) report and the Serials X12 Invoices (Serinvoicex12) report have been enhanced with tax features. The X12 Library Tax policy must be configured for these reports to load vendor-supplied tax amounts in linked invoice lines.
Setting for Tax Exempt Vendors
If the Vendor Tax Exemptions policy in the Global Configuration wizard is set to Use Vendor Tax Exemptions, vendor records will include the Tax Exempt Vendor setting to specify whether the vendor has a tax exempt status. If a vendor has a tax exempt status, materials ordered from the vendor are not subject to taxes. When an invoice is created, the Tax Exempt Vendor field on the Invoice tab inherits the value of the Tax Exempt Vendor setting in the vendor record. If the Tax Exempt Vendor setting in the invoice is Y (yes), no tax lines will be added to the invoice, and tax invoice lines cannot be added manually to the invoice with the Add Invoiceline tool or wizard.
If a vendor’s tax exemption status changes, SirsiDynix Symphony adjusts invoices as follows.
| • | If the Tax Exempt Vendor setting is changed in the vendor record, existing invoices are not affected. |
| • | If the Tax Exempt Vendor setting in the invoice is changed from Y (yes) to N (no), and the Invoice Tax feature is configured to calculate taxes and tax rebates automatically, tax and tax rebate invoice lines will be automatically added to the invoice. |
| • | If the Tax Exempt Vendor setting in the invoice is changed from N (no) to Y (yes), and the invoice contains tax and tax rebate lines, all tax and tax rebate lines are removed from the invoice. The invoice totals are recalculated, and funds originally specified in the tax and tax rebate lines are adjusted. Users are prompted to confirm the removal of the tax and tax rebate lines before the invoice is modified. |
Before You Begin Using Tax Features
Before you begin to use Invoice Tax feature, you must do the following.
| • | Contact SirsiDynix Customer Support to enable the Invoice Tax feature. The SirsiDynix Symphony server must be stopped and restarted after Customer Support changes the SirsiDynix Symphony configuration. |
| • | Create Tax, Tax Structure, and Tax Handling Map policies. Once the Invoice Tax feature is enabled, the Tax Structure field is a required field in each new invoice. Existing invoices will have the tax Structure field set to the value of NONE. |
| • | Determine whether you need the tax features of zero rated tax, tax rebates, vendor tax exemptions, and tax included in invoice line amounts. Each of these features can be enabled or disabled, as needed, in the Acquisition tab of the Global Configuration wizard. Refer to Global Configuration Wizard for information. |
| • | Review the Session Settings Wizard: Acquisitions and Selection Lists and wizard properties in the Acquisitions module to determine the best settings for your workflow. |
| • | Review the scheduled Book X12 Invoices report and the Serials X12 Invoices report to determine if you need to adjust the report options. Configure the X12 Library Tax policy so vendor-supplied tax amounts can be loaded into linked invoice lines. |
Related topics
Session Settings Wizard: Acquisitions and Selection Lists
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