Sage 300: Add new account called Tax Paid in Tax Authorities for use in Payments-AP and Receipts-AR to cancel the Tax Recoverable in AP and Tax Libiality account in AR at the payment moment to generate a jornal entry. This is a local requirement in Mexico and other Latinamerican Contries.

For fiscal requirement in Latam Contries must be cancelled the tax recoverable at the moment of the payment and is a requirement see a journal entry whit this reverse entry for example:
1.- Invoice entry, DB:Inventory account (100), DB:Tax Recoverable (16) CR:Account Payable account (116)
2.- Payment entry, DR:Account Payable Account (116), DR:Tax Paid (16), CR:Tax Recoverable (16), CR:Banks (116)

The same philosophy apply to Account Receivables by each Tax Authority you decide to apply, but cancel the Tax Liability account.
The calculation of the amount tax paid must be taked from the original document (invoice) tax rate not from Vendor because can be different.

Regards and I hope can be this in the near future, I hope

by: Fernando R. | over a year ago | Setup / Environment

1

Add new account called Tax Paid in Tax Authorities for use in Payments-AP and Receipts-AR to cancel the Tax Recoverable in AP and Tax Libiality account in AR at the payment moment to generate a jornal entry. This is a local requirement in Mexico and other Latinamerican Contries.

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