Example 4 - Payable On Earlier Of Payment Or Due Date, Customer Pays In Full
In the following example a customer is billed and full payment is received prior to the bill due date. The accounting method in this case is Payable On Earlier Of Payment Or 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>
Tax Holding 10
Tax Payable <10>
(10)
0