Use the Tax Receivable Report to view all the sales taxes receivables as collected by Customer Order Entry and Accounts Receivable. Usually, you print this report when preparing the tax return.
You can produce this report for a range of tax codes, invoice dates, and customers.
This report is most applicable to an area-based tax system defined for Tax System 1.
This report lists detailed information from the tax records. You select the range of tax codes and customers to include, and the inclusive date range of the tax records. The system groups and subtotals the records by tax code, credit transactions are listed as negative values, and a grand total of the report for all groups is included at the end of the report.
NOTE: The system extracts the tax records from the invoice history. If you purge invoice history before printing the report, any tax records dated earlier than the report's date range are lost and therefore not included in the report.
The invoice history does not contain postings you performed manually from the G/L journal to the tax G/L accounts. Also, if you generated tax account distributions from Customer Order Entry before posting them in A/R, and then adjusted the distributions manually, the adjustments are not retained. Therefore, the report does not reflect these secondary changes to the account balance.
In Customer Order Entry, the system creates the tax records when it prints and posts each invoice. The system does not alter these records, even if you change the transaction in A/R or G/L.
If you enter invoices, credit memos or debit memos directly in A/R (not from Customer Order Entry), the system creates the tax records, based on the values in the special tax fields in the G/L distributions. When you post the manual transactions, the system creates the tax records.
Compare the contents of the report to the tax account balances for the period reported from the G/L. If you find discrepancies, first verify that A/R does not contain unposted invoices or credit memos that were created from Customer Order Entry.
Then, make sure the A/R Distribution journal has been posted to the ledger. You may have additional discrepancies if you manually adjusted the tax account balances with journal entries, or manually adjusted the A/R Invoice G/L Tax Account Distribution records. Only these discrepancies are acceptable.