How does NS track taxes on transactions?
I see that I can create Tax Codes, Nexuses, and also a setting for Withholding Tax, but I’m wondering how this translates onto the transactions and then reporting thereafter. I was told that there’s no need to create a separate Journal Entry since NetSuite “captures” the tax information already.
Any info on how this is done logic-wise & accounting-wise would be most appreciated. Thank you.
Most of this depends on your account setup.
The simplest version is one that looks at shipping addresses in transactions.
There is a more advanced version that looks at shipping address and items in combination.
There is an even more advanced answer in suitetax though I haven’t yet set it up.
You can use 3rd party setup, such as vertex or Avalara which will make an external API call to get the tax rate.
I’d suggest you review the taxation guide at the Oracle NetSuite guide page: