Answer
Nov 14, 2016 - 07:08 PM
LEDES 1998BI type LEDES files can include invoice tax data. However, each LEDES line item can only include one tax.
If you need to include an additional tax on the invoice, e.g. a Withholding Tax, Bar Tax, or any other kind of tax (recoverable or not), you need to add two rows (or "line items") to your LEDES file: (1) a taxable amount row, and (2) a balancing out row.
Follow these steps to do so:
Add a row (or "line item") to your invoice
In the EXP/FEE/INV_ADJ_TYPE column, enter "IF" to indicate an invoice-level adjustment to fees (if the tax is on fees) or "IE" to indicate an invoice-level adjustment to expenses (if the tax is on expenses)
In the LINE_ITEM_ADJUSTMENT_AMOUNT column, enter the amount of fees or expenses subject to the tax being entered (often just the net, pre-tax, total of the fee or expense line items); enter a negative amount if this is a recoverable tax - i.e. the tax lowers the overall billed amount
In the LINE_ITEM_TAX RATE column put the tax rate in the form of a decimal number between 0 and 1
The LINE_ITEM_TAX_TOTAL column should equal the LINE_ITEM_ADJUSTMENT_AMOUNT multiplied by LINE_ITEM_TAX_RATE
In the LINE_ITEM_TAX_TYPE column, enter what the tax is called, e.g. "Withholding Tax" or "Milan Bar Tax"
In the LINE_ITEM_DESCRIPTION column, also include the Tax Type you named in the LINE_ITEM_TAX_TYPE column
Add another row to your invoice
In the EXP/FEE/INV_ADJ_TYPE column, enter "IF" or "IE" (matching what you entered in step #2 above)
In the LINE_ITEM_ADJUSTMENT_AMOUNT column, enter the negative of what you entered in step #3 above
In the LINE_ITEM_DESCRIPTION column, enter "Balancing out [placeholder for Tax Type entered in step #6 above]"
NOTE: for each of these additional rows, the following columns should be blank - LINE_ITEM_NUMBER _OF_UNITS, and LINE_ITEM_UNIT_COST; for the second additional row, LINE_ITEM_TAX_RATE and LINE_ITEM_TAX_TOTAL should be "0", and LINE_ITEM_TAX_TYPE should be blank.
Follow the steps above for any additional tax you want included in your invoice.
If you need to include an additional tax on the invoice, e.g. a Withholding Tax, Bar Tax, or any other kind of tax (recoverable or not), you need to add two rows (or "line items") to your LEDES file: (1) a taxable amount row, and (2) a balancing out row.
Follow these steps to do so:
Add a row (or "line item") to your invoice
In the EXP/FEE/INV_ADJ_TYPE column, enter "IF" to indicate an invoice-level adjustment to fees (if the tax is on fees) or "IE" to indicate an invoice-level adjustment to expenses (if the tax is on expenses)
In the LINE_ITEM_ADJUSTMENT_AMOUNT column, enter the amount of fees or expenses subject to the tax being entered (often just the net, pre-tax, total of the fee or expense line items); enter a negative amount if this is a recoverable tax - i.e. the tax lowers the overall billed amount
In the LINE_ITEM_TAX RATE column put the tax rate in the form of a decimal number between 0 and 1
The LINE_ITEM_TAX_TOTAL column should equal the LINE_ITEM_ADJUSTMENT_AMOUNT multiplied by LINE_ITEM_TAX_RATE
In the LINE_ITEM_TAX_TYPE column, enter what the tax is called, e.g. "Withholding Tax" or "Milan Bar Tax"
In the LINE_ITEM_DESCRIPTION column, also include the Tax Type you named in the LINE_ITEM_TAX_TYPE column
Add another row to your invoice
In the EXP/FEE/INV_ADJ_TYPE column, enter "IF" or "IE" (matching what you entered in step #2 above)
In the LINE_ITEM_ADJUSTMENT_AMOUNT column, enter the negative of what you entered in step #3 above
In the LINE_ITEM_DESCRIPTION column, enter "Balancing out [placeholder for Tax Type entered in step #6 above]"
NOTE: for each of these additional rows, the following columns should be blank - LINE_ITEM_NUMBER _OF_UNITS, and LINE_ITEM_UNIT_COST; for the second additional row, LINE_ITEM_TAX_RATE and LINE_ITEM_TAX_TOTAL should be "0", and LINE_ITEM_TAX_TYPE should be blank.
Follow the steps above for any additional tax you want included in your invoice.
