ATTENTION ACCOUNTS PAYABLE (10/17/02)
Starting Monday,
Oct. 21st there will be two system policy changes within the NCAS
that will affect Accounts Payable processing.
| 1. | NCAS currently calculates tax only on the expense lines. After the NCAS system policy change the tax will be calculated on both the expense line and the freight field. Freight field amounts will automatically have tax calculated on them. All freight paid should be taxed. |
| 2. | The second policy change affects the way tax is calculated on discounts. Presently the system is set up to calculate tax on the gross invoice amount, that is the amount before any cash discount is applied. The law has been changed so tax should be calculated on the discounted invoice price. The NCAS policy is being changed to reflect this. The tax on any invoice that has a discount must be calculated based on the invoice amount less any discount. The amount in the tax field must be manually calculated based on the discounted sales price. The NCAS will display an error message until the amount entered in the tax field is correct based on the discounted price. |