Example 1 - Payable On Due Date, Customer Pays In Full
The following is an example of the financial events that transpire when a customer is billed and full payment is received prior to the bill due date. The accounting method in this case is Payable On Due Date.
Event |
GL Accounting |
Tax Payable Balance |
Tax Holding Balance |
Bill segment created |
A/R 110 Revenue <100> Tax Holding <10> |
0 |
(10) |
Payment received |
Cash 110 A/R <110> |
0 |
(10) |
Adjustment created on bill due date |
Tax Holding 10 Tax Payable <10> |
(10) |
0 |