Approve Tax Allocations via Tax 2.0

Tax 2.0 is Chrome River's enhanced tax engine that allows tax approvers to confirm or edit tax allocations and finalize them before the report is approved.

• The tax approver role can be assigned to one of your approvers or approval groups. It can be the same group of approvers as your AP Review. Open a case with the Help Desk to have the role assigned.

Under certain circumstances, the system will require a tax approver to confirm or edit tax allocations. A notification will appear in the preview of any expense approval that requires verification.

Review Tax

1. Click VIEW DETAILS to open the report.

2. A “Verify Tax Information" banner on the affected line item will alert you that it contains unconfirmed tax. Scroll down to the VAT section.

3. To view the receipt associated with the tax, click VIEW RECEIPT.

4. If everything looks correct in the tax section, click CONFIRM to clear the warnings and make the report eligible for approval.

Edit Tax

1. To make changes to the tax allocation, click EDIT.

2. Each tax allocation has an associated tax code. Certain expenses may have multiple tax rates, and some of these may not be applicable. Click the trash bin icon to remove them.

• Rate: The rate for this tax code. Click the Rate to allocate everything to this single tax rate for this expense.

• For example, if only one of the rates applies to this expense but your organization's rules calculated multiple tax lines, you can quickly allocate to this one rate. It is recommended to remove the other unused tax lines after they are zeroed out.

• Tax: The amount of tax.

• Net: The pre-tax portion of the expense—i.e., the price of the goods or services.

• Gross: The sum of Tax and Net. This is a visual calculation only and does not affect the export.

• Reclaimable: A visual calculation of the Tax that can be reclaimed. This calculation is based on the percentage configured in your organization's VAT rules.

3. There are two warning messages that may appear.

• The Total Tax Allocated Does Not Match the Line Item's Approved Amount: Click VIEW DETAILS to understand how the system calculated the variance and to help identify what still needs to be updated.

• Tax Amount Cannot Be Greater Than Net Amount: Click VIEW DETAILS to see a breakdown of the system's calculation. On the pop-up window, you may also click the question mark to see whether the tax is Single Net or Multi Net.

Single Net vs. Multi net Tax

There are two different ways VAT may be charged, depending on the country and the location within that country. Hover over the question mark icon to see which type applies.

• Single Net: All tax rates are applied to the same pre-tax amount.

• An expense might have a GST of 5% and an HST of 10%, making the effective tax 15%. In the example below, the effective tax is 12.11%.

• Multi Net: Each tax rate is applied to an individual portion of the pre-tax amount.

• An expense might be taxed equally between a 20% rate and a 10% rate. But only half the expense will be taxed at 20% and the other half at 10%, making the effective tax 15%.

4. If necessary, click RESTORE ALL to return all the amounts to the ones originally calculated by Tax 2.0.

5. Clicking REMOVE ALL is the same as manually removing every tax allocation

6. When the tax allocations are correct, click APPLY.