This page explains how to use the Tax Mapping feature
- General information
- Enabling the feature
- Preparing accounts for service/goods determination
- Creating tax mapping records
- Create a fallback tax mapping record
The Tax Mapping feature is only relevant if "Use Tax Mapping" is checked in Scan & Capture Setup > Incoming E-Documents > Accounting. By default, this feature is not enabled and NetSuite’s default tax logic is used.
Tax mapping is a way to configure the tax codes that S&C should use when creating vendor bills and credits. Simplified, it maps a tax percentage (that may be captured on the PDF or is part of an e-invoice) to a tax code in NetSuite. Next to the tax percentage, also other factors are used to map the tax code, such as whether it’s goods or services and reverse charge.
Customers are advised to use this feature if NetSuite’s native tax solution is not accurate enough (specifically: when users have to change tax codes too often).
The tax mapping logic is triggered for each vendor bill line individually. It is triggered on the Bill to Process record. Therefore, if changes are made to the tax mapping record, a Bill to Process record must be edited and saved before those changes have an effect on that Bill to Process record.
Enabling the feature
To enable this feature in the generic setup of Scan & Capture SuiteApp: Go to Setup > Scan & Capture Setup > Scan & Capture Main Configuration / Tax section / and enable preference "Use Tax Mapping"
To enable this feature for certain subsidiaries: Go to Setup > Scan & Capture Setup > Scan & Capture Subsidiary Setup / Tax Settings section / and enable preference "Use Tax Mapping"
When the feature is enabled, you must create tax mapping records for all subsidiaries, and/or creating a fallback mapping record. If not, the tax code will be empty on the vendor bill.
Preparing accounts for service/goods determination
For countries that require different tax codes for goods and services purchases, we need to identify if the purchase or good is a service.
- If items are used when defaulting vendor bill lines, then the item type (Service) is used to determine whether it is a good or service.
- When accounts are used to default vendor bill lines, check the checkbox ‘Service - for taxation’ on the CoA account record for relevant accounts. For example, you may select this checkbox for the account ‘IT Consulting’.
Creating tax mapping records
- Go to Setup > Scan & Capture Setup > Scan & Capture Tax Mapping
- Click New
- Select the subsidiary
- Select the tax type (GST or VAT). Currently, this is for information only.
- Enter the percentage you wish to map. The percentage on the incoming document is compared with this percentage.
- Select whether this mapping relates to services or goods. Leave blank if not applicable. Goods or services are determined by item type ‘Service' (when items are used to default vendor bill lines) or the checkbox 'Service - for Taxation’ on the account record (when accounts are used to default vendor bill lines.
- Check ‘Reverse Charge’ if this mapping relates to an EU purchase tax code.
- Select the tax code that should be selected on the vendor bill line.
If a field is not applicable, leave it blank.
Create a fallback tax mapping record
Create a tax mapping record as above, but leave the tax percentage empty. The tax code selected on this record will be seen as the fallback tax code.