Taxable amount TAXABLE AMOUNT TOTAL doesn't match the INVOICE SUBTOTAL

Submitting Invoices with Tax in LEDES Format

Submit invoices in LEDES instead of PDF to save time, reduce errors, and get paid faster. You can still attach a PDF version if required by your client. Don’t worry, switching to LEDES doesn’t mean you need to start coding invoices (you don’t!), and your client’s experience won’t change.

Common Invoice Issues

Invoices can sometimes encounter errors related to tax fields, particularly when using the LEDES format.

The taxable amount includes: All fees, charges, commissions, and expenses (packing, transport, insurance, etc.) you pass on to your customer. The value of trade in goods made as part payment.

Even if some part of your invoice total are taxless, a 0% tax has to be entered into the system during submission. The taxable amount has to always add up to the invoice subtotal.

If a specific tax type or tax rate are missing from the dropdown, please reach out to your client to configure these.

Below are common issues and how to resolve them.

Issue 1: No Taxes Applied

Scenario: Your invoice has no taxes.

Solution:

• Use the 0% tax option in the tax field.
• Input the invoice subtotal in the Taxable Amount field.

Tip: Always double-check that the taxable amount includes the full subtotal to ensure processing.

Issue 2: Missing Tax Type or Rate

Scenario: You can’t find the correct tax type or rate when submitting an invoice.

Solution:

• Contact your client’s Admin team to request the missing tax type/rate be added to the system.

Note: If the correct tax options are not available, the invoice may not be accepted, leading to processing delays.

Issue 3: Incorrect Taxable Amount Total

Scenario: The taxable amount doesn't match the total invoice value.

Solution:

• Ensure that the entire invoice total (Fees + Expenses - Discounts) is accounted for in the Taxable Amount field.
• Recalculate the amounts to verify that nothing is missing or incorrectly deducted.

Warning: If the taxable amount doesn't match the total, the invoice submission will be blocked.

Step-by-Step Guide for Tax Calculation in LEDES

1. Input Fees and Expenses:
   Start by entering your service fees and any associated expenses.

2. Select the Correct Tax Type:
   Use the drop-down menu to select the correct tax type or 0% if no taxes apply.

3. Calculate Taxable Amount:
   In the Taxable Amount field, input the subtotal of your fees and expenses.

4. Review Discounts:
   If discounts apply, ensure they are subtracted from the total before finalizing the taxable amount.

5. Submit the Invoice:
   Once you’ve verified that the taxable amount matches the total invoice value, submit the invoice for processing.

Example Invoice Breakdown

Tip: Always review your total invoice and taxable amounts before submission to avoid errors.

Troubleshooting

• Invoice Blocked: If your invoice submission is blocked, double-check that:

  • The taxable amount matches the total value of the invoice.
  • The correct tax rate or type is selected.
  • There are no missing fees or expenses in the taxable amount field.

• Missing Tax Type: Contact the Admin team to add any missing tax types or rates.

Note: Submitting invoices in LEDES helps you avoid many common issues associated with PDF submissions, ensuring faster and more accurate processing.

By following these steps, you can ensure smooth and error-free submission of invoices using the LEDES format.