Create Tax Journal – A summary of the activity

A tax journal is created to post details that have tax implications in the appropriate account as per the income tax requirements. For example, a tax journal can be created for extra ordinary items, cash payments that have exceeded the limit or cash loans and advances that have tax implications. A tax journal can be posted in accounts that are open for tax transactions.

This page allows you to create a tax journal voucher. You can select the code identifying the tax book in which the tax journal must be posted. You can enter the number identifying the tax journal if you have opted for the “Manual” numbering type. The system generates a unique voucher number if you have not opted for the “Manual” numbering type.

You can also enter the code identifying the account in which the journal amount must be debited or credited. This account codes properties that is Account group, Account classification, Auto Posting Account type, Control Account type must have been excluded in the “Maintain Posting Rule” activity of the “Accounting Setup” business component. You can also select the code identifying the currency and the amount for which the tax journal must be created.

The system calculates and displays the sum total of the amounts that have to be debited or credited in the currency in which voucher is to be created and also in the base currency of the company. The system updates the status of the newly created tax journal as “Authorized”. The details of the authorized tax journal are posted in the selected tax book. The system also stores the login ID of the user and the system date along with the tax journal details.