Taxes
Transaction allocations for VAT and GST in Accounts Payable—Early Adopter
Accurately distribute Accounts Payable (AP) AP purchase invoice amounts across dimensions when your entity uses a VAT or GST tax solution. You can apply a percentage-based transaction allocation directly to an AP purchase invoice line, reducing manual work while maintaining the appropriate tax calculation and allocation details for reporting and audit purposes.
Key benefits
Less manual work: Allocate costs across dimensions directly from an AP AP purchase invoice instead of using manual processes outside the tax calculation workflow.
More consistent cost distribution: Apply a predefined, percentage-based allocation to split AP purchase invoice amounts across locations, departments, and other dimensions within an entity.
Improved reporting and traceability: Retain the allocation definition, dimensional split, and resulting tax information with the AP AP purchase invoice transaction.
How it works
Enable transaction allocation in General Ledger and Accounts Payable, then create transaction allocation definitions in General Ledger.
When you create an AP AP purchase invoice for a VAT- or GST-enabled entity, select a percentage-based transaction allocation for the applicable AP purchase invoice line. The allocation distributes the line amount across dimensions using the percentages that you defined. Sage Intacct calculates the tax for the allocated amounts and records the allocation details with the transaction for reporting and audit purposes. In the More details view of the AP purchase invoice, you can see the line amount distributed among the dimensions. Detailed allocated tax lines are available after the transaction is posted.
Good to know
Transaction allocations for VAT and GST are only supported at the entity level for percentage-based allocations. Cross-entity allocations, custom allocations, absolute-value allocations, and fixed-amount allocations with over/under logic are not supported.
Allocations are also unavailable for adjustment transactions, recurring transactions, and manual payments. They cannot be changed while a AP purchase invoice is in partial edit or reclassification mode.
Join the Early Adopter program
We invite you to explore this feature as part of the Early Adopter program. Your feedback helps us improve the experience before broader release.
As part of the program, you'll work closely with the product team and provide feedback about your experience using the feature.
Sign up for Early Adopter access here.
Permissions and other requirements
| Subscription | Accounts Payable Taxes |
|---|---|
| Regional availability | All regions |
| User type | Business |
| Permissions | Administration Application subscriptions: List, View, Configure General Ledger Transaction allocations: List, View, Add, Edit, Delete Accounts Payable AP purchase invoices: List, View, Add, Edit, Delete |
| Configuration | You must enable allocations in General Ledger before you can enable allocations in Accounts Payable. |
| Restrictions | You must create allocations at the entity level for use on an entity-level AP AP purchase invoice. You must use a percentage-based transaction allocation for VAT or GST transactions. |
