Post Tax Differences

The Tax Difference Journal is used to create and post tax difference transactions. Tax differences are variations in tax amounts caused by the different rules for recognizing income and expenses between entries for book accounting and tax accounting.

You can use the Tax Difference Journal window to manually create tax difference journal entries or you can modify existing entries created by periodic tax difference calculation activities. When you post the Tax Difference Journal window, tax differences entries are posted to the selected posting groups.

To post tax differences

1. Choose the icon, enter Tax Difference Journals, and then choose the related link.

2. Fill in the fields as described in the following table.

   Field	Description
   Posting Date	Enter the transaction date.
   Document No.	Enter the document number from the source transaction.
   Description	Enter a description for the transaction.
   Tax Diff. Type	Select if the tax difference is Constant or Temporary.
   Tax Diff. Code	Select an identifying income or expense code that defines the source of the tax difference.
   Source Type	Select the source of tax difference. The options include Future Expense, Fixed Asset, and Intangible Asset.
   Source No.	If the Source Type is Future Expense, enter an identifying code for the future period expenses. Otherwise, leave this field blank.
   Jurisdiction Code	Select the identifying code for the jurisdiction that is used to calculate taxable profits and losses for tax differences.
   Norm Code	Select the identifying code for the norm jurisdiction that is used to calculate taxable profits and losses for the tax differences.
   Tax Factor	Enter the profit tax rate that is used to calculate tax differences.
   Amount (Base)	Enter an expense amount based on book accounting transactions. This information is used if the tax difference calculation is for a set period of time.
   Amount (Tax)	Enter an expense amount based on tax accounting transactions. This information is used if the tax difference calculation is for a set period of time.
   Difference	Enter the value of the difference between the book accounting and tax accounting transactions.
   YTD Amount (Base)	Enter the year-to-date value of the expense or income amount based on the book accounting data.
   YTD Amount (Tax)	Enter the year-to-date value of the expense or income amount based on the tax accounting data.
   YTD Difference	Enter the year-to-date value of the difference between the book accounting and tax accounting transactions.
   Tax Diff. Calc. Mode	Specifies the difference of the counting mode. If Balance is selected, the difference will be calculated by a creating total starting from the start of the year. If not selected, the difference will be created for the current period.
   Tax Amount	Specifies the counting result. The value of this field will correct the profit tax in the book accounting transactions.
   Asset Tax Amount	Specifies the calculated asset tax amount.
   Liability Tax Amount	Specifies the calculated liability tax amount.
   Disposal Tax Amount	Specifies the tax amount that is written off at disposal of an item.
   DTA Starting Balance	Specifies the starting disposal tax amount before counting.
   DTL Starting Balance	Specifies the starting disposal tax liability amount before counting.
   DTA Ending Balance	Specifies the disposal tax amount after counting.
   DTL Ending Balance	Specifies the disposal tax liability amount after counting.
   Disposal Mode	Select if you want to write down the tax difference or transform it into a constant difference.
   Disposal Date	Enter the date of the item’s disposal.
   Partial Disposal	Select if you want to dispose of an item that causes differences in the expense or income code. If this field is not selected, the tax differences are written off.

3. Choose the Post action. The tax difference journal transaction is posted.

4. Choose the Ledger Entries action to open the Tax Diff. Ledger Entry window and review the posted entries.

See Also

Tax Differences
Setting up Tax Difference Calculation
Tax Accounting
Tax Registers
Create Tax Registers

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