Tax Accounting
In Microsoft Dynamics NAV, you can set up and maintain tax registers to track taxable profits and losses. This is based on the following tax accounting principles:
The financial database is used for tax accounting.
The chart of accounts is used to track taxable profits and losses.
Income and expenses are recorded using separate subaccounts and dimensions.
Fixed asset transactions and expenses for future periods are tracked using the depreciation book for tax accounting.
Tax registers are grouped and totaled monthly. Each register has 12 values for a 12 month tax period.
Because Microsoft Dynamics NAV keeps the history of all transactions, detailed information from a transaction that changes taxable profits is automatically tracked. The information collected in tax registers meets the principles of tax reliability and tax validity.
Tax Registers
There are two types of tax registers that are used for tracking taxable profits and losses.
| Tax Register Type | Description |
|---|---|
Analytic Tax Register |
An analytic register is based on ledger entries for taxable transactions. The information provides a continuous chronological reflection of business operations, which tracks taxable profits and losses based on tax codes. |
Synthetic Tax Register |
A synthetic register is based on summarized and calculated information from an analytic register or another synthetic register. |
Transactions are processed using specific tax accounting principles that are applied to the following types of tax registers.
| Tax Register | Description |
|---|---|
General Ledger Entry |
An analytic register based on general ledger transaction entries. |
CV Entry |
A group of analytic registers based on information associated with debtor or creditor liabilities. |
Fixed Asset Entry |
A group of analytic registers based on tax data for fixed assets. This group is created by using a fixed asset ledger and a tax depreciation book that is not integrated with the financial accounting ledger. |
Item Entry |
An analytic register based on posted item transactions. |
Future Expense Entry |
A group of analytic registers based on tax data for future expenses. This group is created by using a fixed asset ledger and a tax depreciation book that is not integrated with the financial accounting ledger. |
Accumulation |
A synthetic register based on calculated algorithms defined during tax register set up. |
See Also
Tasks
How to: Set Up Tax Accounting
How to: Set Up Tax Register Sections
Concepts
Tax Registers
How to: Create Tax Registers
Tax Differences