Entering Expense Reports with Tax Impact in NetSuite

Step-by-Step Guide to Entering an Expense Report with Tax Impact

1. Navigate to: Transactions > Employees > Enter Expense Reports.
2. Select a form suitable for the expense report.
3. Fill in the Primary Information section:
   • Exp. Rept #: Automatically generated after saving.
   • Employee: Select the name of the employee who incurred the expenses.
   • Advance To Apply: Specify any advances applicable to reimbursements.
   • Purpose: Describe the reason for the expenses.
   • Date: Set the current date or modify it as needed.
   • Posting Period: Reflects the date specified in the Date field and can change until approved.
   • Date Due: Optionally enter the expense report due date.
   • Complete: Check if the report is ready for approval; uncheck if changes are needed.
   • Approvals: Check corresponding approval boxes if authorized.
4. If Multiple Currencies are enabled, check Use Multi Currency on the Expenses subtab to display currency fields.
5. On the Expenses subtab, add expense line items:
   • Ref No.: Automatically numbered starting from 1.
   • Date: Input the actual date of expense.
   • Category: Choose an appropriate expense category.
   • Quantity & Rate: Enter these values as required by the selected category.
   • Foreign Amount, Currency & Exchange Rate: Fill these if expenses incur in foreign currency.
   • Amount: The net amount of the expense.
   • Additional fields such as Memo, Department, and Non-reimbursable options can be specified.
   • Tax Amount & Gross Amount: These will auto-populate upon entering tax info on the Tax Details subtab.
   • Attach relevant receipts if necessary.
6. On the Tax Details subtab, enter the required tax information:
   • Nexus: Select the applicable nexus for the expense report.
   • Tax registration numbers get auto-populated based on your nexus selections.
   • Fill in all tax detail fields for each taxable expense line, linking them to corresponding expenses using the Tax Details Reference field.
7. Click Save once all entries are complete

Once saved, the tax details are forwarded to the tax engine for reporting. Ensure that your tax engine effectively includes expense reports in its calculations.

Who This Affects

• Administrators: Need to manage and configure tax-related permissions for expense reporting.
• Employees: Authorized to enter expense reports and tax details depending on their permissions.
• Accountants: Responsible for verifying and reporting tax details associated with expense reports.

Key Takeaways

• SuiteTax enables tax specification on expense reports, enhancing accuracy in tax reporting.
• Users need proper permissions to input tax details; permissions vary across roles.
• Manual entry of tax details is necessary, as the system does not auto-populate these fields.

Source: This article is based on Oracle's official NetSuite documentation.