How to: 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 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, tax differences entries are posted to the selected posting groups.
To post tax differences
In the Search box, enter Tax Difference Journal, and then choose the related link.
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.
On the Action Pane, in the Process actions group, choose the Post button. The tax difference journal transaction is posted.
On the Action Pane, in the Process actions group, choose Ledger Entries to open the Tax Diff. Ledger Entries window and review the posted entries.
See Also
Concepts
Tax Differences
Setting up Tax Difference Calculation
Tax Accounting
Tax Registers
How to: Create Tax Registers