Entering Expense Reports with Tax Impact in NetSuite 2026.1

Starting in NetSuite 2026.1, the introduction of SuiteTax allows users to specify tax information on expense reports, providing a more comprehensive tool for tracking expenditures and their tax implications.

What’s New

When the SuiteTax feature is enabled, several tax-related fields are added to the expense report interface. This enhancement aims to improve the efficiency of expense reporting and ensure compliance with tax regulations.

Tax Fields Added to Expense Reports

Below are the new tax-related fields included on the expense reports:

Summary Box

• Tax Total: Displays the total tax amount calculated for the report.
• Total tax by tax type: Overview of tax amounts categorized by type.

Expenses Subtab

Fields available for each expense line include:

• Tax Amount: Amount of tax applied to each line item.
• Gross Amount: Total amount including tax.
• Tax Details Reference: Links tax details to specific expense items.

Tax Details Subtab

Provides the following information:

• Nexus: Location-specific tax information.
• Subsidiary Tax Reg. Number: Displays tax registration numbers relevant to the subsidiary.

Taxes Subtab

Details provided include:

• Tax Details Reference: Links specific tax lines to expense lines.
• Name: Describes the category of the tax.
• Net Amount: The amount before tax is applied.
• Gross Amount: Total amount with tax included.
• Tax Type: Specifies the type of tax applicable.
• Tax Code: Represents the code associated with the tax type.
• Tax Basis: Defines the basis on which the tax is calculated.
• Tax Rate: The rate applied to the base amount.
• Tax Amount: Displays the calculated amount of tax.
• Details: Additional notes regarding the tax line.

Important Considerations

When utilizing these tax features, it is crucial to take note of the following:

• Permissions: You must have at least the Edit level permission for the Tax Details Tab. Users in the Employee Center cannot enter tax details due to permission limitations.
• Manual Entries: Users are responsible for entering nexus and tax registration numbers since these are not automatically populated. If no tax data is provided, the expense report will be treated as non-taxable.
• Non-Reimbursable Items: Items classified as non-reimbursable will not incur tax.
• Tax Reporting: The tax data submitted becomes part of the overall tax reporting, so accuracy in entering this information is essential for compliance.

How to Enter an Expense Report with Tax Impact

1. Navigate to Transactions > Employees > Enter Expense Reports.
2. Select an appropriate form for the expense report.
3. Fill in the details in the Primary Information section, including employee name and advance amounts.
4. On the Expenses subtab, input each expense line, including dates, category, and amounts.
5. Enter tax information on the Tax Details subtab, linking taxes to each expense line as necessary.
6. Save the report to send tax details to the tax engine for compliance and reporting.

Who This Affects

• Administrators: Responsible for configuring permissions and overseeing tax compliance.
• Employees: Users entering expense reports and tax information.
• Accountants: Professionals reviewing reports for accuracy and compliance.

Key Takeaways

• SuiteTax enhances expense reporting by integrating detailed tax information.
• Tax details must be manually entered where automated options are not available.
• Non-reimbursable expenses are excluded from tax calculations.
• Accurate entry of tax information is vital for compliance reporting.
• The SuiteTax feature is available starting from NetSuite 2026.1.