Auto Create and Balance Tax Lines System Default

Eclipse will now automatically create and calculate tax lines when entering in Invoices or Petty Cash, saving you the time of creating and calculating the tax lines manually. We strongly suggest that you never disable this option unless advised to by TPH Support staff.

System Default Setup

1. You will need to go into Control Table > System Defaults > Tax Balance then:

• tick the Auto Create and Balance all Tax Lines checkbox

• tick Balance Tax Before Posting checkbox.

• Ensure that Create 2 Tax Lines is turned off as this is a more rudimentary version of tax balancing that only creates a 0 value Tax Line for Net amounts for Invoices. This option is not compatible and will cause issues with the auto create/balance all tax lines option.

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Tax Flag Setup / Tax Line Creation

2. You then need to go into each of your tax flags Control Table > Currencies and select the tax code that you want to apply for your tax code and non-tax code for each Currency you are using.

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3. You will then need to ensure that your tax codes have been assigned to an account. Go to Control Table > Indirect Tax Codes. See: Indirect Tax Codes

4. Tick Create Distribution Line and then assigning an account code to your desired tax flags.

5. If you do not want the system to create a tax line for your desired tax flag, then ensure that Create Distribution Line is unticked, then Eclipse will not automatically create a tax line.

6. With these system defaults enabled, the system will now automatically create and calculate tax lines. See below for an example in Invoices and Petty Cash.

Examples

Invoices

As we enter in the cost lines, the tax lines will now be automatically generated and updated after each line entry. The Petty Cash module works differently and only updates and creates these tax lines after pressing OK.

In this example, we have the following cost lines below.

We insert one line of $100 for a G Tax Flag of 10%

• After entering in this line, the system automatically generates a tax line for $10 for the G Tax Flag at 10%

We now enter an additional two lines of $50 each for a H Tax Flag of 5.5%

• The system automatically creates one tax line for $5.50 for the H Tax Flag at 5.5%

Finally, we enter in one line of $100 for a N (No Tax) Flag of 0%

• The system automatically creates one tax line for $0 for the N Tax Flag at 0%. This is so the NET value of $100 is picked up in your VAT report.

Petty Cash

In this example, we have created two cost lines for $500 each.

• One line of $500 for a G Tax Flag at 10%

• One line of $500 for a H Tax Flag at 5.5%

After pressing OK, a message will popup to tell you that a tax line has been created for a tax flag. The amounts will be automatically calculated by the system to balance the tax.

The Invoice module does not require you to click OK, and the tax lines will be generated and updated as you are entering in data.

If you go back into the Petty Cash entry transaction, you can see that the system has created two tax lines for H and G tax flags that are pointing to the tax accounts.

• One tax line for $45.45 for the G Tax Flag at 10%

• One tax line for $26.07 for the H Tax Flag at 5.5%