Creating initial balances for tax books
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This activity allows you to enter the initial balances for all the account codes in a selected tax book. Tell me more.
Select the “Create Initial Balance” link under the “Tax Book Processing” business component.
The “Create Initial Balance” page appears.
Enter the following fields:
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Tax Book |
Use the drop-down list box to select the code identifying the tax book for which the initial balance entries are to be posted. All tax books of type “Posting” and for which initial balance entries have not been created will be available for selection in the ascending order. |
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Account Group |
Use the drop-down list box to select the account group to which the account codes for which you want to enter the initial balances belong. You can select from “Asset”, “Liability”, “Capital”, “Revenue” and “Expenditure”. |
The system displays the following:
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Tax Year |
The code identifying the tax year for which the initial balance entries have to be created. |
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Tax Period |
The code identifying the tax period for which the initial balances have to be created. |
Click the “Get Account Details” pushbutton to retrieve the details of the accounts.
The system retrieves and displays the following in the “Accounting Details” multiline based on the selected tax book:
Note: The system retrieves all the account codes effective for the selected tax book. If the process of entering initial balance entries is under progress, the system also retrieves the balances that have been already entered and temporarily saved.
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Account Group |
The account group to which the account codes belongs and for which you want to enter the initial balance. |
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Account Code |
The code identifying the account for which the initial balances have to be entered. |
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Currency |
The code identifying the currency of the account. |
Enter the following fields in the “Accounting Details” multiline:
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Dr / Cr |
Use the drop-down list box to select the debit or credit identifier of the account. The system displays the debit identifier by default at the launch of the page. |
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Transaction Amount |
The initial balance amount in the account or the transaction currency (Decimal). The value entered in this field must be greater than or equal to zero. |
Note: This field must not be left blank if the account currency is different from the base currency.
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Base Amount |
The initial balance amount in the base currency (Decimal). Mandatory. The value entered in this field must be greater than or equal to zero. |
Note: When the account currency and the base currency are the same and if values have not been entered in this field, the system stores the value entered in this field as the transaction amount.
The system displays the following:
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Account Description |
The textual description of the account. |
Check the box in the “Select” column of the multiline to mark the details entered for the account code for deletion.
Click the “Compute” pushbutton to calculate the debit / credit totals in the base amount.
The system calculates and displays the debit / credit totals in the respective fields.
The system displays the following:
Base Amount
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Debit Total |
The sum debit total of all the amounts in the base currency. |
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Credit Total |
The sum credit total of all the amounts in the base currency. |
Click the “Save” pushbutton to save the balance details of the accounts.
The system saves the all the balance amounts temporarily till the “Create Initial Balance” is executed.
Click the “Create Initial Balance” pushbutton to create the initial balance entries for the selected tax book.
The system updates the “Completed” status with respect to the initial balance entries for the selected Tax book.
“Tax Year” and “Tax Periods” must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component.
“Tax Books” must have been created while defining finance books in the “Create Finance Book” activity of the “Organization Setup” business component if “Tax Book Applicability” is set to “Yes” in the “Company Process Parameters” activity.
“Account Codes” must have been defined in the “Create Operative Chart of Accounts” activity of the “Accounting Setup” business component. These accounts must be attached to a finance book through the “Attach / Detach Operative Chart of Account – Finance Book” activity of the “Accounting Setup” business component.
What you can do in this activity
Create initial balances for tax books
Create initial balances in different currencies
Initial balances can be entered for a tax book till the final “Create” is executed. A tax book cannot be closed without creating the initial balances.
Go to “Create Initial Balance” page.
Enter the necessary information.
Create initial balances for tax books
Initial balances can be entered for the tax books. Based on the selected tax book, initial balances can be entered, these balances are saved temporarily until the final “Create” is executed.
Go to “Create Initial Balance” page.
Select the Tax book.
Create initial balances in different currencies
Initial balances can be entered in two different currencies if the account currency is different from the base currency of the company.
Go to “Create Initial Balance” page.
Enter the different amounts.
Balances entered for the accounts are saved temporarily till final “Create” is executed. Initial balances can be modified or new account balances can be added any number of times until the final “Create” is executed.
Go to “Create Initial Balance” page.
Enter the necessary information
Save it temporarily.