> For the complete documentation index, see [llms.txt](https://docs.charted.com/ap-automation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.charted.com/ap-automation/charted-configuration/invoice-ai/configuring-tax-and-freight-capture.md). # Configuring Tax and Freight Capture ### Freight Capture The *Freight Capture* setting automatically identifies shipping costs when an invoice is scanned, creating a separate line for those charges on the vendor bill. This is particularly useful for detailed accounting or reporting, as it helps ensure your NetSuite records accurately reflect freight expenses without manual splitting. To configure the *Freight Capture* setting, follow these steps: 1. If you need to separate freight costs automatically, start by going to the **Charted OCR Settings** page:\

2. To find the specific freight-related options, scroll to the **Freight Capture** section:\

3. Once you’re ready to make adjustments, click the **Edit** button at the top of the page to enable editing:\

4. If you prefer to map freight costs directly to an item, select a **Default Shipping Item** (e.g., FedEx) from the dropdown:\

5. In case you’d rather track these charges as expenses, choose a **Default Shipping Expense** from the dropdown:

Note: If both item and expense fields are filled, the item selection will take precedence. As long as you leave the *Default Shipping Item* blank, it would map to the *Default Shipping Expense* account.
6. Finally, to let *Invoice AI* parse and record freight charges on incoming invoices, click **Save**:\

### Tax Capture *Tax Capture* automatically identifies tax amounts when an invoice is scanned, creating a separate line for those charges on the vendor bill. This allows you to track and report sales tax or other applicable taxes more easily. Here are the steps in configuring the *Tax Capture* setting:
1. If you want to track and report sales tax automatically, go to the **Charted** **OCR Settings** page:\

2. To locate where you can configure tax-related fields, scroll down to the **Tax Capture** section:\

3. Once you’re ready to make changes, click the **Edit** button to enable editing:\

4. If you prefer associating a specific tax item by default, select a **Default Tax Item** from the dropdown:\

5. In case you’d rather book these charges as an expense, choose a **Default Tax Expense** from the dropdown:\
\ \ Note: Similar to *Freight Capture*, if both fields are filled, the *Default Tax Item* will take precedence.
6. Finally, to enable *Invoice AI* to identify tax amounts on incoming invoices, click **Save**:\
Use the matrix below to determine whether Tax Capture is the appropriate feature for your organization:
ScenarioInvoice AI Tax Capture Feature RecommendationWhy
Majority of invoices contain US taxesYesSetup one item or expense account to capture all taxes. Invoice AI will extract the tax amount and create a vendor bill line for taxes to the defined item or expense.
Majority of invoices contain International taxes (VAT/GST/PST)NoSetup a tax engine in NetSuite to calculate the tax providing flexibility on tax codes and GL accounts. The use of Charted Tax Capture will create a duplicate vendor bill line to the line created by the tax engine.
Tax Engine configured to calculates line level taxesNoIf a tax engine is configured, use that feature to set default tax codes on vendors/items. When creating vendor bill lines, Invoice AI will populate the appropriate vendor and item, which will then pull in the associated tax code you have established through your tax engine.
Subsidiary‑specific RequirementsMaybeInvoice AI defaults are global and apply to all subsidiaries. If your business needs more flexibility, you may choose to have our setting default and then manually change as needed or opt out of the feature all together.
Tax booking varies invoice‑to‑invoiceMaybeWe support all taxes going to one item/expense. If your business needs more flexibility, you may choose to have our setting default and then manually change as needed or opt out of the feature all together.
Do you have additional questions regarding Invoice AI and Tax setup? Visit our [FAQ](/ap-automation/charted-faqs/invoice-ai/how-do-i-setup-taxes-with-invoice-ai-to-match-my-business-needs.md) related to Invoice AI Tax Setup. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.charted.com/ap-automation/charted-configuration/invoice-ai/configuring-tax-and-freight-capture.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.