Release of Sales Tax Report: General Information

Once you prepare the tax report on the Prepare Tax Report (TX501000) form, the Release Tax Report (TX502000) form automatically opens. On this form, you can release a tax report for a selected company, reporting period, and tax agency by clicking Release on the form toolbar. When the report is released, the system closes the selected reporting period. Depending on the settings in your system, the release of the report can also prompt the system to generate an AP bill with the tax amount to be paid to the selected tax agency, as described below.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn how to release a tax report and generate an AP bill for the tax agency.

Applicable Scenarios

You release a tax report after you have prepared it and made sure that all the taxable documents have been included in the report. Depending on the settings in the system, on release of the tax report, the system generates an AP bill for the tax agency.

AP Documents Generated on Release of the Tax Report

You can set up the system to generate an AP bill once the tax report is released. The AP bill will contain the total tax amount that you must pay to the tax agency for the selected reporting period according to the released tax report. After the tax report is released, the corresponding AP bill appears in the list on the AP Documents tab of the Release Tax Report (TX502000) form.

Note: If your company type is With Branches Requiring Balancing and you file taxes by company branches—that is, the File Taxes by Branch check box is selected for the company on the Company Details tab of the Companies (CS101500) form—prepare tax reports for all branches first, and then release the company tax report.

If the tax agency owes money to your company according to the documents included in the revision, the system generates an AP debit adjustment. This can happen in the following cases:

The total tax to be claimed exceeds the total tax to be paid if the tax is a VAT
The total tax amount in credit memos exceeds the total tax amount in invoices
The Net Tax amount is negative

To set up the system to generate an AP bill while releasing a tax report, on the Reporting Settings (TX205100) form for the report, you need to configure a reporting line that accumulates appropriate tax amount, and select the Net Tax check box for that line. If this check box is selected and the Automatically Generate Tax Bill check box is selected for the tax agency on the Tax Agency tab of the Vendors (AP303000) form, the system will generate AP bills when a tax report is released.

If you prepare and release a tax report for a closed tax period (that is, for a period for which the tax report has been already released; for details, see Tax Report Preparation: To Prepare a Tax Report for a Closed Tax Period), the system will generate another AP bill according to this revision of the tax report. This AP bill will be listed on the AP Documents tab (in addition to the AP bill generated by the previous release). Each AP bill will contain the amount of the particular tax report revision.

Generation of an AP Bill with a Cash Discount

Depending on the vendor settings, the AP bill generated on release of a tax report can have a cash discount, which is displayed in the Cash Discount box on the Bills and Adjustments (AP301000) form.

The credit terms that determine whether the tax bill can have a cash discount applied to it are specified for the tax agency in the Terms box on the Financial tab of the Vendors (AP303000) form. For more details on credit terms, see Credit Terms.

Closing the Tax Period

When the tax report is released, the system automatically closes the tax period. Taxable invoices posted after the tax period has been closed will be reported in the next open period.

If you do not want the invoices to be reported in the next open period, you can prepare a revision of the tax report for the closed tax period (if this is allowed by the tax agency) to include the invoices to the next revision of the tax report for the period. For more details, see Tax Report Preparation: To Prepare a Tax Report for a Closed Tax Period.