Posting Bills of Exchange Receivable with Stamp Tax 

Use

In Chile, when a small business wants to make a payment to a large business by bill of exchange, the large business will often issue the bill itself and send it to the small business to be signed. This procedure affords the large business more security, and it also mean that the large business is liable for stamp tax (which is normally paid by the customer).

Normally, when you enter a bill receivable in the system, the system automatically creates a line item for the tax and debits it to the customer account (see Posting a Bill of Exchange Receivable). For Chile, however, the tax has to be debited to an expense account, with an offsetting entry to a tax account.

To ensure that the tax is posted to the expense account, you have to enter the tax manually by debiting the expense account and crediting the tax account. You must also define tax codes for this purpose.

You have defined a tax code for stamp tax (see Tax Code).

1. Post the bill as described in Entering and Posting Bills of Exchange Receivable. Follow steps 1–3 only, but in step 3, do not enter a tax code or a bill of exchange tax code. This would cause the system to post the tax to the customer account automatically.
2. In the same document, create two line items for the stamp tax: a debit posting to a tax expenses account and a credit posting to a stamp tax account (specifying the tax code for stamp tax).
3. Clear the bill of exchange against the open items that the bill is intended to cover, as described in steps 4–6 of the documentation.