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How to: Calculate Service Tax Using General Journals

After you post service tax transactions, service tax entries are computed automatically in the related general ledger accounts, as defined in the Service Tax setup. For more information, see How to: Set Up Service Tax and Set Up the Chart of Accounts.

You can calculate service tax using general journals. The service tax group code and the service tax registration number are mandatory when you create invoices using general journal lines. For more information, see Creating Service Invoices Manually.

To calculate and post service tax in general journal lines

  1. In the Search box, enter General Journals, and then choose the related link.

  2. Fill in the required fields as described in the following table.

    Field Description

    Batch Name

    The general journal batch name.

    Posting Date

    The posting date for the general journal entry.

    Document Type

    Select Invoice for the document type.

    Account Type

    The account type to which the journal line will be posted.

    Amount

    The total amount of the journal line including VAT.

    Bal. Account Type

    Select G/L Account to specify that the balancing account type is general ledger account. Choose an account that is already mapped to a service tax group to automatically calculate service tax on the invoice.

    Service Tax Group Code

    The service tax group code.

    Service Tax Registration No.

    The service tax registration number.

  3. On the Actions tab, in the Posting group, choose Post.

    After you post the journal entries, the service tax is calculated on the invoice.

  4. Choose the OK button.

See Also

Tasks

How to: Set Up Service Tax
How to: Calculate Service Tax Using Cash Payment Vouchers

Concepts

Service Tax Overview

Other Resources

General Journal Window
Gen. Journal Line Table
Set Up the Chart of Accounts
Creating Service Invoices Manually