<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000058" xml:lang="en">
   <Header>
      <Title>Expense purchase tax</Title>
      <Keyword type="header" order="d1e1432446">
         <Level1>Expense</Level1>
         <Level2>purchase tax</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1432451">
         <Level1>Purchase tax</Level1>
         <Level2>expense</Level2>
      </Keyword>
   </Header>
   <GeneralSection ID="A">
      <SectionTitle>Expense purchase tax</SectionTitle>
      <Paragraph>If an expense purchase
		tax code applies to a purchase invoice, the tax amounts on the invoice are
		considered as costs. ERP Enterprise posts the tax amount to the same account and dimensions to which the purchase
		receipt transaction is posted.</Paragraph>
      <Paragraph>Expense purchase tax is not restricted to the sales tax
		functionality. That means that you can set up expense purchase tax codes
		independently of the selection of the <GUIRef href="/baanerp/tc/com/tccom0000s000#tccom999.dstx" role="manual">Destination Sales Tax Applicable</GUIRef> check box in the <GUIRef href="/baanerp/tc/com/tccom0000s000" role="session">COM Parameters (tccom0000s000)</GUIRef> session. In Europe, expense purchase tax only applies
		to cost invoices.</Paragraph>
      <List>
         <ListIntro>Posting expense purchase tax is performed during these
		  processes:</ListIntro>
         <ListItem>Manual invoice approval in the <GUIRef href="/baanerp/tf/acp/tfacp2107m000" role="session">Match/Approve Purchase Invoices (tfacp2107m000)</GUIRef> session.</ListItem>
         <ListItem>Self billing and generation of internal invoices in the <GUIRef href="/baanerp/tf/acp/tfacp2290m000" role="session">Generate Self-Billing Purchase Invoices (tfacp2290m000)</GUIRef> session.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection ID="B">
      <SectionTitle>North American expense purchase tax</SectionTitle>
      <Paragraph>In North America, specific rules apply to the posting of tax on
		purchase invoices.</Paragraph>
      <ProcedureList>
         <ListIntro>To set up expense purchase tax handling:</ListIntro>
         <ListItem>In the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000" role="session">Tax Codes by Country (tcmcs0136s000)</GUIRef> session, select the <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.extx" role="manual">Expense Purchase Tax</GUIRef> check box.</ListItem>
         <ListItem>In the <GUIRef href="/baanerp/tf/acp/tfacp0100m000" role="session">ACP Parameters (tfacp0100m000)</GUIRef> session, select the <GUIRef href="/baanerp/tf/acp/tfacp0100m000#tfacp000.naet" role="manual">North American Purchase Expense Tax</GUIRef> check box and
		  select a tax variance account and dimensions.</ListItem>
      </ProcedureList>
      <ProcedureList>
         <ListIntro>If you set up North American expense purchase tax handling,
		  purchase invoices with an expense purchase tax code are handled as follows:</ListIntro>
         <ListItem>The expense tax code of the invoice is replaced with the
		  expense tax code of the order.</ListItem>
         <ListItem>During approval of the purchase invoice, the tax amount of the
		  invoice is reversed and posted in the approval document.</ListItem>
         <ListItem>The tax of each matched order line is handled and posted in the
		  approval document.</ListItem>
         <ListItem>
            <Paragraph>Any difference between the total tax amount on the invoice,
			 which was reversed, and the sum of the tax amounts on the matched order lines
			 is posted to the <GUIRef href="/baanerp/tf/acp/tfacp0100m000#tfacp000.vacc" role="manual">Tax Variance Account</GUIRef> that you select in the <GUIRef href="/baanerp/tf/acp/tfacp0100m000" role="session">ACP Parameters (tfacp0100m000)</GUIRef> session.</Paragraph>
            <Paragraph>The tax variance account is an interim account that is
			 reversed if you process the inventory variances in <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef>.</Paragraph>
         </ListItem>
      </ProcedureList>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000075" role="manual">Overview of tax handling</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000033" role="manual">To use tax codes</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000105" role="manual">Sales tax</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>