SM Tax Analysis Report overview
Function acronym: SMRT
This report is used by Canadian companies to prepare monthly or quarterly tax reports for the appropriate taxing authorities. The report calculates taxes based on tax jurisdictions and rates set up in SA Goods and Services Tax Setup and SA Local Tax Setup.
This report summarizes the taxes calculated for invoices, lists them by tax jurisdiction, and provides a total for each jurisdiction. The report can also be used as an audit trail of all taxable and non-taxable order entry transactions. The data for this report comes from the sales order records. This report is sorted by tax group, authority, and province, depending on the jurisdictions you specify in the report range, Tax Authority.
You can run this report multiple times because no file updating occurs as a result of running the report. Generally, you should run this report monthly or quarterly if you are required to reimburse provincial or federal taxing authorities.
Taxes are calculated for ordered, invoiced, or paid orders depending on which option you specify in the (O)utstanding or (D)ue (Cash Basis Only) field. If the order is non-taxable, taxability is reflected on the report for each jurisdiction, with the order amount reflected as non-taxable.
If tax rates have changed for a jurisdiction, you can run this report for orders with an invoice date that precedes the rate change and select No to Use Current Tax Rates. The report uses the taxes calculated and stored on the sales order, instead of the tax rates defined in SA Goods and Services Tax Setup.
Accrual or Cash basis accounting
Options are influenced by what accounting method you select in the Cash or Accrual setting in SA Company Setup-Taxes-Tax Settings-Tax Analysis. If you use the Accrual accounting method for recording tax liabilities, all orders invoiced and paid during the selected Invoice Date range are printed. If you use Accrual, then the Paid Date range and the (O)utstanding and (D)ue (Cash Basis Only) options are ignored. Sales orders in Stage 4 [Invoiced] and Stage 5 [Paid] that meet all other criteria are included on the report.
If you use the Cash accounting method, you can print only those invoiced orders which have been paid, either partially or fully, and where the taxes collected are due. Select (D)ue (Cash Basis Only). If you select (O)utstanding, only orders in Stage 4 [Invoiced] are included on the report.
When an invoice is paid in Customer Cash Receipts Entry, the tax amounts are recorded as liabilities if your tax analysis method is Cash. Payments are applied to the tax amounts first on invoices; they are not prorated in the case of partial payments. When payments are posted, a General Ledger journal entry is made to transfer accrued amounts to the tax liability accounts you have defined in the Cash Basis General Ledger Accounts section of SA Sales Use Tax Setup-General Ledger.
If your option is Accrual, tax amounts are recorded as tax liabilities and posted to the taxes accrued accounts as soon as the order is invoiced.