Challenge: When to Recalculate Taxes Due on Receivables

Many of our customers receive monthly Sales & Use Tax updates via the Vertex “L” Series monthly file upload but are often unaware of how the rate changes will be applied across their receivables in InfoLease®.

The answer lies within both Lease and Lessor Parameters.


All rate changes received via the “L” Series monthly update are first loaded in the system’s tax table. These updates will contain the new tax rate information along with an Effective Date of the change. A second process called Tax Update needs be run to apply the new tax information to assets on the system. Depending on your parameters, this process can also recalculate taxes on your outstanding receivables.

The first parameter to check is a Lessor Parameter called “Recalculate Taxes.” This setting can be found under the Accounts Receivable section of the Lessor parameter screen. There are three options:

  1. No Recalculate Taxes – Tax amounts will not be updated on unpaid receivables.
  2. Recalculate All Taxes – Tax amount for all unpaid receivables on a contract will be updated to reflect the new tax rate. This setting will update open items through Tax Update.
  3. Unpaid with Effective Date – Only unpaid receivables with a billing or due date after the effective date of the rate change will be updated. A system Lease parameter determines what date on the receivable will be used. Under Lease Parameters there is a setting called “Accrual Billing or Due.”

    (B)illing – The rate change date will line up with the date the receivable is created or “invoiced.”

    (D)ue – The rate change date will be compared to the due date of the receivable.

Please contact Tamarack if you would like to learn more!

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Tamarack Technology, Inc. is a leading provider of independent software, operational, and technology services supporting the equipment finance industry for more than 20 years.


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