This feature is relevant to customers who are looking to auto-calculate and pre-populate tax rates based on the state/province in which the expense occurred and the type of expense (For example, Canadian customers who have GST/PST/HST/Other requirements). This feature eliminates the need to calculate and enter the taxes in the respective tax field when the user is entering the corresponding expense in Gorilla Expense. The taxes will be auto calculated and populated in the respective tax fields on the expense line. 

Based on the Client's requirement we can send these pre-tax & tax amounts to your ERP System on Purchase Invoice/GL Entry Lines. If required, we can populate Tax Area code and Tax Group code fields (if you are using Business Central) as well.

How to maintain the Tax Rate and associated GL Code in the Gorilla Application? (Option1)

Gorilla Expense gives the users flexibility to define the tax rates for the combination of province/state and expense type. This can be done in the Tax Rate Master. The tax rates can either be tied to a corresponding GL code (Option 1 elaborated in this section) or Tax Area Code and Group Code (Option 2 elaborated in the next section) defined in Business Central (or your ERP system). This option here explores how you can maintain tax rates and associate them with corresponding GL codes as defined in your ERP system.

Maintain New Tax Rate

Click on a "Masters" tab --> select the "Tax Rate" as shown below

To create a new tax rate, click on the "Create New" button as shown below.

Fields in bold are required.

The Admin User needs to maintain the Tax Rate associated with the Expense Type and State, in the Gorilla Application. For e.g., as per the below screenshot, we have selected the expense type as “Web Site and IT Expenses - IT Expenses”. For the state of “British Columbia (BC)” 5% GST and 7% PST are, applicable so 0.05 GST Rate and 0.07 PST Rate are maintained in the Gorilla Expense, also the GST GL Code and PST GL Code for those accounts are setup.

The newly created tax rate will be displayed on the tax rate list.

Create Expense (Example)

Now if the end user selects the above combination of expense type and province, the tax amounts are auto calculated for the user. For example, the following screenshot shows the auto calculation and auto-population of tax data for the state “British Columbia (BC)” and expense type “Web Site and IT Expenses - IT Expenses”. The tax amounts are displayed in the respective fields (GST/PST) for reference of the user.

Integration Example with Business Central (GL Code)

During the integration, the tax amounts will be entered on separate line(s) in Business Central (in addition to the pre-tax expense amount line), these line(s) will get assigned the GL account specified on the Tax Rate Master page. In the below example, the pre-tax expense amount of $100 for which the GST was $5 and PST was $7. Hence, you see 3 lines in Business Central (totaling $112) with the corresponding GL codes.

Purchase Invoice Integration

In case you send expense reports as Purchase Invoices, we will assign the appropriate GL code associated with the respective tax (GL code 63200 for GST and GL code 61200 for PST) on the Purchase Invoice Lines based on the configuration done in the above section.

General Journal (Tax Integration with GL Code)

Similarly, you will see 3 lines on the General Journal batch, in case you decide to integrate with GL screen

How to maintain the Tax Area Code and Tax Group Code in the Gorilla Application (Option 2)

Tax area codes is a grouping of sales tax jurisdictions based on a particular geographic location maintained in BC. If you have Tax Area Codes & Group Codes setup in BC and want to take advantage of this setup to manage taxes, Gorilla Expense can be configured to send these values with the expenses during integration with BC

Maintain Tax Rates

This section illustrates how you can maintain tax area codes and group codes within Gorilla Expense and associate them with the Tax Rate master.

Maintain Tax Area Code

The admin needs to maintain the Tax Area Code on the tax rate master, in the field called “Tax Area Code”. If the Tax area codes are maintained, then the integration will ignore any values maintained in the GL code fields. 

Maintain Tax Group Code

Click on a "Masters" tab --> select the "State" as shown below

In the below reference screenshot, we have used the pipe operator to separate the “State Code” and “Tax Group Code” in which the second segment after the pipe operator i.e., “TAXABLE” is Tax Group.

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Create Expense (Example)

Now if the end user selects the above combination of expense type and province, the tax amounts are auto calculated for the user. For example, the following screenshot shows the auto calculation and auto-population of tax data for the state “British Columbia (BC)” and expense type “Web Site and IT Expenses - IT Expenses”. The tax amounts are displayed in the respective fields (GST/PST) for reference of the user. The way information is displayed on the expense screen is identical to Option 1.

Integration Example with Business Central (Tax Area Code & Tax Group Code) 

During the integration, the tax amounts will not be entered in Business Central, but instead the integration will pass Tax Area Code (maintained in the Tax Rate Master) and Tax Group Code (Maintained on the Province / State master) along with the pre-tax amount. If we continue with our previous example, and integrate it with BC, the pre-tax expense amount was $100 was sent to BC and the GST of  $5 and PST of $7 was skipped as BC has instead sent the Tax Area Code and Tax Group Code values. Hence, you see only 1 line in Business Central ($100) with the corresponding GL codes.

Purchase Invoice Integration Option

In case you send expense reports as Purchase Invoices, we will assign the appropriate Tax Area and Group Codes on the Purchase Invoice Lines based on the configuration done in the above section.

Tax Area code – Gorilla Expense maps the Tax Area code to the General Journal line depending on the Province/State user has selected on the expense line

Tax Group Code - Gorilla Expense maps the Tax Group code to the General Journal line depending on the Province/State user has selected on the expense line.

General Journal Integration Option

The integration is done by posting an expense as an Invoice type document to the General Journal Entry screen. The screenshot below shows an expense after it is posted to the Business Central General Journal.

Tax Area code – Gorilla Expense maps the Tax Area code to the General Journal line depending on the Province/State user has selected on the expense line

Tax Group Code - Gorilla Expense maps the Tax Group code to the General Journal line depending on the Province/State user has selected on the expense line