Tax Reporting—Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company.

Required Data

Tax Transactions

Purpose: The purpose of this exercise is to show you how to enter tax accounts and tax transactions and update them to the general ledger. These transactions will be used in the exercises below.

  1. Enter tax accounts.

 General Exercise for Accounting Rules – Accounts  

  1. Enter tax transactions as manual vouchers, and update them to the general ledger. Remember to enter tax codes in the manual voucher. The Manual Postings exercise only describes how to enter a simple manual voucher.

General Exercise for enter Manual Postings

Main Exercises

Fetch Tax Ledger Info

Purpose: The purpose of this exercise is to show you how to retrieve data from the general ledger into the tax ledger for reconciling and reporting.

Windows:
Fetch Tax Ledger Info

  1. Open the Fetch Tax Ledger Info window.
  2. Press OK.

Note: To avoid discrepancies between the tax ledger and the general ledger, it is recommended to use the Schedule… possibility, i.e. you make use of the recurring execution e.g., on a daily basis. 

Overview Tax Transactions

Purpose: The purpose of this exercise is to show you how to get an overview of and verify information taken from the general ledger.

Windows:
Tax Transactions

  1. Open the window Tax Transactions, and populate it (F2).
  2. Select a row, right-click, and then click Voucher Details. This takes you to the voucher as it is stored in the general ledger, and all posting lines are shown. Close the detail window.
  3. Select a row again and right-click, but this time click Modify Tax Transactions.
  4. Mark Enable Change of Tax Number check box, enter a new tax number in the Tax ID Number field and save.
  5. Populate the overview window. The new tax number appears.

Query Balances of Tax Accounts

Purpose: The purpose of this exercise is to show you how to get an overview of all tax accounts, sorted by account number, year, and period

Windows:
Balance per Tax Account

  1. Open the Balance per Tax Account window, and populate it (F2). The information that appears is sorted by year, period, and tax account. 
  2. Select a row, right-click, and then click Tax Transactions. This opens a separate window showing all postings that refer to this account.
  3. Select a row, right-click, and then click Voucher Details. Now you can proceed further to the single voucher.

Create a Tax Report Proposal

Create a Tax Report Proposal

Purpose: The purpose of this exercise is to show you how to extract data from the tax ledger and prepare a report for the tax office.

Windows:
Automatic Tax Proposal

  1. Open the Automatic Tax Proposal window. Right-click and then click Load New Proposal.
  2. Enter a description for your proposal.
  3. Select your tax office from the List of Values (F8).
  4. Select the SALES tax report.
  5. Select the day or period range. This depends on your customer and supplier invoices and payments. The default is the actual period-1.
  6. Click OK.
  7. Open the Automatic Tax Proposal window. The status of the proposal is Created.
  8. Select the row, right-click, and then click Details. Check the entries. You should see customer-related postings only (F and N voucher types). Close the Automatic Tax Proposal Details  window.

Note: Within the detail window, one or more postings can be selected and deleted. This means that these postings are not used in this proposal but remain in the tax ledger for further use. You can also right-click in a row and select Update Sub Group to correct or modify the sub group ID for a detail line.

  1. Right-click and then click Acknowledge. The status of the proposal changes from Created to Acknowledged.
  2. Right-click and then click Print Definitive Report. You will get a printout of the tax data that is ready to be sent to your tax office. The proposal is set to the Reported/Valid status.
  3. Repeat steps 1–10 using PURCH tax report instead.

Note: The status of the proposal is repeated in Query Tax Transactions. After printing the definitive report, every transaction is set to Reported. You can optionally print a preliminary report before acknowledging the report proposal, so that transactions will remain in the status Created.

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