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Questions
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Resolutions
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How should we use the tax
fields for tax rates that are not set up on the NCAS?
(added 2/5/99) |
The reason we put tax in
the tax fields is so that it can be prorated up to each of the individual
lines on the invoice. Sales tax reporting is done on the individual
lines of the invoice and not on the total amounts in the tax field.
This is why it is important to have the correct sales tax rate on each
line. Currently we need to track and report on NC State taxes that
include the 2% county tax. There are also a few agencies that must
report on the 1% and 3% rates. At this point in time, the rates are
set in most pay entities as follows:
|
Use Tax Code
|
Authority Name
|
1
|
2
|
3
|
4
|
| 000 |
NC Dept. of Revenue |
.000
|
.000
|
.000
|
.000
|
| 100 |
NC Dept. of Revenue |
1.000
|
1.000
|
.000
|
.000
|
| 200 |
NC Dept. of Revenue |
2.000
|
.000
|
2.000
|
.000
|
| 300 |
NC Dept. of Revenue |
3.000
|
3.000
|
.000
|
.000
|
| 400 |
NC Dept. of Revenue |
4.000
|
2.000
|
2.000
|
.000
|
| 500 |
NC Dept. of Revenue |
5.000
|
3.000
|
2.000
|
.000
|
| 600 |
NC Dept. of Revenue |
6.000
|
4.000
|
2.000
|
.000
|
| 700 |
NC Dept. of Revenue |
7.000
|
4.000
|
2.000
|
1.000
|
-
Column 1 shows the total tax
|
-
Column 2 is the state tax
|
-
Column 3 represents the county
tax
|
|
The rates that have a 2
in column 3 (county tax) are the rates that are being pulled over for reporting
on the sales tax by county reports. The other rates 1% and 3% go
to the "Other Sales tax report". Rates for out of state taxes, airline
taxes and other rates that do not need to be reported to the NC Department
of Revenue should not be reported in the tax fields but instead be included
in the total amount on the line of the invoice. The tax fields should
be left blank. If there is a need to report on a particular type
of tax that is currently not set up in NCAS, OSC Help Desk will need to
be notified. The rate set up must not have a 2.000 in column 3 or
it will be extracted for NC county tax reporting. At this point in
time, we are not aware of other tax rates that are being used and are reportable
to the state of NC.
|
| What do I do when I get
a U10 error message saying that there is a rounding problem with my sales
tax? |
The U10 error message comes
up when there is sales tax on an invoice, but the last line is not taxable.
When entering the invoice lines, just make sure the last line you enter
is a taxable line. That may mean switching the order and not entering
them in the same order as they appear on the invoice from the vendor. |
| What do I do when an out-of-state
vendor does not charge NC sales tax on an invoice? |
You will need to calculate
the NC sales tax amount and enter that amount in the Sales tax/VAT field
at the bottom of the invoice. Then, add a line to the invoice for
the negative amount of the sales tax and charge it to the sales tax liability
account (211940). Make sure that the tax prorate flag is set to 'N'
for the negative line, and make sure that at least one of the positive
lines on the invoice has the tax prorate flag set to 'Y'. |
| The sales tax for the invoice
was posted to the suspense account. How do I fix this? |
This happened because the
AP clerk entered sales tax on the invoice, but all of the invoice lines
had the tax prorate flag set to 'N'. A journal entry must be made
to clear the sales tax from suspense. The sales tax will be charged
to the expenditure account(s). If there is more than one line on
the invoice that should have had tax prorated, then you must manually calculate
the amounts to be posted to each line. |
| We have withheld 4% state
withholding in error and the vendor wants his money back but they have
already cashed the check we sent them. What do I do? |
When payments are withheld
erroneously from a vendor, a zero dollar invoice needs to be recorded in
the Accounts Payable module of NCAS. The invoice should contain a
positive line to post the expenditure without the 1099 code and a negative
line to back out the original expenditure entry containing the appropriate
1099 code. The system will then reverse the entry in the state withholding
account. As a result, the system will produce a check for the amount
of the the withholding. The zero dollar invoice should include the
agency's BAP code, not the ZRO BAP code. If the ZRO BAP code is used,
no check will be produced. See more detail and examples in the SIG. |
| Our agency has discovered
an out-of-state vendor not eligible for the withholding of 4% state tax.
The check has been written. Would the check be canceled while the
tax information is on the VPN and VDD screen? |
The check should be canceled
first and then the information can be removed from the VPN and VDD screens. |
| I have a vendor in the PT
file who is set up for 4% wihholding but the vendor is not subject to the
tax. What should I do concerning my codes (M6 or M7 for example)? |
When the vendor is going
to be paid, do not put the M6 or M7 code on IWS. After the check
clears, go back and install the appropriate codes so the vendor will receive
the 1099. |
| How should we use the tax
fields for tax rates that are not set up on the NCAS? |
The reason we put tax in
the tax fields is so that it can be prorated up to each of the individual
lines on the invoice. Sales tax reporting is done on the individual lines
of the invoice and not on the total amounts in the tax field. This is why
it is important to have the correct sales tax rate on each line. Currently
we need to track and report on NC State taxes that include the 2% county
tax. There are also a few agencies that must report on the 1% and 3% rates.
At this point in time the rates are set in most pay entities as follows:
| Use Tax Code |
Authority Name |
1 |
2 |
3 |
4 |
| 000 |
N.C. Department of Revenue |
.000 |
.000 |
.000 |
.000 |
| 100 |
N.C. Department of Revenue |
1.000 |
1.000 |
.000 |
.000 |
| 200 |
N.C. Department of Revenue |
2.000 |
.000 |
2.000 |
.000 |
| 300 |
N.C. Department of Revenue |
3.000 |
3.000 |
.000 |
.000 |
| 400 |
N.C. Department of Revenue |
4.000 |
2.000 |
2.000 |
.000 |
| 500 |
N.C. Department of Revenue |
5.000 |
3.000 |
2.000 |
.000 |
| 600 |
N.C. Department of Revenue |
6.000 |
4.000 |
2.000 |
.000 |
| 700 |
N.C. Department of Revenue |
7.000 |
4.000 |
2.000 |
1.000 |
Column 1 shows the total tax,
column 2 is the state tax, column 3 represents the county tax and column
4 is other tax. The rates that have a 2 in column 3 (county tax) are the
rates that are being pulled over for reporting on the sales tax by county
reports. The other rates 1% and 3% go to the "Other Sales tax report" .
Rates for out of state taxes, airline taxes and other rates that do not
need to be reported to the NC Department of Revenue should not be reported
in the tax fields but instead be included in the total amount on the line
of the invoice. The tax fields should be left blank.
If their is a need to report
on a particular type of tax that is currently not set up in NCAS, OSC help
desk will need to be notified. The rate set up must not have a 2.00 in
column 3 or it will be extracted for NC county tax reporting. At this point
in time we are not aware of other tax rates that are being used and are
reportable to the the state of NC. |
