Tax Book Processing – An overview
Introduction
A Company is a legal entity that is required to generate financial statements for external reporting. There is also a need to maintain Tax books separately from finance books. Tax book is basically maintained for tax purposes and thus enables calculation of income tax to be paid by the company very easily.
A tax book is almost similar to a finance book, which is a repository of all accounting information. Except that it has an additional provision for recording tax related transactions directly.
Tax book can be maintained at company level as well as at the finance book level.
Feature Highlights
Maintenance of all tax posting transactions.
Support for multiple tax books processing for recording tax transactions separately consolidation or aggregation into a central or a main tax book.
Provision for maintaining the initial balances for a particular tax book. The initial balances can be maintained in Account currency, Base currency. Provision for uploading the Initial balances from external sources like spreadsheet (excel) is for ease of data entry.
Provision to create tax journals, which can be posted to all account codes.
List of Activities
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Go to Activity… |
For… |
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Create Initial balance entry |
Creating initial balance for the tax book |
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Upload Initial Balance entry |
Uploading initial balance for the tax book through Excel |
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View Initial Balance entry |
Viewing initial balance for the tax book |
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Create Tax Journal |
Creating tax journal voucher |
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Reverse Tax Journal |
Reversing the tax journal voucher originally created |
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View Tax Journal |
Viewing tax journal voucher |
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View Account Balance |
Viewing account balance for the tax book |
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Close Tax Book Calendar |
Closing tax book calendar for a tax period / year |