Steps: Reconcile Taxable Transactions to Ledger Accounts
- Create taxable transactions. Example: Supplier invoices.
- Set up tax declarations. See Steps: Create Tax Declarations.
You can reconcile tax details from taxable transactions to tax ledger accounts:
- At period close, to ensure that you properly record tax details and journals.
- Before sending draft tax declarations for approval, to ensure that you properly declare all taxable transactions.
- (Optional) Access theGenerate Period Beginning Balances for Reconciliation Activitiestask.You can generate period beginning balances manually if you haven't closed previous ledger periods, or if they’ve since changed.If you don't generate period beginning balances manually or by closing ledger periods, the tax reconciliation reports only display tax details for taxable transactions and don't track balances.Security:Process: Period Enddomain in the Common Financial Management functional area.
- Run theTransaction Tax Reconciliationreport.Reconcile expected tax balances based on period tax activities against ledger balances at the end of the period.Security:
- Report Executiondomain in the Tenant Non-Configurable functional area.
- Reports: Transaction Taxdomain in the Common Financial Management and Customer Accounts functional areas.
- (Optional) Create Tax Declarations.
- (Optional) Run theTax Declaration to General Ledger Reconciliationreport.Reconcile taxable transactions included in tax declarations against tax ledger accounts activity.Security:
- Report Executiondomain in the Tenant Non-Configurable functional area.
- Reports: Transaction Taxdomain in the Common Financial Management and Customer Accounts functional areas.
If you identify discrepancies, you can:
- Drill down on transactions and journal lines to assess if you need to remediate discrepancies.
- Correct your setup or transactions as necessary.
- Reconcile again until you're confident that you properly record and declare taxable transactions.