Tax Report Preparation: Process Activity

The following activity will walk you through the process of preparing a sales tax report.

Story

Suppose that you, as an accountant of SweetLife Fruits & Jams, have to prepare and review a tax report for the 02-2024 tax period, and you will later release the report.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Tax Categories (TX205500) form, the TAXABLE and EXEMPT tax categories have been configured.
  • On the Tax Zones (TX206000) form, the NYSTATE tax zone has been configured.
  • On the Taxes (TX205000) form, the NY State Tax has been configured and assigned to the TAXABLE category. The New York Exempt tax has been configured and assigned to the EXEMPT category.
  • On the Vendors (AP303000) form, the NYTAXDEP vendor has been configured as a tax agency.
  • On the Reporting Settings (TX205100) form, a tax report has been configured for the NYTAXDEP tax agency.

Process Overview

In this activity, on the Prepare Tax Report (TX501000) form, you will prepare a tax report for the specified company and tax agency. On the Tax Report Details (TX502010) form, you will then review the documents included in the tax report.

System Preparation

Before you begin to prepare a tax report, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant Anna Johnson by using the johnson username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 2/29/2024. If a different date is displayed, click the Business Date menu button and select 2/29/2024. For simplicity, in this process activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Preparing a Tax Report

To prepare a tax report, proceed as follows:

  1. Open the Prepare Tax Report (TX501000) form.
  2. In the Summary area, specify the following settings:
    • Company: SWEETLIFE
    • Tax Agency: NYTAXDEP

    The table displays the report lines you have configured earlier, and the amounts accumulated for each report line in the current tax period (02-2024).

    The system displays a warning next to the Tax Period box that one or more tax transactions from the previous periods will be reported in the current period. This can happen if you create a taxable document with a document date that belongs to a closed tax period. The taxes calculated for the document will be included in the tax report for the current period because the tax agency to which you are reporting taxes has the Update Closed Tax Period check box cleared on the Tax Agency Settings tab of the Vendors (AP303000) form.
  3. On the form toolbar, click Prepare Tax Report.

    The 02-2024 tax period is assigned the Prepared status (if necessary, you can review it in the Status column on the Tax Periods (TX207000) form). The system opens the Release Tax Report (TX502000) form with the prepared report. Before you release the report, you will review the documents that relate to different lines in this tax report.

Step 2: Reviewing the Documents in the Report Lines

To review the documents included in the report lines, proceed as follows:

  1. While you are still viewing the report on the Release Tax Report (TX502000) form, click the link in the Amount column of the Taxable Sales row to review the amounts that have been included in this line.

    The Tax Report Details (TX502010) form opens.

  2. On this form, review the documents shown in the table.

    This tax report shows the documents of the SweetLife company, including taxable amounts and tax amounts. On the form, you can see the taxable sale documents of the SweetLife company included in the tax report for February 2024. For each document, you can review the tax and taxable amounts.

You will not release this report at this time.