Concept: Tax Reconciliation Activities
Tax reconciliation activities link together:
- Taxable transactions with tax: accounting center summary journals, accounting journal, and operational transactions. Example: Supplier invoices.
- Their tax details from tax rate applications (TRAs) and payment tax rate applications (PTRAs). See Reference: Transaction Tax Business Objects.
- The corresponding tax journal lines.
For companies where you enable tax reconciliation, Workday creates tax reconciliation activities when you create taxable transactions after the initial period for reconciliation.
Workday generates tax reconciliation activities for all balance sheet and income statement tax ledger accounts, but tax reconciliation reports only use tax reconciliation activities from relevant tax ledger accounts.
Business Objects
Workday records tax reconciliation activities with these business objects:
Business Objects | Considerations |
|---|---|
Tax Reconciliation Activity | Links the TRA or PTRA on a taxable transaction to the corresponding journal line. |
Tax Reconciliation Activity for Tax Detail | Each tax reconciliation activity for tax detail represents a unique combination of:
Tax reconciliation activities for tax details ensure that we capture all activities when Workday doesn't generate the same number of tax details and journal lines for transactions. Example: When you create and update a supplier invoice in the same open period, and leave the Always Reverse Accounting and Accounting Center Summary Journals tenant option unchecked, Workday generates:
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Standard Reports
You can use these standard reports, secured to the
Reports: Transaction Tax
domain in the Common Financial Management and Customer Accounts functional areas, to review the details of tax reconciliation activities:
Reports | Considerations |
|---|---|
Find Tax Reconciliation Activities
| Find tax reconciliation activities by companies, tax rates, and periods.
You can filter results by these activity types:
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Find Tax Reconciliation Initial Balances
| Find tax reconciliation initial balances for given companies, tax rates, and ledger accounts. |
Report Data Sources
You can use these report data sources (RDSs) to create custom reports. The RDSs are secured to the:
- Reports: Financial Accountingdomain Financial Accounting functional area.
- Reports: Transaction Taxdomain in the Common Financial Management and Customer Accounts functional areas.
Report Data Sources and Business Views | Considerations |
|---|---|
Business View for Tax Reconciliation Activities for Tax Details
| Provides insight into tax amounts that Workday posts to a single ledger account and combines details from the corresponding:
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Tax Reconciliation Activities
Tax Reconciliation Activities for Tax Details | You can use the Tax Reconciliation Activities RDS as an alternative to the Business View for Tax Reconciliation Activities for Tax Details RDS.
To ensure that you report on all tax activities, including canceled activities due to reversals, also use the Tax Reconciliation Activities for Tax Details report data source when you clear these check boxes in the Journal Options section of the Edit Tenant Setup - Financials task:
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