Closing tax book calendar

This page allows you to close the tax calendar of a selected tax book. You can select the type of book for which you want to close the tax calendar. Tell me more.

Select the “Close Tax Book Calendar” link under the “Tax Book Processing” business component.

The “Close Tax Book Calendar” page appears.

Enter the following fields:

Book Type	Use the drop-down list box to select the type of tax book for which you want to close the tax calendar. “Main Tax Book” and “Posting Tax Book” will be available for selection if tax books of these types have been deployed in the login organization unit. The system displays “Posting Tax Book” by default at the launch of the page.
Tax Book	Use the drop-down list box to select the code identifying the tax book for which the calendar must be closed. All the tax books that are of the type selected in the “Book Type” field will be available for selection in the ascending order.
Closure Type	Use the drop-down list box to select the type of closure “Provisional Closure” or “Final Closure” which are available in the ascending order.
	Provisional Closure – indicates that the tax year / period can be closed for an interim time. The system arrives at the closing balances which are taken as the opening balances of the subsequent period / year.
	Final Closure – indicates that the tax year / period has been finally closed for the tax book. You cannot post any transaction for the closed tax year / period. There must be also be tax year / period subsequent to the one that is closed so that the closing balances can be taken as the opening balances of the subsequent period / year.
	The system displays “Provisional Closure” by default at the launch of the page.
Close Period / Year	Use the drop-down list box to select whether you want to close the tax period / year from “Period” or “Year”. The system displays ”Period” by default at the launch of the page.

Note: If “Year” is selected all the tax periods that have been defined for the selected tax year will be retrieved. If “Period” is selected all the tax periods that fall within the range specified in the “Tax Period From” and “To” fields will be retrieved.

Tax Year

Use the drop-down list box to select the tax year for which you want to close the selected Tax Book.

When Closure type is “Provisional” selected, all the tax years that are in the “Open” or “Provisionally Closed” status will be available for selection in the chronological order. When Closure type selected is “Final”, the earliest tax year that are in “Open” or “Provisionally Closed” status will be available for selection. The system displays the start date and the end date of each of the tax years. The date range of the “Open” financial years must be before the system date.

Note: The last tax period of the selected tax year must be in the “Open” status if “Year” has been selected in the “Close Period / Year” field for “Final Closure”.

Tax Period From

Use the drop-down list box to select the tax period for which you want to close the selected Tax Book. All the tax periods that are in the “Open” status will be available for selection in the chronological order, if Closure type selected is “Provisional”. The earliest tax period that is in “Open” or “Provisionally Closed” status will be available for selection if Closure type selected is “Final”. The system displays the start date and the end date of each of the Tax Periods.

Note: The current Tax Period will not available for selection.

Use the drop-down list box to select the tax period till which you want to close the selected Tax Book. All the tax periods that are in the “Open” status will be available for selection in the chronological order. When closure type selected is “Final”, all the tax periods that are in “Open” status other than the last tax period of the tax year will be available for selection. The system displays the start date and the end date of each of the tax periods.

If you want to close the tax book for multiple periods, you can specify the starting and ending of the range in the “Tax Period From” and “To” fields. The system will retrieve all the tax periods that fall within this range for closure.
Click the “Get” pushbutton to retrieve the calendar details.

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

Tax Year Code	The code identifying the tax year.
Description	The textual description of the tax year.
Status	The status of the tax year. It could be “Open” or “Provisionally Closed”.

The system displays the following in the “Tax Calendar Details” multiline:

Tax Period	The code identifying the tax period.
Description	The textual description of the tax period.
Start Date	The date from which the tax period begins.
End Date	The date on which the tax period ends.
Status	The status of the tax period. It could be “Open” or “Provisionally Closed”.

Note: If the selected tax book is of the type “Main” then consolidation of all the corresponding “Posting tax books” must have been completed before closing the tax calendar “Finally”.

Click the “Close” pushbutton to close the tax year or period.

On Provisional Closure

The system calculates and saves the “Retained Earnings” temporarily as the difference of the “Total Revenue” and “Total Expenses”. “Total Revenue” is calculated as the difference of the debit and the credit balances of all the accounts that belong to the group “Revenue” and “Total Expenses” is calculated as the difference of the debit and credit balances of all the accounts that belong to the group “Expenses”. This retained earnings is also calculated and saved in the base currency of the company.
The status of the tax period / year is updated as “Provisionally Closed”.

On Final Closure

The system generates a unique document number for the selected tax year in the selected tax book.
The closing balances in all the accounts will be transferred as the opening balances for the subsequent “Open” tax period.
The system calculates and transfers the balances of the “Revenue” and “Expense” accounts to the “Retained Earnings” account with the narration “Closure Entry” for the selected financial year.
The system calculates and saves the “Retained Earnings” temporarily as the difference of the “Total Revenue” and “Total Expenses”. “Total Revenue” is calculated as the difference of the debit and the credit balances of all the accounts that belong to the group “Revenue” and “Total Expenses” is calculated as the difference of the debit and credit balances of all the accounts that belong to the group “Expenses”. This retained earnings is also calculated and saved in the base currency of the company.
The status of the tax period / year is updated as “Finally Closed”.

To proceed, carry out the following

Select the “View Year Closure Status” link at the bottom of the page to view the closure status of the tax year.
Select the “View Period Closure Status” link at the bottom of the page to view the closure status of the tax periods.

Closing tax book calendar – An overview

You can also select the tax book that you want to close. A tax calendar can be provisionally closed or finally closed. You can also select the tax year / period that you want to close in case of ‘Provisional Closure”. You can close the tax calendar available in the “Posting tax book” or a “Main tax book”. The status of the tax year / period is updated according to the type of closure selected. The system calculates the retained earnings and also transfers the closing account balance as the opening balance for the subsequent tax period or year. The system also nullifies the closing balances of all the account codes belonging to the account group “Revenue” and “Expenditure” while closing a Tax year.