Tax Payments incorrectly made outside of Tax Management Work Center

[Former Member]

Have a client that recently went live - and unfortunately recorded their tax payments over the last two months to another liability account, instead of recording them in the Tax Management Work Center. 

How do we include them after the fact so that the Tax Trial Balance is correct?

Thanks in advance for your ideas.

Raynes White

[marlene_katzschner]

Hi Raynes,

You have to clear the tax payment. Please try following steps:
1. Reverse the payment
    (Most like the payment was confirmed in a bank statement)

2. For the bank statement part there is an payment allocation now -> this has to be assigned to tax management

3. Now you see a task in tax clearing -> assign it to the payment from the tax declaration.

Modifying the P&L Structure is not requried at all.

Best regards and thanks

Marlene

PS: I will provide a document for the same in 2-3 weeks.

[jiawen_wei]

Hi Marlene,

I have some questions regarding the steps you provided:

1.  I do not have any question on step 1.  In order to reverse the payment, I will need to reverse the payment allocation created for this payment.  This action will re-opens the payment allocation task.

2. In your step 2, what do you mean by "assign to tax management"?  I am assuming I need to re-do the payment allocation re-opened from step 1.  But I am confused by "assigned to tax management".  Are you referring to the tax prepayment created under tax management?

3. I guess this step might become clearer after step 2 is resolved.

Thank you.

[frank_jahnigen]

Hi Jiawen,

In case a vat-return results in a payable you might initiate a tax payment directly from the VAT Return view.

Another option is to generate and to allocate a tax-payment via bank statement processing in resulting payment allocations.

The payment amount will have to be allocated via Customer/Supplier to the defined Tax-Authority and 'Payment Allocated to: Tax Payables or Receivables'.

In the resulting tax payment you can then select open vat item(s) resulting from specific vat-return(s) for clearing.

Hope this clarifies,

Frank

[jiawen_wei]

Hi Frank,

I have allocated the payment against the tax authority, now I have a tax payment created under Tax management and the check is automatically matched with the tax payment.

However, I am now having trouble posting the tax payment.  The post button just greyed out.  I am wondering if it is because I don't have any tax return allocated to the tax payment?  I don't think this is the reason though.

Please share any idea.

Thanks.