Electronic Invoicing with GST or VAT

Contact Innovative to enable the option either to support electronic invoicing with taxes at the line level or to process tax received at the summary level to a dedicated fund. Note that this option applies to EDIFACT Invoicing and Electronic Serials Invoicing only. This option can be set separately for each accounting unit, if applicable. Otherwise, the setting is system-wide.

By default, Sierra is configured to process U.S. sales tax received at the summary level. When processing an invoice, the system prorates this tax amount across all line items in the invoice. As an option, Sierra can process EDIFACT invoices and serials electronic invoices with Goods and Services Tax (GST) or Value Added Tax (VAT) received at either the line level or the summary level.

Summary Level: GST or VAT tax received at the summary level is usually paid using a dedicated fund. Choosing this option allows your library to easily track taxes that are eligible for reimbursement by a government agency. Once your library has chosen a dedicated fund, this fund is used for all invoices with GST or VAT. If your library is not set up to apply the tax to a dedicated fund, the system prorates summary-level tax amounts across the line items.
Line Level: By choosing the option to pay tax at the line level, your library can accommodate taxes which are applied at different rates (for example, different VAT rates for different material types).

Before enabling one of the options above, contact your vendors to ensure they can transmit invoice files with the tax coded correctly. Regardless of the option you choose, the EDIFACT invoicing and electronic serials invoicing processes are the same.

Note that this option also enables your library to manually create invoices and pay tax at either the line-level or to a dedicated fund.