| Tax Type |  |
| Normal The tax obligation arises at invoice creation. ERP LN adds the tax amount to the net amount, which results in the gross amount on invoices. Furthermore, ERP LN directly includes the chargeable or payable tax amount in the tax analysis in Financials. Shifted ERP LN does not add the tax amount to the net amount, but posts it to the Purchase Tax account or the Sales Tax account. Simultaneously, ERP LN generates a reverse entry on the Shifted Purchase Tax account or the Shifted Sales Tax contra-account in Financials. You define these accounts in the tax code posting data sessions. In the tax analysis, the tax amount is included twice: once as an entry on the tax account, and once as a reverse entry on the shifted tax account. On Payments The tax obligation arises when the invoice is paid. This tax is paid in the same way as normal tax, but only becomes reclaimable or payable after the invoice has been paid. The tax is posted to an interim account and will only be transferred to the real tax account when the invoice is paid. If this type of tax is used in another type of transaction, the tax amount is directly posted to the tax account. |