video1.0<iframe src="https://www.loom.com/embed/fd57d4fb4a4a423388a9eff650a89637" frameborder="0" width="1366" height="1024" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>10241366Loomhttps://www.loom.com10241366https://cdn.loom.com/sessions/thumbnails/fd57d4fb4a4a423388a9eff650a89637-a0e1072a2322be0b.gif276.467This Loom explains how tax is calculated and handled in Lightyear when capturing invoice lines. Lightyear detects whether lines are taxable or tax free and assigns default tax codes configured in Settings under accountancy and tax rates, exporting codes from your accountancy system. Line-level tax is calculated from the net amount and the applied rate, and Lightyear may flag differences versus the supplier due to rounding, such as a one penny discrepancy where calculated VAT is 5,020 pounds 5 pence versus document VAT of 5,020 pounds 4 pence. A red bell alerts you to the variance and you can reconcile it by clicking the bell to add tax lines, amending a line tax amount, or adding a tax-only row; a yellow icon indicates any manual tax adjustments.