Setting Up Mexico Deferred Taxes

Note:

Only the Administrator and accountant roles have access to the Mexico Deferred Taxes Setup page. To grant access to other roles, see Granting Access to Scripts for the Mexico Deferred Taxes SuiteApp.

To use the Mexico Deferred Taxes feature, you must configure both transitory and target tax accounts for each deferred tax type:

• Transitory accounts: accounts where deferred tax amounts are held until you run the Mexico Deferred Taxes process. The amounts are shifted then to the target account.

• Target accounts: target receivables accounts are destination accounts into which tax amounts are posted to reflect the payments received from customers (on sales). Target payables accounts are destination accounts into which tax amounts are posted to reflect the payments made to the vendor (on purchases).

Note:

For Mexico, you specify only transitory accounts on the Tax Type records. This differs from the accrual basis, where the accounts specified on the Tax Type records are the target accounts to which taxes are directly posted.

To see the different default accounts for Mexico Deferred Taxes, see Default Deferred Tax Accounts for Mexico.

For more information about the Tax Type record, see Understanding Tax Types and Tax Codes in SuiteTax.

To set up tax accounts for Mexico Deferred Taxes:

1. Go to Setup > Tax > Set Up Mexico Deferred Taxes.

2. From the Tax Type column, click the Mexico tax type that you want to set as deferred. You can see on the list both deferred and non-deferred taxes for Mexico.

   The Tax Type record opens in a new window.

   Note:

   If you use tax groups, each tax code included in a tax group follows the definition of its corresponding tax type.

3. Click Edit.

4. On the Accounts subtab:

   1. Under the Payables Account column, select the transitory account to which you want NetSuite to post and hold taxes until the payment is received.

   2. Under the Receivables Account column, select the transitory account to which you want NetSuite to post and hold taxes until the payment is made.

5. Click Save.

6. Repeat steps 2 – 4 for every Mexico deferred tax type you want to edit.

7. Go back to the Mexico Deferred Taxes Setup page.

8. From the Tax Type column, identify the Mexico tax types for which you have configured transitory accounts and want to set as deferred.

9. Click Edit.

10. Select the target accounts you want to assign to each of them.

    Note:

    A tax type is considered deferred when at least one target account (either the Target Payables Account or the Target Receivables Account) is selected. If you do not specify any account for a tax type, the system does not consider that tax type to be deferred. In that case, NetSuite uses the accounts specified on the Tax Type record as target accounts.

11. Click Save.

Related Topics

• Mexico Deferred Taxes Overview
• Mexico Deferred Taxes Installation
• Default Deferred Tax Accounts for Mexico
• Running the Mexico Deferred Taxes Process
• Generating the Mexico Deferred Taxes Report

General Notices