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 |
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