Legacy Tax: Set Chart of Accounts as Tax Control Accounts for United States and Canada

Scenario: A user with an Administrator role wants to set accounts created in the Chart of Accounts page (Lists > Accounting > Accounts) as their Tax Control Accounts for United States and Canada but is unable to do so. These accounts are not available in the Liability/Sales Tax Account and Asset/Purchase Tax Account drop-down selection on the Tax Type record. Only accounts created from Setup > Accounting > Tax Control Accounts appear. The customer is using Legacy Tax (Advanced Taxes).

Explanation: The ability to set accounts created in the Chart of Accounts page as Tax Control Accounts for United States and Canada is currently a system limitation in Legacy Tax (Advanced Taxes) logged under Enhancement 406294 || Setup > Accounting > Tax Types > New > Liability/Sales Tax Account > ability to select accounts created in the Chart of Accounts.

Users will only be able to set Chart of Accounts as Tax Control Accounts only if the ONLY USE TAX CONTROL ACCOUNTS ON TAX TYPES preference on the Setup Taxes page is disabled. However, this preference is only available for VAT Countries, excluding both United States and Canada.

But worry not as the said functionality is available in SuiteTax:

1. Navigate to Setup > Tax > Tax Types
2. Click Edit beside a US or Canada Tax Type
3. On the Tax Type record > Accounts sub-tab, set the following:
4. Nexus
5. Payables Account
6. Receivables Account

Note that all accounts, including those created in the Chart of Accounts page, can be selected in both Payables and Receivables Account fields.