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