Accounts Payable "Tax Code" drop down list does not show

The above picture is an image of how the Default Accounts Payable looks like in the system as soon as you enable suppliers. Which is great as it assigns the amount due for payment for every supplier. However, there is one problem and that is that this Accounts payable does not have the “Tax Code” drop-down list, and so what it does is that when i assign a purchase on name of a supplier the system does not allow me to allocate tax to those purchases, so in the summary even though i did a “Tax input” my tax payable is not changing.

What i would like to do is make my accounts payable as shown in the picture below. However this is custom account made by me, and the problem with it is that whenever i assign purchases to custom accounts payable it does register the tax amount from the purchases but the amount owed to suppliers does not change and remains zero in the “Suppliers” tab

Please advice

There is a very good reason for that. Posting of credits to Accounts payable from purchase invoices is not recording the taxable aspect of a purchase. The tax corresponds to the debit posted to the expense account. Expense accounts do have the tax code field. In other words, you are trying to apply a tax code to the wrong account.

That is because you have defined an ordinary account as your Accounts payable account, which bypasses many necessary features. Most important is that you have no subsidiary ledgers for your suppliers. If you want a different Accounts payable account, you must create a custom control account made up of suppliers.

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