Tax Differences

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.

In Microsoft Dynamics NAV, you can set up tax difference registers and tax difference journals to track and manage differences between book accounting and tax accounting amounts.

Preparing the Chart of Accounts

Before you set up tax differences, you will have to make sure that your chart of accounts is set up to correctly handle tax accounting and tax differences. At a minimum, your chart of accounts must contain tax difference accounts for income and expense transactions.

Getting Started with Tax Differences

To set up and view tax difference entries, you will use the following tables, which support tax differences windows.

Window	Description
Tax Diff. Posting Group	Specifies posting groups for tax difference transactions.
Tax Diff. Journal Template	Specifies the journals that are used for posting tax difference entries.
Tax Calc. G/L Corr. Entry	Specifies tax difference information that is needed for external reports and forms.
Tax Diff. Journal Line	Specifies posted tax difference journal entries.

See Also

Concepts

Setting up Tax Difference Calculation
Tax Difference Registers
Tax Accounting
Tax Registers

Other Resources

Tax Reports