Entering Expense Reports with Tax Impact in NetSuite

Entering an expense report in NetSuite allows users to record expenditures and manage expense-related information effectively. With the SuiteTax feature enabled, users can now specify taxes directly on their expense reports, which significantly aids in accurate financial reporting and compliance.

Tax Fields Added to Expense Reports with SuiteTax

When SuiteTax is activated, additional tax-related fields are incorporated into the expense report interface:

• Summary Box:

  • Tax Total: Displays the total tax amount.
  • Total Tax by Tax Type: Breaks down the tax amounts by type.

• Expenses Subtab:

  • Tax Amount: Shows the tax charged for each line item.
  • Gross Amount: Total amount including tax.
  • Tax Details Reference: Links to tax details for each line.

• Tax Details Subtab:

  • Nexus: Indicates the tax authority.
  • Subsidiary Tax Reg. Number: Lists the subsidiary’s tax registration number.

  The Taxes Subtab includes:

  • Tax Details Reference
  • Name
  • Net Amount
  • Gross Amount
  • Tax Type
  • Tax Code
  • Tax Basis
  • Tax Rate
  • Tax Amount
  • Details

Important Considerations for Tax Reporting

• Permissions: Users need at least the Edit level of the Tax Details Tab permission to input taxes on an expense report. Note that the Employee Center role does not have this permission, restricting tax detail entry.
• Manual Entry: The nexus and tax registration fields need to be manually filled out, as the system does not auto-populate this information based on nexus lookup logic.
• Non-reimbursable Expenses: Lines marked as non-reimbursable are not subject to taxation.

Tax Reporting Impact

Once an expense report is saved with tax information, the data is transmitted to the tax engine for reporting purposes. Ensure that your tax engine implementation includes expense reports to capture all relevant data appropriately.

Step-by-Step: Entering an Expense Report with Tax Impact

1. Navigate to Transactions > Employees > Enter Expense Reports.
2. Choose an appropriate form for your report.
3. Fill out the Primary Information section:
   • Exp. Rept #: Automatically generated upon saving.
   • Employee: Select the relevant employee.
   • Advance To Apply: Specify any advance payments.
   • Purpose: State the reason for the expenses.
   • Date: Defaults to today's date but can be adjusted.
   • Posting Period: Determined by the date entered; may change until approval is given.
   • Date Due: Optionally enter a due date.
   • Complete: Check if the report is finalized.
4. If using multiple currencies, check Use Multi Currency on the Expenses subtab to include foreign amount fields.
5. On the Expenses subtab, input line items for each expense:
   • Ref No.: Automatically populates sequentially.
   • Date: Enter when the expense occurred.
   • Category: Choose the category for each expense.
   • Quantity and Rate: Required for certain categories.
   • Foreign Amount & Currency: For expenses incurred in foreign currency.
   • Memo, Department, Class, Location: Optional fields.
   • Customer: If applicable, and check Billable.
   • Attach File: To upload receipts.
6. Lastly, input tax information on the Tax Details subtab if you have the necessary permissions:
   1. Nexus: Select relevant nexus.
   2. Tax Reg. Number: Auto-fills based on selected nexus.
   3. Enter the tax details for each taxable line on the Taxes subtab:
   • Tax Details Reference, Tax Type, Tax Code, etc.
7. Click Save when all data is entered.

Upon saving, the tax details are stored for reporting to the designated tax engine, ensuring compliance and accuracy in financial management.