Voiding of a Sales Tax Report: Process Activity

The following activity will walk you through the process of voiding a tax report and creating a document that was missing in the system, so that the tax report can be prepared again.

Story

Suppose that while reviewing the prepared tax report (which you had not yet released), you realize that the report is missing one invoice for Morning Cafe, which has to be dated February 29, 2024.

To report its tax amount, acting as a SweetLife accountant, you need to void the tax report, process the needed invoice, and again prepare the tax 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.
  • On the Customers (AR303000) form, the MORNINGCAF customer account has been configured, and the NYSTATE tax zone has been added for the customer on the Shipping tab of this form.

Process Overview

In this activity, on the Release Tax Report (TX502000) form, you will void the tax report that has been prepared for 02-2024 but has not been released. On the Invoices and Memos (AR301000) form, you will create and release an AR invoice that should update the tax report. You then prepare the tax report for the 02-2024 period again on the Prepare Tax Report (TX501000) form.

System Preparation

Before you begin to void 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, prepare a tax report, as described in Tax Report Preparation: Process Activity.

Step 1: Updating the Tax Zone

For the purposes of this and the following lessons, you need the NYSTATETAX and NYNOTAX taxes. As you earlier removed them from the NYSTATE tax zone, you need to set them up for this tax zone once again. To do it, proceed as follows:
  1. Open the Tax Zones (TX206000) form.
  2. In the Tax Zone ID box, select NYSTATE.
  3. On the Applicable Taxes tab, remove the NYINCTAX from the table as you no longer need it.
  4. Click Add Row and add the NYSTATETAX tax. Then, add a row with the NYNOTAX tax.
  5. On the form toolbar, click Save to save your changes.

Step 2: Voiding the Tax Report

To void the tax report, proceed as follows:

  1. Open the Release Tax Report (TX502000) form.
  2. Select the report with the following settings:
    • Company: SWEETLIFE (inserted by default)
    • Tax Agency: NYTAXDEP
    • Tax Period: 02-2024
  3. On the form toolbar, click Void Report.

    The system voids the prepared tax report for the 02-2024 period, so that the tax period becomes open again, and the Prepare Tax Report (TX501000) form opens. (If necessary, you can review the status of the tax period in the Status column on the Tax Periods (TX207000) form.)

Step 3: Creating an Invoice with a Sales Tax

To create a taxable AR invoice to be included in the tax report, proceed as follows:

  1. Open the Invoices and Memos (AR301000) form.
    Tip: To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
  2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Type: Invoice
    • Customer: MORNINGCAF
    • Date: 2/29/2024 (inserted by default)
    • Post Period: 02-2024 (inserted by default)
    • Description: Online training
  3. On the Details tab, click Add Row, and specify the following settings for the added row:
    • Branch: HEADOFFICE
    • Transaction Descr.: Online training
    • Ext. Price: 120
    • Tax Category: TAXABLE
  4. On the form toolbar, click Remove Hold to give the invoice the Balanced status, then click Release to release the invoice.
  5. Review the Taxes tab. Notice that the NYSTATETAX has been applied to the invoice.

Step 4: Preparing the Tax Report Again

To prepare the tax report again, 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

    Notice that the report amounts have been updated by the invoice.

  3. On the form toolbar, click Prepare Tax Report to again prepare the report for the 02-2024 period. The 02-2024 tax period is again assigned the Prepared status, and the system opens the Release Tax Report (TX502000) form with the prepared report. (If necessary, you can review the tax period status in the Status column on the Tax Periods (TX207000) form.)
  4. While you are viewing the report on this form, click the link in the Amount column of the Tax Total row to review the documents that updated this line in 02-2024. The invoice to Morning Cafe that you created in Step 3 is now shown in the table.