Using the AZ Ledger for Mexican IETU Calculations

In some countries, you might need to maintain the AZ ledger with data that is identical to the data in the AA ledger. For example, to make the calculations necessary to report Mexico's alternative minimum tax (Impuesto Empresarial a Tasa Unica [IETU]), you maintain duplicate ledgers so that you can compare the IETU to the standard income tax. To work with the IETU, you prepare parallel calculations annually that you use to compare the IETU calculated tax amounts to other calculated tax amounts. You use the comparison to determine the income tax that you must pay.

As part of the IETU requirement, the tax recognition as fiscal credit or fiscal debit is possible only if you receive from your bank a confirmation that the receipt and the payments were accredited or debited in the bank account. You can use the bank statement and bank account reconciliation processes to track the dates that your bank confirms the debits and credits.

You can maintain a parallel data set that you can use for your IETU calculations by writing the reconciliation clear date and reconciliation flag that appears in the AA ledger to an additional ledger type, such as the AZ ledger. You specify the dates that the bank confirms receipts and payments when you reconcile bank statements, and write those dates to the Account Ledger table (F0911) for the AA ledger and the additional ledger type that you specify in processing options.

The system maintains data for the accrual accounting method in the AA ledger and maintains data for the cash basis accounting method in the AZ ledger. If you use cash basis accounting, you should specify the AZ ledger as the additional ledger to update with bank statement and bank account reconciliation information. The system creates entries in the AZ ledger when you run the Create Cash Basis Entries program (R11C850).

You must reconcile statements and accounts after running the Create Cash Basis Entries program if you specify AZ as the additional ledger type because the Create Cash Basis Entries program generates the original AZ records. The AZ ledger records cannot be updated by the bank statement and back account reconciliation programs until you create the ledger records by running the Create Cash Basis Entries program.