When AP Agent extracts a tax and fee total from an invoice, it can automatically spread that amount across the invoice's taxable line items. The Tax & Fees Allocation setting controls how.
Prerequisites
AP Agent is enabled for your organization.
You have access to the AP Settings page. Any user with existing access to AP Settings can update this setting.
IMPORTANT: This setting applies to your entire organization. It cannot be set per hotel. Changing it affects every invoice extracted across all of your properties.
Step-by-Step Guide
Step 1: Open AP Settings
Navigate to Settings > AP Settings within Accounting. On the Accounts Payable Settings page, stay on the General tab and scroll to the AP Agent section.
Step 2: Choose an Allocation Option
Open the Tax & Fees Allocation drop-down and select an option:
Option | How it works |
Allocate Proportionally (default) | Distributes tax and fees across line items in proportion to each line item's dollar amount. |
Allocate Evenly | Splits tax and fees equally across all line items. Any rounding remainder goes to the last line item. |
Allocate to Largest | Assigns the full tax and fee amount to the line item with the highest dollar amount. If several line items tie, the amount is split evenly among them. |
Don't Allocate | No automatic allocation. Users allocate tax and fees manually, as before AP Agent. |
The selected option applies to invoices extracted from that point forward.
NOTE: Automatic allocation applies only to line items AP Agent has identified as taxable. Line items it did not identify as taxable receive no tax & fees under any option.
Example
An invoice has two taxable line items — $100 and $300 — and $20 in tax & fees:
Option | Line item 1 ($100) | Line item 2 ($300) |
Allocate Proportionally | $5.00 | $15.00 |
Allocate Evenly | $10.00 | $10.00 |
Allocate to Largest | $0.00 | $20.00 |
Don't Allocate | Entered manually | Entered manually |
Choosing the Right Option
Allocate Proportionally fits most organizations because each account carries tax in proportion to its share of spend. If your accounting treatment calls for something different — such as carrying all tax on a single line — choose the option that matches, keeping in mind the change applies to every property.
NOTE: Whatever option is set, the allocation is a starting point. Users can adjust tax & fees on individual line items before sending the invoice to approval.
What It Looks Like on the Invoice
After extraction, each taxable line item shows its allocated share in the Tax & Fees column, and the Total column adds it to the line item amount.
Summary
Found under Settings > AP Settings > General > AP Agent.
Four options; the default at launch is Allocate Proportionally.
Allocation applies only to line items AP Agent identified as taxable.
Organization-wide - not configurable per hotel.
Allocated amounts can always be adjusted on the invoice.
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