By default the NetSuite Legacy Tax Adapter for GTD supports forward calculation for tax determination. As of version 1.1.0, you have the option to turn on back calculation (Type 5).
For more information on forward and back calculation, read this article.
Turning on back calculation
To be able to back calculate taxes, you first have to activate the tax override feature in the Sovos Configuration Record.
To do this, follow these steps:
- Go to Sovos Legacy > Legacy Tax > Configuration.
- In the Sovos Configuration row, click Edit.
- Select Activate Override Tax Details.
- Click Save.
Using back calculation
After you activate tax override, two new fields will be added to line items: Tax Amount and Tax Basis. Tax Basis is the taxable amount for the item, which is the gross amount minus the exempt amount.
These fields are required for back calculation. If you leave both fields empty, the adapter will default to a standard forward calculation.
To make sure everything is correct, click Calculate Tax and make sure the tax amount in the Summary box matches the value you entered in the Tax Amount field.