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Tax Calculation for Accounts Payable

In This Article…

Introduction

Automated tax calculation is a handy tool firms can use to automatically calculate the tax paid by the firm. 

This tool is for those firms who have firm paid tax enabled in CosmoLex, under Setup > Firm Settings > Accounting > Firm Paid Tax

How it Works

When entering Accounts Payable bills, and general/credit withdrawal transactions, CosmoLex provides the option to enter the full amount of the transaction and have the system calculate the tax portion.  

For any payment/withdrawal transaction from an operating or credit bank, there is a ‘Calc’ checkbox next to the amount field. By default, this is unchecked. When checked, the ‘total paid’ field becomes typable. When that amount is entered, CosmoLex will automatically calculate the tax amount based on default tax rates configured in the financial settings area.

When ‘Calc’ is unchecked

The total paid field is read-only. This amount simply adds the amount + tax which was entered. No auto-calculation or correction takes place.

When ‘Calc’ is checked

The total paid field is writable, but the tax amount fields are read-only. User can enter the total paid amount and the system will calculate the amount and tax based on the system settings.

Updated on January 23, 2020

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