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 |