Tax control accounts are accounts in your general ledger or chart of accounts where indirect tax amounts, like sales tax or VAT amounts, are posted. If you turned on Advanced Taxes, tax control accounts are linked to a nexus or country in order to manage tax postings. You can view the tax liability for each tax control account on your balance sheet and other financial reports.
While NetSuite comes with default tax control accounts, you can use multiple tax control accounts to track your sales tax liability and provide more detail on your financial statements. For example, U.S. customers can create a tax control account for each taxing jurisdiction and assign the accounts to their respective tax codes.
To create a tax control account, follow these steps:
- Go to Setup > Accounting > Tax Control Accounts > New.
- Select a nexus.
- Enter the name of the tax control account. You can also add a description.
- Click Save.