Modifying tax calendar details

This page allows you to modify the details of a tax year. Tell me more.

• Select the “Tax Calendar” link at the bottom of the “Select Finance / Tax Calendar” page.

The “Edit Tax Calendar” page appears.

The system displays the following:

The system displays the following in the “Tax Year Details” group box:

• Modify the following if required in the “Tax Year Details” group box:

The system displays the following in the “Tax Year Details” group box:

• Modify the following if required in the “Tax Year Details” group box:

Note: This date can be modified provided no financial transactions have been posted.

If you want to decrease a tax year, which has every quarter as a tax period, you must modify the end date of the year prior to the start date of the last quarter. The starting date of the subsequent tax year, if it has been defined, will be realigned automatically Refer Example 1.

If you want to extend a tax year the start date of the subsequent tax year will be redefined. If required the first tax period of the second year might be deleted Refer Example 2.

•  Modify the following if required in the “Tax Period Details” multiline:

The system displays the following:

Note: The system displays the start date of the tax year by default in the first row of the multiline. In the subsequent rows of the multiline the system displays the start date as the end date of the previous tax period + 1.

•  Modify the following if required in the “Tax Period Details” multiline:

Note: The date entered in this field must not be after the end date of the financial year and before the start date of the financial period.

Note: If “Yes” is selected for a tax period all the preceding tax periods must also have legacy dates.

If “No” is selected for a financial period, the subsequent tax periods must not have legacy dates.

•  Click the “Edit” pushbutton to save the modifications made.

The system saves the modifications made to the tax year. The system also updates the modifications made to the child companies to which the tax calendar has been attached.

The system also updates the login ID of the user and the system date in the “Last Modified By” and “Last Modified Date” fields.

The system displays the following:

To proceed, carry out the following

• Select the “Attach Notes” link at the bottom of the page to record your observations.

Modifying tax calendar details – An overview

You can modify the details of a tax period / year that is subsequent to the current tax period / year.

This page allows you to modify the description of the tax year. If the end date of the financial year is extended or reduced, the system realigns the dates of the tax periods based on the modified end date. The starting date of the subsequent year will also be realigned automatically.

You can also modify the details of the tax period like the code identifying the tax period, the description identifying the tax period and the end date of the tax period. You can also set whether the tax period is a legacy period for the financial year. The system stores the login ID of the user and the system date along with the modified details.

EXAMPLE 1

 For “Company ABC” the following tax years have been defined:

Every quarter has been defined as a tax period in both the tax years. If the duration of the tax year “TY1” has to be decreased from 31^st December‘01 to 30^th September’01 it will be permitted on any date prior to 1^st October’01 provided tax entries have not been posted during the period 1^st October’01 to 31^st December’01.

The duration of the tax years after the decrease in the duration would be as follows:

For example, there are two tax years TY1 and TY2. TY1 begins on 1/1/2000 and ends on 31/12/2000 and TY2 begins on 1/1/2001 and ends on 31/12/2001. Every quarter has been defined as a tax period in both the years. If tax year TY1 has to be extended from 31/12/200 to 31/05/01, the start date of tax year TY2 will change to 01/06/01. Subsequently the first tax period of TY2 will be deleted.

Example 2: 

For “Company ABC” the following tax years have been defined:

Every quarter of both the financial years “TY1” and “TY2” have been divided into tax periods. The following are the start dates and the end date of the tax periods:

If tax year “TY1” has to be extended from 31^st December’01 to 31^st March’02, the start date of the tax year “TY2” will be changed to 1^st April’02. Subsequently the first tax period “TY2-TP1” will be deleted. The following would be the start and end dates of the modified tax periods: