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Tax Details in Lease Contracts

The objective of this blog post is to explain the newly introduced tax details in lease contracts.

It happens, that agreed services in lease contracts apply to different tax rates. Up to the 1911 release it was not possible to reflect this in lease contracts by entering multiple tax codes for a given condition. With the 2002 release we introduced the tax details for conditions of leased objects.

You can now define for certain conditions – lease installments, service charges or initial cost – multiple tax codes. To find the tax details open a lease contract and select the Leased Objects tab. In the Conditions sub tab select a lease installment, service charge or initial cost of a leased object. Next to the Recurrence you will find the Tax Details sub tab.

In case the Automatic Invoicing indicator is set for a leased object, at least one tax code must be entered under tax details. In this example the lease installment amount of 1.000 Euro is split into two amounts with different tax codes assigned. The system checks, if the total amounts defined under tax details sum up to the selected lease installment amount.

For each tax code entered under tax details, a separate payment schedule line is generated. In this example, for each due date of the lease installment two payment schedule lines are displayed in the Payment Schedule report. For further information the tax rate can be added in the report.

The Lease Contract Invoice Run considers the multiple tax codes per condition and creates a separate supplier invoice line item for each tax code.

You can maintain the tax details when you create a new lease contract, or when you edit a lease contract with In-Preparation status. As soon as the lease contract gets valuated, the tax details cannot be changed anymore.

We have also enhanced the ManageLeaseContractsIn and QueryLeaseContractQueryIn web services as well as the migration template for lease contracts, so that they can handle multiple tax codes in conditions.

This explanation shall help you to understand why the tax details for lease contracts were introduced and how to use them.

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