How to: Calculate Service Tax for Input Service Distribution

You can calculate the service tax for input service distribution using both purchase orders and purchase invoices.

The following procedure describes how to calculate service tax for purchase orders, but the same steps also apply for purchase invoices.

To calculate service tax for input service distribution from a purchase order

In the Search box, enter Purchase Orders, and then choose the related link.
On the Home tab, choose New.

On the General FastTab, fill in the required fields as described in the following table.

Field	Description
No.	The vendor number.
Buy-from Vendor No.	The number of the vendor from whom the items are purchased.
Posting Date	The posting date for the purchase order. This field is populated when the vendor number is selected in the Buy-from Vendor No. field.
Document Date	The document date for the purchase order.
Structure	The structure defined for the service tax calculation.
Vendor Invoice No.	The vendor invoice number.

On the Lines FastTab, fill in the required fields as described in the following table.

Field	Description
Type	Specify G/L Account to indicate that the account type is general ledger account.
No.	The general ledger account number that has a service tax group code in the G/L Account Card window. For more information, see G/L Account Card Window.
Location Code	The location code for the general ledger account. You can select the location code that has the Input Service Distributor check box selected in the Location Card window. For more information, see Location Card Window.
Quantity	The number of units.
Direct Unit Cost Excl. VAT	The direct unit cost excluding the VAT. After you enter the amount in this field, the amount will be populated in the Line AmountExcl. VAT field.

On the Invoicing FastTab, in the Payment Method Code, select Cash.
On the Shipping FastTab, in the Location Code field, select the location for the vendor.
On the Tax Information FastTab, select the Input Service Distribution check box.
To calculate the service tax structure values, on the Actions tab, in the Functions group, choose Calculate Structure Values.
On the Navigate tab, in the Order group, choose Statistics. For more information, see Purchase Order Statistics Window.
Choose the OK button.
On the Actions tab, in the Posting group, choose Post.
In the dialog box, select one of the following options:
- Receive
- Invoice
- Receive and Invoice
Choose the OK button.