Tax Reporting

Financials Tax Reporting provides a flexible reporting mechanism that allows you to report on the tax transactions, and the related 'taxable' gross and net values.

Tax Reporting (TXR) allows you to produce tax reports in a variety of different formats, depending on the reports defined using Data Source Designer.

Two tax report formats are provided as standard with Financials:

  • Tax Listing Detail Report (Document Format TL1) - this report analyzes the tax transactions by transaction reference, for example by invoice number. Each transaction reference is printed on a single line containing the gross, net and tax values.
  • Tax Listing Summary Report (Document Format TL2) - this report analyzes the tax transactions according to the account code to which the gross taxable value has been posted, typically the debtor, creditor and client accounts. For each account it identifies the gross, net and tax values.

Selecting the Tax Report Transactions

The standard Financials tax reports report on selected transactions, according to your selection criteria. The selection criteria is determined by the tax filters associated with the tax report document format.

The standard tax reports use a single tax filter that is assigned to the document format using Document Format (DFS).

The tax filter is defined using Filter Designer (FLD) and determines the type of transactions, and transaction details that are extracted for the tax reports.

For the standard tax reports, the tax filter extracts either the gross, net or tax related transactions depending on the range of account codes you select. The tax report then uses the document format Offset selection capability to extract the corresponding gross, net or tax transactions.

Note: The Offset option for the tax reports must be set on Document Format (DFS) to automatically extract these offset journal postings.

For example, if you enter the range of tax account codes as the filter account code selection to extract the tax transactions, the Offset facility extracts the corresponding gross and net transactions automatically. It uses the journal transaction reference on each tax transaction to retrieve the relevant gross and net transactions.

As an alternative you might use multiple filters to retrieve the gross, net and tax transactions separately and define a report that analyzes these transactions.

Separating the Gross, Net and Tax Transactions

Having extracted all of the gross, net and tax transactions the tax reports summarize these groups of related transactions by account or transaction reference, depending on the type of tax report you are running.

Note: In order to do this, the tax reports use a Gross/Net/Tax indicator on each transaction to distinguish between the three types of transactions. This indicator must be set using a business rule. For example, the business rule could use account code on each transaction to determine the transaction type.

Analyzing the Tax

The tax reports use the tax codes on the tax transactions to determine the type of tax that has been calculated. These tax codes are the analysis codes defined for the Tax Dimension identified on Ledger Setup (LES). The tax rate associated with each tax code is defined using Tax Details (TXD).

Printing and Posting Provisional Transactions

The Tax Reports can optionally include provisional transactions. The tax filter provided with the standard tax reports allows you to include or exclude provisional transactions.

If provisional transactions are included, Tax Reporting can optionally post these as permanent transactions on the ledger as part of the reporting process. To post the transactions you must set the Final Print reporting option on the document format print request form.