Example of Reporting Account Postings in the Interim Tax Register and Tax Register
The following scenario illustrates the reporting difference between the Interim Tax Register and the Tax Register.
Receivables Invoice
The following table shows the accounting entries for an Oracle Fusion Receivables invoice that has two transaction lines, each with a different tax point basis.
|
Account |
Debit Amount |
Credit Amount |
Tax Point Basis |
Description |
|---|---|---|---|---|
|
Receivable |
1140.00 |
|||
|
Revenue |
600.00 |
|||
|
Tax |
60.00 |
Accounting |
Tax at 10% |
|
|
Revenue |
400.00 |
|||
|
Tax |
80.00 |
Tax |
Interim tax at 20% |
Partial Payment
A partial payment of 570 USD reduces the open receivable and transfers 50 percent of the deferred tax to a collected tax account, as shown by the following table:
|
Account |
Debit Amount |
Credit Amount |
Tax Point Basis |
Description |
|---|---|---|---|---|
|
Cash |
570.00 |
|||
|
Tax |
40.00 |
Payment |
50% of the deferred tax |
|
|
Receivable |
570.00 |
|||
|
Tax |
40.00 |
Accounting |
Tax due to the tax authority |
Interim Tax Register
For the 10 percent tax, the Interim Tax Register shows:
|
Transaction Number |
Transaction Class |
Taxable Amount |
Tax Amount |
|---|---|---|---|
|
No data found |
For the 20 percent tax, the Interim Tax Register shows:
|
Transaction Number |
Transaction Class |
Taxable Amount |
Tax Amount |
|---|---|---|---|
|
Inv-Test1 |
Invoice |
400.00 |
80.00 |
|
Cr-Test1 |
Cash Application |
-200.00 |
-40.00 |
Tax Register
For the 10 percent tax, the Tax Register shows:
|
Transaction Number |
Transaction Class |
Taxable Amount |
Tax Amount |
|---|---|---|---|
|
Inv-Test1 |
Invoice |
600.00 |
60.00 |
For the 20 percent tax, the Tax Register shows:
|
Transaction Number |
Transaction Class |
Taxable Amount |
Tax Amount |
|---|---|---|---|
|
Cr-Test1 |
Cash Application |
200.00 |
40.00 |
When an invoice is paid (or partially paid), the tax amount that is transferred from the Interim Tax Account to the Tax Account appears as a negative line on the Interim Tax Register and as a positive line on the Tax Register.
As these examples illustrate, the Interim Tax Register shows only account postings for deferred tax, including the invoice and cash application. The Tax Register shows all tax transactions with immediate settlement as well as all cash applications to a deferred tax invoice.