Release of Sales Tax Report: Process Activity

The following activity will walk you through the process of releasing a tax report and closing the current tax period.

Story

Suppose that you, as an accountant of SweetLife Fruits & Jams, have to release the tax report prepared for the 02-2024 tax period and generate an AP bill to be paid to the New York State Department of Revenue.

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 tax category has 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 and the NYSTATE tax zone. The New York Exempt tax has been configured and assigned to the EXEMPT category and the NYSTATE tax zone.
  • 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, you will release the tax report on the Release Tax Report (TX502000) form, review the AP bill generated by the system on the Bills and Adjustments (AP301000) form, and then review the GL transaction generated by the system on the Journal Transactions (GL301000) form. On the Tax Periods (TX207000) form, you will review the tax periods for the current tax year. Finally, you will review all the lines in the tax report by generating a report on the Tax Details (TX620500) form.

System Preparation

Before you begin to release the 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.
  4. As a prerequisite activity, process a tax adjustment to the prepared tax report as described in Sales Tax Adjustments: Process Activity.

Step 1: Releasing the Tax Report and Reviewing the AP Bill

To release the tax report and review the generated AP bill, proceed as follows:

  1. Open the Release Tax Report (TX502000) form.
  2. In the Summary area of the form, specify the following settings:
    • Company: SWEETLIFE (inserted by default)
    • Tax Agency: NYTAXDEP
    • Tax Period: 02-2024 (inserted automatically by the system)
  3. On the form toolbar, click Release.

    With the release of the tax report, the system closes the corresponding reporting period and generates an AP bill, which contains the total tax amount that you must pay to the tax agency specified in the tax report. The generated AP bill appears on the AP Documents tab.

  4. On the AP Documents tab, click the link in the Reference Nbr. column for the AP bill generated for the HEADOFFICE branch and review its details on the Bills and Adjustments (AP301000) form, which opens.
  5. On the Financial tab, click the Batch Nbr. link, and on the Journal Transactions (GL301000) form, review the transactions generated for this bill.

    On release of the tax bill:

    • The Accounts Payable account of the tax agency (20000) is credited in the accumulated tax amount that should be paid to the tax agency.
    • The Tax Payable account of the tax agency (24100) is debited in the accumulated tax amount, so the balance of the account becomes 0 at the start of the next tax period.

Step 2: Reviewing the Tax Periods

To review the tax periods, proceed as follows:

  1. Open the Tax Periods (TX207000) form.
  2. In the Tax Agency box, select NYTAXDEP.
  3. Review the 02-2024 tax period.

    Notice that the tax period has the Closed status, and the Net Tax Amount column shows the amount accumulated in the line for which the Net Tax check box is selected on the Report Lines tab of the Reporting Settings (TX205100) form.

  4. Click the link in the Net Tax Amount column in the row with the 02-2024 tax period and review the Tax Report Details (TX502010) form, which opens.

    The amounts in the Report Tax Amount column add up to the Net Tax Amount on the Tax Periods form.

Step 3: Reviewing the Tax Report Lines for the Closed Period

To review the tax report lines for the closed period, proceed as follows:

  1. Open the Tax Details (TX620500) form.
  2. On the Report Parameters tab, specify the following settings:
    • Company/Branch: SWEETLIFE (inserted by default)
    • Tax Agency: NYTAXDEP
    • Tax Period: 02-2024
  3. On the form toolbar, click Run Report and review the generated report.